HONG KONG, CHINA - Media OutReach - 8 May 2019 - Jacobson Pharma Corporation Limited ("Jacobson Pharma" or the "Group"; Stock Code: 2633), aleading company engaging in the research, development, production, marketingand sale of generic drugs and proprietarymedicines, has been informed by Yunnan Baiyao Holdings Company Limited¹(雲南白藥控股有限公司) ("Baiyao Holdings") and Yunnan Baiyao Group Co.,Ltd.[1] (雲南白藥集團股份有限公司) ("Yunnan Baiyao Group") that Baiyao Holdings will be merged into andabsorbed by Yunnan Baiyao Group. Currently, Baiyao Holdings holds 200,000,000shares of Jacobson Pharma, representing approximately 9.92% of the total number ofthe Group's issued shares. Upon completion of the merger, such 200,000,000 sharesare to be held by Yunnan Baiyao Group as the merged entity. Yunnan Baiyao Groupis also to actively accelerate exploring potential business cooperation as statedin the letter of intent previously agreed with Jacobson Pharma.

Yunnan Baiyao Group is a renowned andrespected brand and a leading company which has developed 16 pharmaceuticaldosage forms with more than 370products. The company initiated the merger proposal in October 2018 which wasapproved by the China Securities Regulatory Commission in late April 2019,approving it to issue shares as it absorbs Yunnan Baiyao. After the completionof the merger, Yunnan Baiyao Group's operating income isexpected to grow to more than RMB27 billion. With itsstrong financial strength,Yunnan Baiyao Group could leverage its brand, channel and medical resources through in-licensing, strategic cooperation, new productdevelopment as well as mergers and acquisitions to fuelbusiness expansion and reinforce competitive strengths.

Jacobson Pharma has pre-eminentleadership in generics, specialty drugs and proprietary medicines in the industry. Backed by avertically-integrated value chain and advanced production facilities, and bolstered by its robust product portfolio, the Group has one of the most extensive sales and distribution networkscovering both the private and public market sectors in Hong Kong. Meanwhile, withHong Kong as its base, Jacobson Pharma has set to expandits regional platform and is poised tostrategically collaborate with reputable manufacturers globally for establishingfootholds in Asia Pacific including China, Korea, Japan,Taiwan, Singapore, Malaysia, Cambodia, Myanmar, Thailand and Vietnam.

Jacobson Pharma has previouslyentered into a letter of intent with Baiyao Holdings pursuant to which theparties agreed to conduct feasibility studies on possible business cooperationand other collaborations. In the future, the Group will continue to actively examine such further possibilities withBaiyao Holdings tobroaden and deepen its market coverage in China andAsia Pacific in forginga competitive regional commercial platform aiming to  deliver sustainable values for shareholders.

About Jacobson Pharma Corporation Limited (雅各臣科研製藥有限公司；Stock Code: 2633)

JacobsonPharma is the largest generic drug company in Hong Kong with over 30% share ofthe total generic drug market for each year since 2012. The Group's proprietarymedicines, notably being Po Chai Pills (「保濟丸」),Tong Tai Chung Woodlok Oil (「唐太宗活絡油」), Ho ChaiKung Tji Thung San (「何濟公止痛退熱散」), Contractubex Scar Gel (「秀碧除疤膏」) Doan's Ointment (「兜安氏藥膏」), Flying Eagle Wood Lok Medicated Oil (「飛鷹活絡油」), Saplingtan (「十靈丹」), Shiling Oil (「十靈油」)and Col-gan Tablet (「傷風克」) have been widely recognized by the market. Jacobson Pharma has been a constituent of MSCI Hong Kong Micro Cap Index since 1 June2017. For more details about Jacobson Pharma, please visit the Group's website:https://www.jacobsonpharma.com