Relationship with
Hutchison Whampoa Limited ("HWL")

HWL is an international corporation listed on the Main Board of the Hong Kong Stock Exchange that had turnover of approximately US$ 40 billion in 2007. As at 31 December 2007, HWL had over 230,000 employees in 56 countries worldwide in a diverse array of holdings which included:

• the world's largest health and beauty retailing business, by number of stores, with over 7,900 stores in 33 countries;
• the world's busiest independently owned container terminal operator, handling 66.3 million twenty-foot equivalent units (TEUs) in 2007, in 292 berths, in 47 ports, in 24 countries;
• a leading global telecommunications and data services business serving over 25 million customers in 25 countries;
• a major property and hotel development business in Asia and Europe; and
• a major infrastructure business which, includes an approximately 85 per cent holding in Cheung Kong Infrastructure Holdings Limited, substantial interests in Hong Kong Electric Holdings Limited, Husky Energy Inc, the Toronto listed Canadian-based energy company, and multiple power-generation and distribution, water distribution, and toll-road operations around the world.

During the past 27 years, HWL has invested in numerous Chinese projects including but not limited to:

• a joint venture between HWL and Procter & Gamble for distribution of consumer products in China;
• multiple container terminals;
• China Aircraft Services Ltd. and GAMECO, one of China's few Federal Aviation Administration-certified aircraft maintenance companies;
• a joint venture with Beijing Tourism Group to develop hotel and tourist businesses in China including the Great Wall Sheraton Hotel in Beijing;
• multiple hotel projects;
• infrastructure projects such as the Shantou toll road and bay bridge;
• logistics and distribution ventures such as a China joint venture with Tibbett & Britten;
• Shanghai White Cat, one of east China's largest household consumer products groups;
• a joint venture in Dalian Ore Terminals;
• Hutchison Optel, a manufacturer of telecommunications equipment and;
• numerous commercial and residential property development projects.

The Directors believe that Chi-Med will benefit from a close ongoing relationship with its major shareholder and that the strong brand image of HWL has contributed significantly to the marketing and brand building efforts of Chi-Med to date. Chi-Med ’s association with HWL has: (i) enabled it to attract high-profile partners for joint ventures, marketing and distribution, and other collaborative product development arrangements at preferential valuations; (ii) enabled it to attract and retain high-calibre staff at all levels of its management, research and development, and core sales teams; and (iii) helped Chi-Med build its business and supported its development as a modern corporate organisation. The Directors believe that an ongoing relationship with HWL will give Chi-Med access to experience, skills and relationships which it might not otherwise have.