CTI.L Regulatory News (CTI)

Cathay International Holdings Limited

("Cathay" or the "Company")

Lansen Received Technology Endorsement from National Torch Program

Hong Kong, 27 February 2012 - Cathay International Holdings Limited (LSE: CTI.L), an investment holding company and leading investor in the growing healthcare sector in the People's Republic of China ("PRC"), is pleased to announce that its subsidiary Lansen Pharmaceutical Holdings Ltd ("Lansen") (HKEX: 503) has received a National Torch Program Certificate from The Ministry of Science and Technology of the People's Republic of China ("PRC") for its core DMARD product, Total Glucosides of White Peony Capsules (also known as Pafulin capsules).

The National Torch Program, approved by the State Council, is recognized as one of China's most important programs for high-tech industries. This national achievement significantly enhances brand awareness in the marketplace, particularly on the effect and quality of Pafulin as an innovative and competitive drug, and should positively impact on the sales of Pafulin for Lansen. This certificate also evidences the scale of Lansen's R&D efforts and will support Lansen's application for national and municipal science and technology project funding, high-tech enterprise status and engineering and technology center certification in the future.

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About Cathay

Cathay International Holdings Limited (CTI.L), focused on the People's Republic of China ("PRC"), is an investment holding company and a leading investor in the growing healthcare sector in China. The Group employs more than 2,000 people across the PRC, including over 30 specialist corporate and business development staff based at the holding company's headquarters in Hong Kong and Shenzhen.

Cathay aims to identify investment opportunities with emphasis on high growth healthcare markets and build them into market sector leaders, with a clear exit strategy. Cathay has demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: Lansen Group, a leading specialty pharmaceutical company focused on rheumatology and Haotian Group, a company engaged in the manufacture, marketing and sale of key active ingredients for healthcare products, including inositol. To complement its healthcare portfolio, Cathay has an R&D business focused on bringing new products to the growing Chinese market.

Cathay also has a private equity investment arm focused on minority investment opportunities and a hotel investment.

About Lansen

Lansen is a leading pharmaceutical company in China which focuses on the rheumatic specialty prescription western pharmaceuticals for the treatment of autoimmune rheumatic diseases. Founded in 2002, the Group is engaged in the manufacture, distribution and development of rheumatic drugs, with a leading position in the disease-modifying anti-rheumatic drugs ("DMARDs") market in the PRC. In addition to 13 non-core medical products, the Group has three rheumatic specialty prescription western pharmaceuticals as its core products, of which Pafulin and Tuoshu rank first and fourth respectively in terms of DMARDs' market share. The Group has established an extensive distribution network, covering more than 1,000 hospitals in 25 provinces and four municipal cities. The headquarters for production and administration is located in Ningbo, Zhejiang Province of the PRC, with modern production facilities occupying an area of 64,000 square meters. Apart from the Chinese Government's GSP certification, the Group's operating facilities are GMP-certified by the State Food and Drug Administration and adhere to stringent and closely monitored quality assurance and safety control processes.

About National Torch Program

The Torch Program was launched in August 1988 and is recognized as one of China's most important programs for high-tech industries. The program, approved by the State Council and implemented by the Ministry of Science and Technology, is highly competitive with strict requirements and aims to facilitate the commercialization, industrialization and internationalization of new and high-tech products which have strong economic benefits in domestic and international markets. The program mainly includes projects in new technological fields such as raw materials, biotechnology, electronic information, and clean-technology.