LDC London Asia

RNS Number:0750X
London Asia Capital PLC
18 January 2006


For immediate release: 18 January 2006

                            LONDON ASIA CAPITAL PLC
                                ("London Asia")

        Investment in Chinese Life Science Business seeking Ofex listing

London Asia (LDC.L), the Greater China focused investment and merchant banking
group, is pleased to announce that it has completed an investment of #647,000
for a 51% holding in Chinese life science business China Biotech Healthcare Ltd
("China Biotech" or "the Company"). China Biotech achieved pro forma profits for
the year ended 30 June 2005 of #299,000, a 69% increase on the previous year.

The investment is via the issue of 3,282,234 London Asia ordinary 5p shares at
18p a share, and the payment of US$100,000 in cash. London Asia agreed its
investment in the company in July 2005, with the draw down of investment funds
subject to meeting various hurdles set at the time of investment by London Asia,
which have now been achieved by the Company. Application will be made for the
3,282,234 London Asia ordinary shares issued to be admitted to trading on AiM,
with admission expected on 24 January 2006.

London Asia Corporate Finance Ltd has been appointed Corporate Adviser to the
Company, with a view to taking it to listing on Ofex in the coming months.
London Asia directors Simon Littlewood and Victor Ng have been appointed to the
Company's Board.

China Biotech is a Jersey incorporated holding company for a profitable Chinese
life science business, Century Huanding (Tianjin) Biomedicine Technology Co. Ltd
("Huanding"). Huanding is a technology commercialisation company, which develops
and distributes healthcare products in partnership with leading Chinese
universities and research institutes. The partnership agreements typically allow
the Company to exploit research results, by either marketing sales of a final
product or selling the intellectual property rights, in exchange for financing
and advising on the commercialisation process, including clinical trials and
legal requirements.

The Company's core product is a unique, herbal derived bio-chromium supplement
for long-term diabetes treatment. China is ranked second in the world in the
incidence of diabetes and has an estimated 35 to 50 million people suffering
from the disease. The Company is also in the process of developing additional
products which are at various stages of development.

Mr Deng Haoyun, Chief Executive of China Biotech, said: "Our company is poised
to see considerable expansion, as we launch new products which have been under
development for the last few years, and expand the sales network of our existing
product in China. London Asia's investment will help fund that expansion. We are
delighted that London Asia has agreed to work with us to achieve a listing on
Ofex, which we hope will enable us to raise the necessary funds to further
expand our operations to meet growing demand within China, and finance expansion
into the European market."

Simon Littlewood, Chief Executive, London Asia Capital said: "China Biotech has
a strong management team, existing high quality products and a pipeline of new
products under development, which should enable it to expand rapidly in the fast
developing drugs market in China, and we look forward to working with the
Company to assist it in realising the opportunities in the industry."

For further information please visit www.londonasia.com or contact:

John West/Matt Ridsdale                  Simon Littlewood
Tavistock Communications                 London Asia Capital plc
Tel: 020 7920 3150                       Tel 020 7248 7578

Notes to Editors:

About China Biotech Healthcare Limited Ltd and diabetes in China

The Company's core product is a unique, herbal derived bio-chromium supplement
for long-term diabetes treatment, Yino TZK GTF Oral Solution, approved by the
Chinese Ministry Of Health ("MOH") and is already achieving good sales in China.
The role of chromium as an essential element in human nutrition, and as the
active constituent of the glucose tolerance factor (GTF), is well recognised.
GTF chromium has been found to make insulin work better in lowering blood sugar
levels, and helping to control cholesterol levels. The chromium abstracting
technology is patented and is believed to be the first GTF health food approved
by the MOH.

China, ranked second in the world in the incidence of diabetes, has an estimated
35 million to 50 million people suffering from diabetes. It is estimated that
this could reach as high as 100 million by 2025 if no effective measures are
taken to curb the epidemic. Diabetes is now the third highest cause of death in
the country (after cardiovascular disease and cancer) and it is estimated that
over US$ 1 billion is spent annually on the treatment.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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