The board of directors of Sihuan Pharmaceutical Holdings Group Ltd. announced that the active pharmaceutical ingredients of and injection form of Benapenem, being a Category 1.1 new drug developed by KBP BioSciences Pharmaceutical Technical Co. Ltd.(" KBP BioSciences"), a wholly-owned subsidiary of the Company, received the Approval for Clinical Studies (2012L02703, 2012L02697) from the State Food and Drug Administration. Phase I of clinical studies are set to begin in the first half of this year.

The product has been patented in China and the United States. It is the third Category 1 innovative drug for which the Group has received Approval for Clinical Studies. The product is a carbapenem drug, being a class of broad spectrum -lactam antibiotics which are widely used to treat multiple drug resistance in hospitals.