Tongjitang special committee to evaluate Hanmax Investment and Fosun Industrial buyout proposal

Apr 13 2010

Tongjitang Chinese Medicines Company (the "Company" or "Tongjitang") (NYSE: TCM), a leading specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, today announced that it has established a special committee (the "special committee") to evaluate the proposal presented on April 8, 2010 by Hanmax Investment Ltd. and Fosun Industrial Co., Ltd. If the proposal is accepted, Hanmax Investment Ltd. and Fosun Industrial Co., Ltd. will acquire all of the outstanding ordinary shares of the Company (including ordinary shares outstanding in the form of American Depositary Shares) in a merger transaction under Cayman Islands law that would result in the Company becoming a privately-held company.

The special committee is composed of the Company's three independent directors: Mr. Yongcun Chen, Dr. Harry K. Genant, and Mr. David R. White. The special committee was directed to review the proposal, and intends to provide an assessment of the proposal to the Company.