Release issued 29th June 2002

July 1st 2002 ... British Isles and Shanghai ... Joe Echols, Managing Director of Aqueous Pharma Limited and Charles Li, President of Shanghai Zinox Chemical Technologies Limited have announced the signing of a licensing agreement between their two companies, for three innovative, patented artificial tear products - NutraTear® - Dakrina® - Dwelle®, that were originally developed by Dr. Frank J. Holly. Shanghai Zinox will be the exclusive licensee for the People's Republic of China & Hong Kong. The agreement was reached 18th May 2002.

Mr. Li stated that this is a very significant expansion of Shanghai Zinox's business into the rapidly growing eye care segment for the treatment of dry eye syndrome. Mr. Echols was pleased to announce that Mr. Li's company is the first global licensee for these unique products, and it demonstrates that Shanghai Zinox has the foresight and initiative to provide the highest quality healthcare in the world's largest country.

Dry eye syndrome is the most frequently diagnosed ocular disorder, globally. Artificial tear products are front line therapy for this condition but dry eye patients & eye doctors remain largely unsatisfied as most of the other products provide only a very temporary relief and all have very similar formulations.

The three products developed by Dr. Holly are the first to actually increase wettability of the eye's surface tissue due to a high oncotic pressure, thus providing superior relief of symptoms and less frequent dosing. This is substantiated by 7 clinical studies. The 3 products are positioned to cover the entire spectrum of disease severity; and have also been found especially helpful in treating dry eye resulting from the fashionable LASIK surgery. Development of the three novel products is the result of Dr. Holly's unprecedented understanding of the human tear, from his decades of pioneering research of tear film physiology, as a senior research scientist at the Eye Research Institute of Harvard University, a professor of ophthalmology at Texas Tech University, his private research laboratory (Vision R&D); and the founding of the Dry Eye Institute, which Dr. Holly currently manages.

Shanghai Zinox Chemical Technologies Ltd is a joint venture of Shanghai Zhongshi Inc (a subsidiary of the privately-held Zhongshi Group) and Beijing Jicai Pharmaceutical Technology Ltd. Shanghai Zinox is a rapidly growing company with a focus on new pharmaceutical and healthcare products for niche markets, and has its own nationwide pharmaceutical distribution network to hospitals, clinics & retail pharmacies throughout all of China.

Aqueous Pharma Limited was founded in 2001 to focus solely on innovative therapy for dry eye syndrome and securing the most appropriate licensees globally. To date, it owns the 3 products developed by Dr. Holly, and the first artificial tear to have all 3 layers of the normal human tear.

Mr. James Shen of Wicon International Ltd, a leading consulting firm specializing in Greater China pharmaceutical markets, played a major role as the facilitator for the negotiations.

CONTACT: Joe Echols at: aqueouspharma@aol.com James Shen at: jshen@pharmlinkchina.com Charles Li at: charlee@zhongshi.com Dr. Frank Holly at: fjholly@silver.he.net