<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>sinovacexh99_1.txt
<DESCRIPTION>SINOVAC BIOTECH 6K, PRESS RELEASE 8.9.04
<TEXT>






EXHIBIT 99.1
------------


                              SINOVAC BIOTECH LTD.
                              --------------------
            UPDATES ON PHASE I HUMAN CLINICAL TESTING OF SARS VACCINE
            ---------------------------------------------------------

ALL 36 SUBJECTS HAVE NOW BEEN INOCULATED WITH EITHER SARS VACCINE OR PLACEBO AND
ARE IN GOOD HEALTH CONDITION

BEIJING, 9 August, 2004 - Sinovac Biotech Ltd. ("Sinovac") (NASD OTC-BB:  SNVBF)
announces  that all 36  subjects  of the  Phase I human  clinical  trial for its
inactivated  SARS vaccine have now been  vaccinated  with either SARS vaccine or
placebo.  The  final 12  subjects  in the  second  group of 18  volunteers  have
received  the  vaccination,  6 subjects  on July 28 and 6 subjects  on August 4,
2004. No adverse side-effects have been observed. As previously  announced,  the
first 6 of this second group of 18  volunteers  in the SARS  vaccine  trial were
injected on July 15, 2004. These subjects  together comprise the second group of
18  volunteers,  which has been injected with either the  high-dosage  (32 su/mL
antigen) SARS vaccine or a placebo.

According to Professor Lin Jiangtao,  head of the Respiratory Medical Department
with the China-Japan  Friendship Hospital in Beijing,  who chairs the trial, the
first  group of 18 people who have been  inoculated  with  low-dosage  (16 su/mL
antigen) SARS vaccine and the second group of 18 who have been  inoculated  with
high-dosage (32 su/mL antigen) vaccine have not experienced any adverse reaction
and are all in good health condition.

The two-dose  immunization  schedule has been completed for the initial group of
18 volunteers who received low-dosage SARS vaccine or placebo.  The second group
of 18 volunteers receiving high-dosage of SARS vaccine have received their first
inoculation.  Each  sub-group of 6 volunteers is scheduled to receive the second
inoculation 28 days after the first inoculation dates noted above.

The first phase of human  testing will  determine if the vaccine is safe for the
human body. During the Phase I clinical trial,  Sinovac will provide  continuous
updates on the status of the trial and the health  condition of the  volunteers.
The ultimate aim of the vaccine will be to provoke the body's immune system into
action, so that it can destroy the SARS virus if infected.

Also, and of particular  note,  antibody  levels induced by the vaccine are also
being  tested for the duration of the Phase I clinical  trial.  This testing has
not  previously  been  announced.  The  ability of these  antibodies  to prevent
infection from SARS will not be tested in this trial.

Sinovac  is the only  company  in China,  and  indeed  the  world,  to have been
approved to conduct human clinical trials of a SARS vaccine.

In 2003, SARS had a devastating  impact on the economy of China,  many Southeast
Asian nations,  and even parts of North America. A new, widespread SARS outbreak
could have a similar  effect on the economies of many  nations,  just when these
economies are building strength. The importance and need to develop an effective
SARS vaccine is thus a paramount concern for world health authorities.  The SARS
global outbreak of 2003 was eventually  contained;  however, it is expected that
the disease could re-emerge in an annual cycle similar to the common flu.

Clinical Trial Design
---------------------

There  are 36  healthy  volunteers  aged from 21 to 40 that  were  selected  for
clinical testing,  who were divided into four groups.  Twenty-four subjects (two
groups of 12 depending  on dosage  level) have  received  the  vaccine,  and the
twelve others (two groups of 6) have received the placebo. Each subject receives
two shots.  The first shot was on day 0 followed  by 28-day  observation  of the
subject.  The  second  shot is given  after the  initial  28 day period and each
subject will be observed until day 210, the phase I trial end-date.

The volunteers are observed for reaction every day for the first three days, and
then less frequently  throughout the whole 210-day observation process.  Neither
the  volunteers  nor the  administering  doctors  were  informed  of whether the
injection was a vaccine or a placebo.




<PAGE>






Regulatory Approval Process
---------------------------

The drug approval process regulated by the State Drug  Administration  (SFDA) in
China is  similar to the one  regulated  by the FDA in the  United  States.  The
process  involves  pre-clinical in vitro  laboratory and in vivo animal testing;
IND study  (Investigational  New Drug); human clinical Phases I, II and III; New
Drug Application; and finally Marketing Approval for sale.

The SFDA has stated  that it is  fast-tracking  the drug  approval  process  for
Sinovac's potential SARS vaccine.

Pre-clinical  trials on rhesus and macaque monkeys showed Sinovac's  vaccine was
effective in preventing  infection.  The monkeys that were  inoculated  with the
vaccine  experienced  no serious  side  effects  after they were  exposed to the
virus.

Immune response was invoked by Sinovac's vaccine in all animal models. No immune
enhancement was observed in any of the pre-clinical testing.

Clinical  protocols  for the testing of  Sinovac's  potential  SARS vaccine were
developed in accordance with stringent newly established worldwide protocols for
the conduct of SARS vaccine clinical  trials.  The protocols were also developed
with the cooperation of various world health authorities, as well as the Chinese
FDA (SFDA),  China Centre of Disease  Control,  and the China  Medical  Academic
College.

The ultimate aim of the vaccine will be to provoke the body's immune system into
action, so that it can destroy the SARS virus if infected.

The first phase of human  testing will  determine if the vaccine is safe for the
human body. During and after the Phase I trial, analysis will be conducted.  The
summary  report  will be sent to the  SFDA  for its  review  and if the  vaccine
receives SFDA approval,  then it will proceed into Phase II clinical  trials.  A
second  phase of  clinical  testing  would have more  participants  from a wider
demographic range.

ABOUT SARS
----------

SARS, a viral respiratory illness caused by a coronavirus, was first reported in
Asia in February 2003, and over the following few months,  the illness spread to
more than two dozen countries in North America, South America, Europe, and Asia.
According to the World Health Organization,  during the SARS outbreak of 2003, a
total of 8,098 people worldwide became sick with SARS; of these, 774 died.

ABOUT SINOVAC BIOTECH LTD.
--------------------------

Sinovac    Biotech   Ltd.    specializes    in   the   research,    development,
commercialization,  and sales of human vaccines for infectious illnesses such as
Hepatitis A and Hepatitis B, influenza and "SARS". Sinovac is one of the leading
emerging  biotechnology  companies in China. Working closely with Chinese public
health  officials,  Sinovac  focuses on  manufacturing  and marketing  human-use
vaccines and related  products,  and currently markets its vaccine for Hepatitis
A. Sinovac is currently  the only company in the world to have  commenced  human
clinical trials for a vaccine to prevent SARS.

For further  information  please refer to the Company's  filings with the SEC at
www.sec.gov or refer to Sinovac's website at www.sinovac.com.
-----------                                  ----------------

Contact: Sinovac Investor Relations at (888) 888 8312 or (604) 684-5990 or email
to info@sinovac.com.
   ----------------




THIS NEWS RELEASE MAY INCLUDE  FORWARD-LOOKING  STATEMENTS WITHIN THE MEANING OF
SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION
21E OF THE UNITED STATES  SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED,  WITH
RESPECT  TO  ACHIEVING  CORPORATE  OBJECTIVES,   DEVELOPING  ADDITIONAL  PROJECT
INTERESTS,   SINOVAC'S   ANALYSIS  OF   OPPORTUNITIES  IN  THE  ACQUISITION  AND




<PAGE>






DEVELOPMENT  OF VARIOUS  PROJECT  INTERESTS  AND CERTAIN  OTHER  MATTERS.  THESE
STATEMENTS  ARE MADE UNDER THE "SAFE  HARBOR"  PROVISIONS  OF THE UNITED  STATES
PRIVATE  SECURITIES  LITIGATION  REFORM  ACT  OF  1995  AND  INVOLVE  RISKS  AND
UNCERTAINTIES  WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER  MATERIALLY FROM THOSE
IN THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.





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