The board of directors of Shandong Luoxin Pharmacy Stock Co. Ltd. announced that Professor Chen Yun Zhen has been appointed as an independent non-executive Director and a member of the audit committee, remuneration committee and nomination committee of the Company with effect from December 31, 2102. Prof. Chen has been appointed as an independent non-executive Director to fill a casual vacancy on the Board.

Prof. Chen will hold office until the next Annual General Meeting of the company and shall then be eligible for re-election. Prof. Chen indicated that he will offer himself for re-election as an independent non- executive Director at the next AGM. Mr. Liu Yuxin, one of the non-executive Directors, was nominated by Pingyi County People's Hospital, a promoter and initial management shareholders of the company, as non-executive Director in May 2001.

As Pingyi People Hospital is no longer a shareholder of the company, Mr. Lin Yuxin resigned as non- executive Director with effective from December 3, 2012. Prof. Chen Yun Zhen is the supervisor of PhD candidates, professor and supervising doctor of Shandong University. Currently Prof. Chen is the deputy supervisor of Orthopedic Department, supervisor of Orthopedic Trauma Department and supervisor of Spinal Column and Spinal Cord Injury Research Centre of Qilu Hospital.