Matrix Laboratories Limited is pleased to announce the strategic alliance with MCHEM Pharma (Group) Ltd. of China to gain access to the comparative advantage that China provides in the sourcing of pharmaceutical chemicals and intermediates.

Mr. N. Prasad, Chairman and CEO of Matrix Laboratories, and Mr. Mark Gao, Chairman of MCHEM Pharma Group, signed a Memorandum of Understanding (MoU) yesterday to this effect in Singapore.

The MoU provides for forming a strategic partnership between both the Companies. This arrangement will help Matrix to backward integrate into China for manufacture of intermediates and will help to consolidate its position as a major supplier of Active Pharmaceutical Ingredients (APIs) worldwide.

Based in Xiamen, on the East coast of China, MCHEM manufactures pharmaceutical products ranging from basic chemicals, intermediates, active pharmaceutical ingredients and finished dosage forms, apart from interest in distribution of pharmaceutical products in China. MCHEM group is a major supplier of finished dosage forms of Anti-AIDS products to the Chinese Government. MCHEM's finished dosage forms facility has been approved by the Medicines Control Council (MCC), South Africa. MCHEM group, with a sales turnover of USD 35 million in 2003, focuses on therapeutic categories such as Anti-AIDS, CNS, Cardio Vascular and Oncology.

"With this alliance, we are taking a decisive step to enter into China and this is strategically important to offer a vertically integrated and cost effective supply chain to our customers. This alliance provides both the companies with an opportunity to leverage on their comparative strengths, particularly in servicing the requirements of Anti Retro-virals (ARVs) for treatment of AIDS", said Mr. N. Prasad.

"This alliance will further strengthen business relationship between Matrix and MCHEM, and will go a long way in getting cost and quality leadership in chosen areas. Together, we hope to become a reliable and preferred partners to our global customers", said Mr. Mark Gao.