Agreement with Eli Lilly

Hutchison China Meditech Limited
20 August 2007


                  Hutchison China MediTech Limited ('Chi-Med')
                                   (AIM: HCM)


           Chi-Med Announces Drug Discovery and Development Agreement

                           with Eli Lilly and Company



London, Monday, 20 August 2007: Chi-Med, the Hutchison Whampoa backed
pharmaceutical and healthcare Group, today announces that its wholly-owned drug
R&D subsidiary, Hutchison MediPharma R&D Limited ('Hutchison MediPharma'), has
entered into a drug discovery and development agreement with Eli Lilly and
Company ('Lilly') (NYSE: LLY).


Under the agreement, Lilly and Hutchison MediPharma will initially collaborate
on the discovery and development of pharmaceutical agents focused on targets in
oncology and inflammation. Hutchison MediPharma will assume primary
responsibility for the discovery phase activities necessary for the
identification and selection of several clinical candidates and Lilly will be
responsible for ongoing technical advice and the subsequent Investigational New
Drug filing and clinical development of these candidates. The research
partnership leverages the strengths and expertise of the two companies while
taking advantage of the unique opportunities available in China to expedite the
drug discovery process, and reduce overall cost.


Hutchison MediPharma will receive from Lilly an upfront payment and annual R&D
support fees, as well as potential discovery and development milestone payments
depending on the candidate of up to a range of US$20 million to US$29 million
per candidate, and potential royalties on worldwide sales of any commercialised
products resulting from the collaboration. In the event that Lilly exercises its
option not to move forward with a candidate, Hutchison MediPharma will itself be
able to take the findings and continue with the candidate. Detailed financial
terms are not disclosed.


Dr. Samantha Du, Chief Scientific Officer for Chi-Med and Managing Director of
Hutchison MediPharma Limited, commented on the collaboration agreement: 'This is
a landmark deal for both Hutchison MediPharma and Chi-Med. At Hutchison
MediPharma, we aim to discover and develop innovative medicines to meet global
market needs with big Pharma quality, biotech speed and China's attractive cost
base. We have built a strong drug discovery and development platform focused on
oncology and auto-immune indications in the past few years. Today's announcement
further validates our business model and capabilities. Lilly is a recognised
global leader in new drug discovery and development. We are proud to have the
opportunity to collaborate with Lilly.'


'Lilly is pleased to partner with Hutchison MediPharma on this groundbreaking
research initiative', said Dr. William W. Chin, M.D., Vice President of
discovery research and clinical investigation for Lilly. 'Hutchison MediPharma
is clearly a leader in China's R&D arena. They have demonstrated their R&D
quality through a successful pilot program conducted with Lilly. We believe
Hutchison MediPharma has the strategic interest and capabilities to advance
these Lilly molecules, and we are excited to explore this innovative research
collaboration model with them.'





                                      Ends



Enquiries

Chi-Med                           Telephone: [phone]
Christian Hogg, CEO

Citigate Dewe Rogerson            Telephone: [phone]
Anthony Carlisle                  [phone]
Yvonne Alexander                  [phone]



About Chi-Med


Chi-Med is the holding company of a pharmaceutical and healthcare group based
primarily in China and was admitted to trading on the Alternative Investment
Market of the London Stock Exchange in May 2006. Chi-Med focuses on research,
development, manufacture, and sale of pharmaceuticals, health supplements and
other consumer and personal care products derived from Traditional Chinese
Medicine and botanical ingredients.


Hutchison MediPharma is Chi-Med's wholly-owned drug R&D subsidiary and, through
Chi-Med's wholly-owned subsidiary Hutchison MediPharma Limited ('HMPL') in
Shanghai, has at its disposal a team of around 140 scientists and staff focusing
on discovery and development of botanical drugs, semi-synthetic natural product
drugs, and synthetic single chemical entity drugs. HMPL currently has two
candidates in clinical development in both the US and China. HMPL-002, a
radiosensitiser for head and neck cancer and non-small cell lung cancer, is in
Phase I/II in the US and in proof-of-concept in China. HMPL-004, an inhibitor to
a group of inflammatory cytokines, has completed the Phase II proof-of-concept
study in Ulcerative Colitis and is in Phase II studies in Crohn's disease in the
US. HMPL also has a pipeline of single new chemical entity discovery projects in
auto-immune/inflammatory diseases and oncology therapeutic areas.


Chi-Med is majority owned by Hutchison Whampoa Limited, an international
corporation listed on the Main Board of The Stock Exchange of Hong Kong Limited.



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