HD Biosciences Announces Completion of Series A Financing

Business Editors/Health/Medical Writers

SHANGHAI, China--(BUSINESS WIRE)--Aug. 7, 2008--HD Biosciences

Inc., a China-based biology contract research organization (CRO) today

announced the closing of its Series A financing. The current round was

co-led by Morningside Venture and Lilly Asian Ventures and syndicated

with Pfizer Venture Investments.

"We are pleased to have such an outstanding group of investors

supporting the ongoing effort to build a world-class biology CRO

serving the pharmaceutical and biotechnology industries," said Xuehai

Tan, Ph.D., president and chief executive officer of HD Biosciences.

"As chemistry outsourcing increasingly shifts to China, we see a

growing demand for in vitro screening and in vivo study services in

China. The investment by Morningside, Lilly Asian Ventures and Pfizer

Venture Investments enables the company to capitalize on this trend

with a service offering that is unrivaled both in breadth and

quality."

The company intends to use the proceeds of this financing to fund

the expansion of its high throughput screening program and build new

capabilities in in vivo biology and DMPK bio-analytical services.

"Morningside is very pleased to lead the investment in HD

Bioscience, joined by Lilly Asia Ventures and Pfizer Ventures." said

Dr. Gerald Chan, chairman of Morningside Venture. "At a time when

multinational biopharmaceutical companies are seeking increased R&D

capacity in Asia, HD Bioscience is emerging as a leading contract

research organization with expertise in customized biology services.

The company, led by a team of highly trained scientific professionals,

is well equipped to lead biotechnology development in China and meet

industry needs worldwide."

HD Biosciences is headquartered in Shanghai Zhangjiang Hi-Tech

Park, China.

About HD Biosciences

HD Biosciences is a leading China-based biology CRO company.

Founded in 2002, HDB has emerged as a leader in preclinical

pharmaceutical contract research business in China in recent years.

HDB specializes in conducting assay development and high throughput

screening services for pharmaceutical and biotech clients and has

provided services to clients including 5 out of the 10 world's largest

multinational pharmaceutical companies.

Additional information regarding HDB can be found at

http://www.hdbiosciences.com

About Morningside Venture

Morningside Group is a diversified private investment group

founded in 1986 by the Chan family of Hong Kong. Morningside Group

invests in private equity and venture capital opportunities in North

America, Europe and Asia Pacific. Since 1992, China has increasingly

become a significant part of the group's investment activities. In

China, Morningside was one of the earliest institutional investors in

China's internet industry and in recent years has been a leader in

China's emerging biotechnology sector. Morningside also has

investments in China's machinery manufacturing, high-tech, media,

telecommunications, and education sectors.

Additional information regarding Morningside Venture can be found

at http://www.morningside.com

About Lilly Asian Ventures

Lilly Asian Ventures is the Asian venture capital arm of Eli Lilly

and Company, a leading innovation-driven pharmaceutical company. Lilly

Asian Ventures invests in promising life science companies with strong

management teams and innovative technology and/or business models. It

currently has $100M under management.

Additional information regarding Lilly Asian Ventures can be found

at http://www.lillyasianventures.com

About Pfizer Venture Investments

Pfizer Venture Investments (PVI) is the venture capital arm of

Pfizer Inc., the world's largest research-based biomedical and

pharmaceutical company. PVI invests in companies that are both

strategic and financially attractive for Pfizer.

--30--DB/ny*

CONTACT: HD Biosciences, Inc., Shanghai, China

Wen Chen, (+86) 21-58558330

Chief Operating Officer