Tongjitang Chinese Medicines Repurchases 19.3 Million Ordinary Shares in Private Transactions

Transactions Accretive to Earnings Per ADS

• Press Release
• Source: Tongjitang Chinese Medicines Company
• On 4:01 pm EDT, Monday October 12, 2009

SHENZHEN, China--(BUSINESS WIRE)--Tongjitang Chinese Medicines Company (NYSE: TCM - News) (“Tongjitang” or the “Company”), 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 completed the repurchase of an aggregate of 19.3 million ordinary shares of the Company in privately negotiated transactions. All of the sellers of these shares, namely ML Global Private Equity Fund, L.P., Merrill Lynch Ventures L.P. 2001, Samtung Investment Limited and Joyful Hub Limited, were non-affiliates and non-management investors in the Company. These repurchased shares constituted approximately 15 percent of the Company’s issued and outstanding shares before the transactions. Tongjitang repurchased these shares for approximately $19.8 million, or $4.10 per ADS.

Related Quotes

Symbol	Price	Change
TCM	3.91	+0.04

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Mr. Xiaochun Wang, Chairman and CEO of Tongjitang, stated, “We believe the share repurchase transactions are beneficial to all shareholders because we utilized a small portion of our cash balance to repurchase 15 percent of our outstanding shares, which will be accretive to our earnings per ADS.”

Following the close of the transactions, the Company had approximately 108.9 million issued and outstanding ordinary shares, compared to approximately 128.2 million before the repurchase and cancellation of the shares.

About Tongjitang Chinese Medicines Company

Tongjitang Chinese Medicines Company, through its operating subsidiaries Tongjitang Pharmaceutical, Tongjitang Distribution, Tongjitang Chain Stores, Guizhou Long-Life Pharmaceutical Company Limited, Qinghai Pulante and Anhui Jingfang, is a vertically integrated and profitable specialty pharmaceutical company focused on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China. Tongjitang’s principal executive offices are located in Shenzhen, China.

Tongjitang’s flagship product, Xianling Gubao, is the leading traditional Chinese medicine for the treatment of osteoporosis in China as measured by sales in Renminbi. In addition to Xianling Gubao, the Company manufactures and markets 36 other modernized traditional Chinese medicine products and 37 western medicines. Please visit www.tongjitang.com for more information.

Integrated Corporate Relations
Christine Duan
In the U.S. 203-682-8200 (Investor Relations)
In China: 86 10 8523 3087