LHG - Litha Healthcare Group Limited - The Biovac Institute, a subsidiary of

LHG - Litha Healthcare Group Limited - The Biovac Institute, a subsidiary of    
Litha Healthcare Group Limited, extends its Final Supply Agreement (FSA) with   
The Department of Health for another 6 years                                    
LITHA HEALTHCARE GROUP LIMITED                                                  
(Formerly known as Myriad Medical Holdings Limited)                             
(Incorporated in the Republic of South Africa)                                  
(Registration Number 2006/006371/06)                                            
Share code: LHG ISIN: ZAE000085825                                              
("Litha Healthcare Group" or the "company")                                     
THE BIOVAC INSTITUTE, A SUBSIDIARY OF LITHA HEALTHCARE GROUP LIMITED, EXTENDS   
ITS FINAL SUPPLY AGREEMENT (FSA) WITH THE DEPARTMENT OF HEALTH FOR ANOTHER 6    
YEARS                                                                           
The Biovac Institute (TBI), a subsidiary of Litha Group`s Biotechnology         
division, has been a strategic equity partner to the South African Department of
Health (DoH) through a Public Private Partnership (PPP) since 2003.             
The initial supply agreement entered into in 2003 enabled the PPP to import and 
supply all paediatric vaccines to the South African Government until 31 December
2010.                                                                           
Following a review of the PPP, The Biovac Institute (TBI) has been awarded an   
extension of the FSA for the supply of paediatric vaccines to the South African 
Government, effective from 1 January 2011 to 31 December 2016(the supply        
period).                                                                        
This ensures that TBI continues supplying paediatric vaccines to the South      
African Government, for the duration of the supply period, whilst the company   
builds its local vaccine manufacturing capacity.                                
The extension of the FSA is underpinned by the following objectives as          
originally agreed to with Government and TBI:                                   
-    To ensure the development of domestic capacity in vaccine production       
-    To establish an economically viable vaccine producer                       
-    The development and retention of local vaccine production related skills   
-    To create a competitive platform from which a domestic producer of human   
vaccines and related medical biotechnology products can compete in relation 
    to other markets;                                                           
-    To ensure that any development in this (vaccines) sector in South Africa   
    opens access to other markets as potential customers; and                   
-    To promote Black Economic Empowerment (BEE)                                
15 February 2011                                                                
Sponsor                                                                         
Java Capital                                                                    
Date: 15/02/2011 12:52:01 Supplied by www.sharenet.co.za                     
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