Taihua plc

("Taihua" or the "Company")

Change of Substantial Shareholder

Change of Director

Share Sale

On 8 December 2014, Professor Liyi Chen transferred 23,703,826 ordinary shares of 1p each in the capital of the Company to Mr Mingjian Yin at the consideration of £782,226.26 (being 3.3p per ordinary share). Following the transfer, Mr Yin now holds 29.0% of the entire issued share capital of the Company, and 29.0% of the total voting rights of the Company and Professor Chen retains 6.92% of the entire issued share capital of the Company and 6.92% of the total voting rights of the Company.

Board Changes

On the same date, Professor Liyi Chen resigned as a director of the Company and Mr Mingjian Yin, aged 31, was appointed as a director of the Company

Mr Yin, is a director of Beijing Jinsanhuan Textile Import & Export Co., Limited . He is not and has not been in the last 5 years a director or partner of any other company or partnership. Mr Yin has connections with some pharmaceutical distributors in China and has been looking for an opportunity to invest in the pharmaceutical and TCM sector for some time. This represents his first step in this area.

Nick Lyth, Non-Executive Chairman of the Company commented as follows:

"Firstly I would like to thank Professor Chen for the work that he has done in guiding Taihua from IPO to this time. His help has been invaluable and we wish him well in the future.

I would like to welcome Mr Yin to the Board of Taihua plc. The fact that he has relationships with some pharmaceutical distributors in China means that Taihua is well placed to benefit from his connections. We look forward to working with him in the future".

There is no further information required to be disclosed pursuant to the AIM Rule 17 or Schedule 2 paragraph (g) in the AIM Rules for Companies.

For more information please contact:

Nicholas Lyth, Taihua plc

0776 990 6686

Katy Mitchell, WH Ireland Limited

+44 161 832 2174