China Traditional Chinese Med Hldg CoLtd : APPOINTMENT OF NON-EXECUTIVE DIRECTOR

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CHINA TRADITIONAL CHINESE MEDICINE HOLDINGS CO. LIMITED

中國中藥控股有限公司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 570) APPOINTMENT OF NON-EXECUTIVE DIRECTOR

The board of directors (the "Board") of China Traditional Chinese Medicine Holdings Co. Limited (the "Company") wishes to announce that Ms. HUANG He ("Ms. HUANG") has been appointed as a non- executive director of the Company with effect from 23 August 2016.

Ms. HUANG, aged 37, graduated from Renmin University of China with a bachelor degree in International Accounting in July 2001 and a master degree in Accounting in July 2004. Ms. HUANG is an auditor and a senior human resources officer. She was the accountant of the finance department, the vice manager of the operation and audit department and the manager of the strategic planning department of Traditional & Herbal Medicine Company from July 2004 to December 2007; the manager of the audit department, the employee supervisor of the board of supervisors and the manager of the human resources department of China National Corporation of Traditional and Herbal Medicine from January 2008 to December 2013; the director of human resources and the manager of the human resources department of China National Traditional Chinese Medicine Corporation from January 2014 to January 2015. Currently, Ms. HUANG is the director of operations and the manager of the human resources department of China National Traditional Chinese Medicine Corporation.

Save as disclosed above, Ms. HUANG has not held directorship in other listed companies in the past three years or any other position within the Company and other members of the Group.

As at the date of this announcement, Ms. HUANG has no interest in the shares, relevant shares or debentures of the Company and/or its associates within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Save as disclosed above, she has no relationship with any other directors, senior management, substantial shareholders or controlling shareholders of the Company (as defined under the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules")).

Ms. HUANG has entered into an appointment letter with the Company in relation to her appointment for an initial term of two years. She is also subject to retirement and re-election at the next following general meeting of the Company and thereafter is subject to retirement by rotation and re-election in accordance with the articles of association of the Company. The director's fee of Ms. HUANG was determined with reference to her duties and responsibilities with the Company, the Company's performance and the prevailing market condition. For the year ended 31 December 2016, it is expected that Ms. HUANG will not receive any director's fee.

Save as disclosed above, there is no other matter that need to be brought to the attention of the shareholders of the Company in relation to her appointment and any other information required to be disclosed pursuant to any of the requirements of rule 13.51(2) of the Listing Rules.

The Board would like to warmly welcome Ms. HUANG to join the Company

By Order of the Board

China Traditional Chinese Medicine Holdings Co. Limited WU Xian

Chairman

Hong Kong, 23 August 2016

As at the date of this announcement, the Board comprises eleven directors, of which Mr. WU Xian, Mr. YANG Bin and Mr. WANG Xiaochun are executive directors; Mr. LIU Cunzhou, Mr. DONG Zenghe, Mr. ZHAO Dongji and Ms. HUANG He are non-executive directors; and Mr. ZHOU Bajun, Mr. XIE Rong, Mr. YU Tze Shan Hailson and Mr. LO Wing Yat are independent non-executive directors.