Related Party Transaction

Hutchison China Meditech Limited
17 January 2007



For Immediate Release

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

                           Related Party Transaction

          Chi-Med formalises China Sales and Distribution Arrangements

London: Wednesday, 17 January 2007: Chi-Med today announces that its joint
venture China health supplements business, Hutchison Healthcare Limited ('HHL'),
has entered into a distribution agreement (the 'Agreement') with Hutchison
Whampoa (China) Commerce Limited ('HWCCL') to formalise the existing
arrangements pursuant to which HHL supplies, and HWCCL buys and distributes, Zhi
Ling Tong products (the 'Products') in various provinces in China. The
Agreement, which relates to distribution arrangements previously carried out
under an agreement referred to in Chi-Med's Admission Document, is for a term
commencing with effect from 4 January 2006 to 31 December 2007 (the 'Term').

The aggregate amount of net sales of the Products (less rebate) under the
Agreement accumulated up to the end of December 2006 reached RMB16.1 million
(approximately US$2.02 million).

HWCCL is also appointed as an agent of the Products in various provinces in
China during the Term. The Agreement contains typical conditions for a
transaction of this type, including rebates, credit line and credit period, as
well as the sharing of certain marketing expenses.

HHL is based in Guangzhou, Guangdong Province, China and researches, develops,
manufactures and sells Western and Traditional Chinese Medicine ('TCM') health
supplement products. Zhi Ling Tong capsules are made from pure docosahexaenoic
acid ('DHA'), an Omega-3 fatty acid extracted from algae, and are designed to
promote the brain and retinal development of babies and young children. Zhi Ling
Tong calcium lactate powder is designed as a calcium supplement for babies and
young children.

HWCCL is an indirect wholly-owned subsidiary of Hutchison Whampoa (China)
Limited, which holds an effective interest of approximately 72% of the issued
and outstanding securities of Chi-Med. Chi-Med owns an effective interest of
approximately 67.97% of the registered capital of HHL. As such, the transaction
is classified as a related party transaction under the Rules of the Alternative
Investment Market of the London Stock Exchange, on which Chi-Med is admitted to
trade. The directors of Chi-Med consider, having consulted Lazard & Co. Limited,
Chi-Med's Nominated Adviser, that the terms of the Agreement are fair and
reasonable insofar as Chi-Med's shareholders are concerned.

                                      Ends

Enquiries

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

Citigate Dewe Rogerson            Telephone: [phone]
Anthony Carlisle                  [phone]
Chris Gardner                     [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 is focused on
researching, developing, manufacturing, and selling pharmaceuticals, health
supplements and other consumer health and personal care products derived from
Traditional Chinese Medicine ('TCM') and botanical ingredients. Its overall aim
is to draw on the untapped wealth of knowledge and history of usage in the TCM
industry to develop products for the global market. Chi-Med has three
complementary businesses: drug R&D, China healthcare and consumer products.

Chi-Med engages in the research and development, manufacture and sale of Western
and TCM health supplement products through its subsidiary Hutchison Healthcare
Limited ('HHL'). Many of the formulations of HHL's supplement products are based
on World Health Organisation's recommended daily intake of various active
ingredients. HHL's two major products are Nao Ling Tong capsules and Zhi Ling
Tong capsules. Nao Ling Tong is made from Omega-3 fatty acids with a high DHA/
EPA ratio and is used to improve memory by supplementing DHA levels in the
brain. Zhi Ling Tong is made from pure DHA, an Omega-3 fatty acid extracted from
algae, and is used to promote the brain and retinal development of babies and
young children.

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