A. Strategic Objectives

The development strategic objectives of Pegasus Pharmaceuticals Group Inc. (“Pegasus”):

• Leading by new drug development which is supported by clinical applications and preventive medicines
• Driving the collaborative development of life sciences research, health education and training, senior care, and production of Active Pharmaceutical Ingredients (API)

Endeavoring to be a world-renowned enterprise in the biomedical and pharmaceutical industry.

B. Dalian BioPark

Based on the above strategic objectives, Pegasus is planning to develop a large scale BioPark. On July 1, 2009, the municipal government of Dalian, Liaoning province, China approved the development project of Pegasus BioPark (Dalian) Co., Ltd. The BioPark site will be located on the seashore of Zhuanghe City under the jurisdiction of Dalian, which is on the north shore of the Yellow Sea between the cities of Dalian and Dandong. The municipal government will provide 1.074968 million square meters of land, in which 240,000 square meters are approved for manufacturing and 250,000 square meters are for residential. The production zone will produce and supply a series of Active Pharmaceutical Ingredients (API), pharmaceuticals and healthcare products for botanical small molecule drugs, peptides (protein fragments) drugs, and peptide vaccines in global market.