HONG KONG, CHINA -�Media OutReach�- 8 May 2019 - Jacobson Pharma Corporation Limited ("Jacobson Pharma" or the "Group"; Stock Code: 2633), a
leading company engaging in the research, development, production, marketing
and sale of generic drugs and proprietary
medicines, has been informed by Yunnan Baiyao Holdings Company Limited¹
(??????????) ("Baiyao Holdings") and Yunnan Baiyao Group Co.,Ltd.[1] (????????????) ("Yunnan Baiyao Group") that Baiyao Holdings will be merged into and
absorbed by Yunnan Baiyao Group. Currently, Baiyao Holdings holds 200,000,000
shares of Jacobson Pharma, representing approximately 9.92% of the total number of
the Group's issued shares. Upon completion of the merger, such 200,000,000 shares
are to be held by Yunnan Baiyao Group as the merged entity. Yunnan Baiyao Group
is also to actively accelerate exploring potential business cooperation as stated
in the letter of intent previously agreed with Jacobson Pharma.

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Yunnan Baiyao Group is a renowned and
respected brand and a leading company which has developed 16 pharmaceutical
dosage forms with more than 370
products. The company initiated the merger proposal in October 2018 which was
approved by the China Securities Regulatory Commission in late April 2019,
approving it to issue shares as it absorbs Yunnan Baiyao. After the completion
of the merger, Yunnan Baiyao Group's operating income is
expected to grow to more than RMB27 billion. With its
strong financial strength,
Yunnan Baiyao Group could leverage its brand, channel and medical resources through in-licensing, strategic cooperation, new product
development as well as mergers and acquisitions to fuel
business expansion and reinforce competitive strengths.

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Jacobson Pharma has pre-eminent
leadership in generics, specialty drugs and proprietary medicines in the industry. Backed by a
vertically-integrated value chain and advanced production facilities, and bolstered by its robust product portfolio, the Group has one of the most extensive sales and distribution networks
covering both the private and public market sectors in Hong Kong. Meanwhile, with
Hong Kong as its base, Jacobson Pharma has set to expand
its regional platform and is poised to
strategically collaborate with reputable manufacturers globally for establishing
footholds in Asia Pacific including China, Korea, Japan,
Taiwan, Singapore, Malaysia, Cambodia, Myanmar, Thailand and Vietnam.

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Jacobson Pharma has previously
entered into a letter of intent with Baiyao Holdings pursuant to which the
parties agreed to conduct feasibility studies on possible business cooperation
and other collaborations. In the future, the Group will continue to actively examine such further possibilities with
Baiyao Holdings to
broaden and deepen its market coverage in China and
Asia Pacific in forging
a competitive regional commercial platform aiming to �deliver sustainable values for shareholders.

About Jacobson Pharma Corporation Limited (????????????Stock Code: 2633)

Jacobson
Pharma is the largest generic drug company in Hong Kong with over 30% share of
the total generic drug market for each year since 2012. The Group's proprietary
medicines, notably being Po Chai Pills (?????),
Tong Tai Chung Woodlok Oil (????????), Ho Chai
Kung Tji Thung San (??????????), Contractubex Scar Gel (???????) Doan's Ointment (???????), Flying Eagle Wood Lok Medicated Oil (???????), Saplingtan (?????), Shiling Oil (?????)
and Col-gan Tablet (?????) have been widely recognized by the market. Jacobson Pharma has been a constituent of MSCI Hong Kong Micro Cap Index since 1 June
2017. For more details about Jacobson Pharma, please visit the Group's website:
http://www.jacobsonpharma.com