Sinovac Biotech Ltd. to Hold Annual Meeting of Stockholders and Business Objectives for 2006

Sinovac Biotech Ltd. to Hold Annual Meeting of Stockholders and Business Objectives for 2006

February 28, 2006

    BEIJING, Feb. 28 /Xinhua-PRNewswire/ -- Sinovac Biotech
Ltd. ("Sinovac" or the "Company") (Amex:
SVA - News) will hold its annual meeting of stockholders
concurrently in Beijing, China and St. John's, Antigua, at
9:00 a.m. (UTC +8) on March 22, 2006. The meeting will be
held at No. 39 Shangdi Xi Road, Haidian District, Beijing,
PRC 100085 and, at the corresponding time (9:00 p.m. on
March 21, 2006), in Antigua at No. 6 Temple Street, St.
John's, Antigua.

    Business Objectives for 2006

    Sinovac CEO, Mr. Weidong Yin believes that Sinovac will
rise to the challenge in 2006.   Mr. Yin stated, "I
want to increase sales revenue by at least 40 to 50% from
2005 figures; begin phase II clinical trials for our
pandemic influenza vaccine; increase production capacity
for our influenza vaccine; complete pre-clinical trials for
our new Japanese encephalitis vaccine; and further develop
our corporate governance procedures." 

    Mr. Yin went on to say, "I believe Sinovac's hard
work in 2005 may result in significant corporate
developments in 2006." 

    Sales and Marketing

    Sinovac will continue to focus most of its marketing
efforts on domestic sales. This strategy takes advantage of
a new State Food and Drug Administration (SFDA) initiative
to improve the quality control, safety and efficacy of
biological products, such as vaccines.  The SFDA initiative
titled "Batch Release Guideline for Biological
Products", subjects every batch of domestic and
imported products to compulsory testing and review. Only
batches that pass the test and review process are approved
for sale. 

    Since Sinovac's inactivated hepatitis A vaccine
(Healive) is safe, effective and stable, Sinovac believes
that this regulation is expected to help Sinovac gain
market share over competitors which sell live attenuated
hepatitis A vaccines.  Furthermore, Sinovac believes
enforcement of this regulation will force numerous inferior
products out of the market. 

    Anticipating this result, Sinovac plans to take
advantage of this opportunity to increase greatly its
domestic market share by penetrating less affluent, densely
populated areas. In order to fill the projected hepatitis A
vaccine supply shortfall, Sinovac added a vial packaging
line of Healive, which are less expensive than the premier
pre-filled single dose syringe packaging. As a result,
Healive is expected to launch into new market segments with
more affordable pricing, while maintaining excellent profit
margins.  Sinovac believes Healive will continue to gain
market share in high income areas with the pre-filled
syringe packaged product.

    Sinovac is confident its combined hepatitis A&B
vaccine (Bilive) sales will continue to grow, but probably
not as rapidly as Healive.  Sinovac also expects sales of
its newest vaccine (Anflu) for seasonal influenza should
begin this year. 

    Production

    Sinovac has improved the production capacity of Healive
by approximately 50%. The addition of a vial packaging line
and improved production efficiencies are expected to result
in lower unit costs; enable product growth for expected
increase in demand; resulting in a larger market share. 

    In 2006, Sinovac also plans to increase its flu vaccine
production capacity so that it can satisfy demand in the
event of an influenza pandemic. 

    R&D

    Sinovac will continue Phase I clinical trials of its
proprietary pandemic influenza vaccine (Panflu) and
anticipates completion in June 2006. As soon as possible
afterwards, Sinovac expects to begin Phase II trials. As
events progress, Sinovac plans to apply for additional
government support for this nationally important project. 

    Sinovac's vaccine pipeline continues to grow; with
Sinovac working to complete pre-clinical trials of Japanese
encephalitis by the end of 2006.  Sinovac's vaccine is a
Vero cell-cultured inactivated type, which is more
effective and safe than the other types of Japanese
encephalitis vaccine. Currently, supplies of this
cell-based vaccine are limited in China.

    Corporate Governance

    Sinovac plans to select a well-known accounting firm to
help improve internal control procedures to become fully
compliant with Sarbanes-Oxley Section 404.  The Company
will test these internal control procedures to ensure their
effectiveness for implementing good corporate governance and
internal controls over financial reporting. 

    About Sinovac 

    Sinovac Biotech Ltd. is a world leader in the research,
development, manufacture and commercialization of vaccines
for endemic and pandemic viruses such as hepatitis and
influenza, and for fast emerging viruses such as pandemic
influenza (bird flu) and SARS. The Company's objective is
to provide Chinese children with the best vaccines in the
world, and let children in the world use vaccines made in
China.

    Additional information about Sinovac is available on
the Company website, http://www.sinovac.com and the Sinovac
Investor Relations website,
http://finance.groups.yahoo.com/group/Sinovac_Biotech_IR .


    For additional information, investor newsletters and
corporate updates, please email your request to:
[e-mail]. 

    THIS NEWS RELEASE MAY INCLUDE FORWARD-LOOKING
STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E
OF THE UNITED STATES SECURITIES AND EXCHANGE ACT OF 1934,
AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES,
DEVELOPING ADDITIONAL PROJECT INTERESTS, SINOVAC'S ANALYSIS
OF OPPORTUNITIES IN THE ACQUISITION AND DEVELOPMENT OF
VARIOUS PROJECT INTERESTS AND CERTAIN OTHER MATTERS. THESE
STATEMENTS ARE MADE UNDER THE "SAFE HARBOR"
PROVISIONS OF THE UNITED STATES PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND INVOLVE RISKS AND
UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS
CONTAINED HEREIN. 

    For more information, please contact:

     Craig H. Bird
     Investor Relations
     Tel:   [phone] or Toll Free: [phone]
(North America)
     Email: [e-mail]
    
    Sinovac Investor Relations website:
    
http://finance.groups.yahoo.com/group/Sinovac_Biotech_IR/?yguid=242969163


SOURCE  Sinovac Biotech Ltd.