China Traditional Chinese Med Hldg CoLtd : LITIGATION UPDATE

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CHINA TRADITIONAL CHINESE MEDICINE HOLDINGS CO. LIMITED

中國中藥控股有限公司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 570) LITIGATION UPDATE

Reference is made to the announcement (the "Announcement") of China Traditional Chinese Medicine Holdings Co. Limited (the "Company") dated 6 April 2016 concerning the alleged bribery offence by organisation（單位行賄罪）involved by GD Yifang, an indirect non-wholly owned subsidiary of the Company. Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

The Board wishes to update the shareholders of the Company and public investors that on 21 July 2017, the Intermediate People's Court of Guangzhou City of Guangdong Province（廣東省廣州市中級人民法 院）of the PRC delivered a verdict that GD Yifang was acquitted of the alleged offence.

By order of the Board

China Traditional Chinese Medicine Holdings Co. Limited WU Xian

Chairman

Hong Kong, 21 July 2017

As at the date of this announcement, the board of directors comprises eleven directors, of which Mr. WU Xian, Mr. WANG Xiaochun, Mr. ZHAO Dongji and Ms. HUANG He are executive directors; Mr. LIU Cunzhou, Mr. DONG Zenghe, and Ms. TANG Hua are non-executive directors; and Mr. ZHOU Bajun, Mr. XIE Rong, Mr. YU Tze Shan Hailson and Mr. LO Wing Yat are independent non-executive directors.