Shanghai No.1 Pharmacy Co., Ltd. announced that it has received a verdict from Nanjing Intermediate People's Court with regarded to a lawsuit filed by Cengbei Sub-branch of Agricultural Bank of China against a Jiangsu-based industry development company and the Company as a guarantee. According to the verdict, the Company's holding of 1 million shares in China Haisum Engineering Co., Ltd. and related dividends will be frozen from April 14, 2008 to April 13, 2009 and its account capital of RMB 14 million in Industrial Securities will be frozen.