Daphne Board of Directors Office             2nd Issue of 2011            January 17, 2011

      On January 13, 2011, representatives of the Daphne Pharmaceutical Co., Ltd., at invitation by the China Association of Traditional Chinese Medicine Committee for TCM Material Plantation & Breeding, attended a signing ceremony held in Beijing, among other signatories from non-pollution base production material application showcasing enterprises. Liu Jiming, VP at Daphne, in the capacity of representative of Party A, signed on an Agreement on Application of Non-Pollution Base Production Materials. The other parties to the agreement are Taiwan AgriAqua (as Party B) and the China Association of Traditional Chinese Medicine Committee for TCM Material Plantation & Breeding, (as Party C).

       On the principles of mutual benefit, joint development and credibility, the advantages of each party will be made full use of to promote application of organic fertilizer in TCM drug plantation.