Singapore stock market update

24th Sept 2009 China Animal proposed placement of new shares

Singapore listed company China Animal Healthcare just announced that the Company has entered into a placement agreement dated 24 September 2009 ("Placement Agreement") with DBS Bank Ltd. as placement agent ("Placement Agent").

Pursuant to the Placement Agreement, the Company proposes to issue up to 100,000,000 New Shares and (in the event the Upsize Option is exercised in full) up to 20,000,000 Additional New Shares (together with the New Shares, the "Placement Shares") for purposes of a private placement at an indicative issue price of S$0.215 per Placement Share (to be finalised). No prospectus or offer information statement will be lodged by the Company with the Monetary Authority of Singapore in connection with the Placement.

The Company is undertaking the Placement as a strategic initiative to further enhance its financial flexibility and competitive position. In particular, the Placement will provide the Company with additional financial strength and capacity to pursue suitable acquisitions and opportunities arising in its key markets.