For Immediate Release

Eu Yan Sang’s 3QFY2010 net profit doubles to S$7.6 million

• 9MFY2010 net profit UP 51% to S$16.0 million, surpasses full year FY2009 net profit by 23%
• 3QFY2010 revenue up 11% to S$75.2 million
• Cash and cash equivalent increase S$8.6 million to S$35.9 million as at 31 March 2010

Singapore, 13 May 2010 – SGX mainboard-listed Eu Yan Sang International Ltd (“EYS”, “the Group” or “余仁生国际企业”), a progressive, global healthcare company with core businesses in Traditional Chinese Medicine (TCM) and integrative healthcare, doubled its 3QFY2010 net profit on-year to S$7.6 million for period ended 31 March 2010.

On a year to date basis, 9MFY2010 net profit of S$16.0 million already surpassed full year FY2009 net profit by 23%. Commenting on the sterling results, Mr Richard Eu (余义明), Group CEO said, “In nine months, we have already bettered our entire financial year 2009 performance in net profit. However, we will not rest on our laurels and will continue to strive to make such impressive figures sustainable in the long run.”

The higher net profit in 3QFY2010 came on the back of the 11% increase in revenue and generally lower expenses. Lower effective tax rates also helped to boost the net profit towards a one-fold year-on-year increase.

Net cash provided by operating activities of S$10.7 million in 3QFY2010 increased cash and cash equivalent to S$35.9 million, a net increase of S$8.6 million compared to the previous quarter.

Operations Review

Retail revenue surged 15% to S$62.9 million. Wholesale revenue dipped 6% to S$8.3 million because the Group focused on Lunar New Year sales during the quarter. Clinic revenue also saw a slight drop of 5% to S$3.5 million.

In geographical and local currency terms, Malaysia led the pack with a jump of 28% increase in 3QFY2010 revenue, in particular contributions from hamper sales. Sales in Hong Kong and Singapore also posted gains of 10% and 9% respectively. The strong sales in these three core countries in the quarter reflects the effectiveness of the Group’s pre-Lunar New Year promotions.

Outlook

The global economy has steadily recovered and sentiments have grown more positive, particularly in Asia. Mr Eu commented, “Since the beginning of the financial crisis in late 2008, we have focused on keeping costs down and maintaining healthy cash flow. As the economy recovers, we are now reaping the results of these measures. The Group has shown resilience in adverse economic conditions and is confident to end FY2010 with a better set of results than FY2009.”

About Eu Yan Sang International Limited (SGX:EYSI)

Listed on the Singapore Exchange, Eu Yan Sang International Limited (Eu Yan Sang) is a progressive healthcare company with its core focus in Traditional Chinese Medicine (TCM) and integrative healthcare. It is one of the largest TCM groups in South East Asia and a leader in adopting a scientific approach in the production of TCM products.

The Group has come a long way from its humble beginnings offering TCM remedies to tin mine coolies in Gopeng, Perak, Malaysia 130 years ago. Today, Eu Yan Sang is a household name in Asia with an unrivalled reputation as the leader in the TCM industry.

Eu Yan Sang’s ability to control the total supply chain – from the sourcing of its raw materials to the production and distribution of its products and the provision of treatments gives the Group an excellent competitive edge in the industry.

To give an added assurance to consumers, the Group developed the world’s first certification standard for TCM herbs, called the “Eu Yan Sang Good Agronomic Practices for Herbs (EYSGAP-Herbs) Certification”. This certification ensures world-leading standards are maintained at all stages of growing, processing and retailing of TCM herbs.

Eu Yan Sang is also developing a world first integrated online portal to keep track of TCM herbs throughout the whole value chain, known as “integrated Good Agronomic Practice for Traditional Chinese Medicine Electronic System” (iGATES).

Apart from retailing fine quality Chinese herbs and Chinese Proprietary Medicines, Eu Yan Sang also retails health foods and supplements. Currently, the Group offers more than 300 products under the Eu Yan Sang brand name and over 1,000 different types of Chinese herbs and other medicinal products. Manufacturing activities are carried out in two of its GMP-certified (Good Manufacturing Practice) factories located in Hong Kong and Malaysia.

As of 31 March 2010, Eu Yan Sang has an extensive distribution network comprising 160 retail outlets in China, Hong Kong, Macau, Malaysia and Singapore. Its products are available in drugstores, pharmacies, medical halls, supermarkets, convenience stores, hospitals, health clubs and spas worldwide. The Group also operates a chain of 19 TCM Clinics in Singapore and Malaysia, and two Integrative Medical Centres in Hong Kong.

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