Luye Pharma : ANNOUNCEMENT - PROGRESS OF PATENT LITIGATION IN RELATION TO RIVASTIGMINE 1 DAY PATCH

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LUYE PHARMA GROUP LTD.

綠 葉 製 藥 集 團 有 限 公 司

(Incorporated in the Bermuda with limited liability)

(Stock Code: 02186)

ANNOUNCEMENT

PROGRESS OF PATENT LITIGATION IN RELATION TO

RIVASTIGMINE 1 DAY PATCH

The board of directors (the ''Board'') of Luye Pharma Group Ltd. (the ''Company'', together with its subsidiaries, the ''Group'') announces that the Court of Appeal for the district of Munich, Germany has decided to dismiss an appeal from Novartis AG as claimant in a patent infringement lawsuit regarding the Group's Rivastigmine 1 day patch, a product for treatment of Alzheimer's disease. Accordingly, Novartis AG has reimbursed the Group of relevant legal expenses.

We believe the court's decision discharges the Group from relevant risks of patent infringement and will allow the Group's product to penetrate more global markets. The Group will continue to deliver drug access and savings to patients and the overall healthcare system through developing, producing, marketing and selling innovative pharmaceutical products.

By Order of the Board

LUYE PHARMA GROUP LTD.

Liu Dian Bo

Chairman

Hong Kong, 28 December 2017

As at the date of this announcement, the executive directors of the Company are Mr. LIU Dian Bo, Mr. YANG Rong Bing, Mr. YUAN Hui Xian and Ms. ZHU Yuan Yuan; the non-executive Director of the Company is Mr. SONG Rui Lin; and the independent non-executive directors of the Company are Mr. ZHANG Hua Qiao, Professor LO Yuk Lam, Mr. LEUNG Man Kit and Mr. CHOY Sze Chung Jojo.