Development Agreement

Hutchison China Meditech Limited
06 November 2006





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



         Chi-Med Announces Development Agreement with Procter & Gamble

                      for the Discovery and Development of

                   New Active Ingredients for Beauty Products





London: Monday, 6 November 2006: Chi-Med today announces its wholly-owned drug 
R&D subsidiary Hutchison MediPharma Limited ('Hutchison MediPharma') has signed
a research and development agreement with the Procter & Gamble Company ('Procter
& Gamble'), P&G Beauty division to discover and develop new active ingredients
from Traditional Chinese Medicine and botanical sources for incorporation into
beauty care products.


The agreement is for two years, during which the Chi-Med group will screen its
collection of plant extracts against beauty care targets nominated by Procter &
Gamble and conduct natural product chemistry to characterise and optimise active
components that arise from the screenings.



Procter & Gamble will have the rights to commercialise any resulting products in
the area of beauty care. Procter & Gamble is a global market leader in Beauty
and competes in markets which comprise over $220 billion in global retail sales.
The Chi-Med group will be the exclusive supplier of active components for any
beauty care products developed as a result of the collaboration and will retain
the rights for any healthcare applications.



Mr. Christian Hogg, CEO of Chi-Med, said:



'The agreement is a recognition of the quality of Chi-Med's research and
development capabilities and illustrates the wide potential range of their
application. It will generate near-term income and offers the prospect of longer
term revenues from licensing and/or supplying active ingredients for beauty care
products and from their use outside beauty care.'



Chi-Med sees Traditional Chinese Medicine as a major, under-exploited reservoir
for the development of novel drugs for the global pharmaceutical market and for
developing new products for the global health and beauty  consumer markets.
Plants, particularly those that have been used as traditional medicines, have a
long-established record of efficacy and safety.



Dr. Samantha Du, Chief Scientific Officer and Executive Vice President of
Chi-Med said:



'Chi-Med has established truly world-class screening technologies and Procter &
Gamble is a global leader in the field of beauty care. We look forward to
working together to pursue products that may bring breakthrough benefits to
consumers. Plants, particularly those that have been used as traditional
medicines, represent an exciting opportunity for beauty care based on their
established human safety and efficacy profiles.'



                                      Ends



Enquiries


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

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



Notes to Editors



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 is focused on
researching, developing, manufacturing, and selling pharmaceuticals, health
supplements and other consumer health and personal care products derived from
Traditional Chinese Medicine and botanical ingredients. Its overall aim is to
draw on the untapped wealth of knowledge and history of usage in the Traditional
Chinese Medicine industry to develop products for the global market. The Company
has three complementary businesses: drug R&D, China healthcare and consumer
products.



Hutchison MediPharma is Chi-Med's wholly-owned drug research and development
company and has a team of around 100 scientists and staff focusing on botanical
drugs, semi-synthetic natural product drugs, and synthetic single chemical
entity drugs.  It currently has two candidates in clinical development in both
the US and China. HMPL-002, a radiosensitiser for head and neck and non-small
cell lung cancer ('NSCLC'), 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, for
treatment of inflammatory bowel diseases ('IBD'), including Crohn's Disease
('CD') and Ulcerative Colitis ('UC'), is in Phase II in the US and in proof of
concept in China.  Hutchison MediPharma also has a pipeline of single molecular
entity discovery projects in the auto-immune/inflammatory diseases and oncology
therapeutic areas which have shown activity against clinically validated
targets.



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.




                      This information is provided by RNS
            The company news service from the London Stock Exchange