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Daehan New Pharm Co., Ltd. Analysis of Financial Results for January–September 20101. Increase in Sales Revenue (1) Third Quarter - Compared to the same period of the previous year, product sales increased by 23.1% and merchandise sales by 528.3%, recording a total growth rate of 25.4%. (Unit: Million KRW) Classification Q3 2010 Q3 2009 Change Change (%) Sales Products 12,284 9,979 2,305 23.1% Merchandise 289 46 243 528.3% Total 12,573 10,025 2,548 25.4% (2) Cumulative (January–September)- Compared to the same period of the previous year, product sales increased by 13.5% and merchandise sales by 92.9%, achieving total growth of 15%.(Unit: Million KRW) Classification Jan–Sep 2010 Jan–Sep 2009 Change Change (%) Sales Products 32,975 29,054 3,921 13.5% Merchandise 1,107 574 533 92.9% Total 34,082 29,628 4,454 15.0% 2. Operating Profit and Income Before Income Taxes from Continuing Operations(1) Third Quarter- Operating profit increased by KRW 180 million (11.6%) compared to the same period of the previous year.- Income before income taxes from continuing operations increased by KRW 590 million (1,414.3%) compared to the same period of the previous year.(Unit: Million KRW) Q3 2010 Q3 2009 Change Change (%) Amount Profit Rate Amount Profit Rate Operating Profit 1,705 13.6% 1,528 15.2% 17711.6% Non-operating Income 81 105 -24 Non-operating Expenses 1,150 1,591 -441 Income Before Income Taxes (Continuing Operations) 636 5.1% 42 0.4% 5941414.3% 1) Operating profit in 2010 was KRW 1.70 billion (margin 13.6%) compared to KRW 1.53 billion (margin 15.2%) in 2009, showing an increase of KRW 180 million over the previous year.2) Income before income taxes from continuing operations was KRW 640 million (margin 5.1%) in 2010, compared to KRW 40 million (margin 0.4%) in 2009, an increase of KRW 590 million year-on-year.(2) Cumulative (January–September)- Operating profit increased by KRW 440 million (10.4%) compared to the same period of the previous year.- Income before income taxes from continuing operations was KRW 2.47 billion, a decrease of KRW 1.7 billion compared to the previous year, mainly due to a reduction in non-operating income (interest income).(Unit: Million KRW) Jan–Sep 2010 Jan–Sep 2009ChangeChange (%) AmountProfit RateAmountProfit RateOperating Profit4,67913.7%4,23714.3%44210.4%Non-operating Income1,433 3,614 -2,181 Non-operating Expenses3,640 3,922 -282 Income Before Income Taxes (Continuing Operations)2,4727.3%3,92913.3%-1,457-37.1%1) Operating profit in 2010 was KRW 4.68 billion (margin 13.7%), compared to KRW 4.24 billion (margin 14.3%) in 2009, showing an increase of KRW 440 million over the previous year.2) Income before income taxes from continuing operations was KRW 2.47 billion (margin 7.3%) in 2010, compared to KRW 3.93 billion (margin 13.3%) in 2009, showing a decrease from the previous year.(Unit: Million KRW) Jan–Sep 2010 Jan–Sep 2009 Change Remarks Interest Income 121 1,721 -1,600 - 2009 (January–September): Interest income of KRW 1.7 billion (USD 1,318,744.62) was generated from loans totaling USD 11 million.- Income before income taxes from continuing operations decreased by approximately KRW 1.46 billion (37.1%) compared to the same period of the previous year, mainly due to the decline in interest income from loans.3. Improvement in Financial Structure- Significant reduction in long-term loans.(Unit: Million KRW) Jan–Sep 2010 Jan–Sep 2009 Change Remarks Long-term Loans 5,482 25,687 -20,205 Total Assets 125,057 111,827 13,230 Ratio to Total Assets (%) 4.4% 23.0% -18.6% (1) The long-term loan of USD 11,000,000 to GALAZ ENERGY B.V. was converted into equity as of February 22, 2010.(2) The loan of USD 6,200,000 to BNG ENERGY B.V. was converted into equity as of May 7, 2010.

Daehan New Pharm Co., Ltd. completed its mid-year recruitment for experienced and new employees, and commenced a 10-day training program starting from September 6, 2010, at the Cheongho Human Resources Development Center located in Hwaseong, Gyeonggi Province. This training program, with the goal of strengthening sales capabilities, includes 25 trainees who will focus on mastering local sales strategies, enhancing the fundamental qualities and ethical education of pharmaceutical sales representatives. Earlier in February of the same year, the company also recruited 25 new employees, conducted a 15-day training program, and assigned them to various branches to actively promote local sales efforts, achieving results beyond expectations.

Daehan New Pharm Co., Ltd. Analysis of Financial Results (First Half of 2010)1. Increase in Product Sales(Unit: Million KRW) First Half of 2010 First Half of 2009 Change Change (%) Sales Products 20,690 19,075 1,615 8.5% Merchandise 818 528 290 54.9% Total 21,508 19,603 1,905 9.7% - Compared to the same period of the previous year, product sales increased by 8.5%, and merchandise sales rose by 54.9%, achieving an overall sales growth rate of 9.7%.2. Operating Profit and Income Before Income Taxes from Continuing Operations- Operating profit increased by KRW 260 million (9.7%) compared to the same period last year.- Income before income taxes from continuing operations recorded KRW 1.84 billion, a decrease of KRW 1.95 billion from the previous year, mainly due to a decline in non-operating income (interest income).(Unit: Million KRW) First Half of 2010 First Half of 2009 Change Change (%) Amount Profit Rate Amount Profit Rate Operating Profit 2,973 13.8% 2,709 13.8% 264 9.7% Non-operating Income 1,559 3,509 -1,950 Non-operating Expenses 2,697 2,331 366 Income before Income Taxes from Continuing Operations 1,835 8.5% 3,887 19.8% -2,052 -52.8% (1) Operating profit was KRW 2.97 billion (margin 13.8%) for the first half of 2010, compared to KRW 2.71 billion (margin 13.8%) for the same period of 2009, an increase of KRW 260 million year-on-year.(2) Income before income taxes from continuing operations was KRW 1.84 billion (margin 8.5%) in 2010, compared to KRW 3.89 billion (margin 19.8%) in 2009, showing a decrease from the previous year.(Unit: Million KRW) First Half of 2010 First Half of 2009 Change Remarks Interest Income 82 1,707 -1,625 Foreign Exchange Gains 254 730 -476 Foreign Exchange Losses 92 65 27 - In the first half of 2009, interest income of KRW 1.7 billion (USD 1,318,744.62) was generated from loans amounting to USD 11 million.- Income before income taxes from continuing operations decreased by approximately KRW 2 billion (52.8%) year-on-year, primarily due to reduced interest income from loans.3. Improvement in Financial Structure- Significant reduction in long-term loans.(Unit: Million KRW) First Half of 2010 First Half of 2009 Change Remarks Long-term Loans 5,809 25,687 -19,878 Total Assets 120,478 111,827 8,651 Ratio to Total Assets (%) 4.8% 23.0% -18.1% (1) The long-term loan of USD 11,000,000 to GALAZ ENERGY B.V. was converted into equity on February 22, 2010.(2) The loan of USD 6,200,000 to BNG ENERGY B.V. was also converted into equity on May 7, 2010.

Daehan New Pharm Co., Ltd. Analysis of Financial Results (1st Quarter, January–March 2010)1. Increase in Product Sales (Unit: Million KRW) TypeJan–Mar 2010Jan–Mar 2009ChangeChange (%)SalesProducts10,1448,8371,30714.8%Merchandise18043137322.5%Total10,3248,8801,44416.3%- Compared with the previous quarter, product sales increased by 14.8%, and merchandise sales rose by 322.5%, resulting in total sales growth of 16.3%.- Sales of livestock disinfectants related to the foot-and-mouth disease outbreak increased 200% compared with the previous quarter.2. Substantial Improvement in Operating Profit(Unit: Million KRW) Jan–Mar 2010Jan–Mar 2009ChangeChange (%)AmountProfit RateAmountProfit RateOperating Profit1,23912.0%93210.5%30732.9%Non-operating Income1,063 4,117 -3,054 Non-operating Expenses1,580 1,916 -336 Income before Income Taxes from Continuing Operations7727.0%3,13335.3%-2,411-77.0%(1) Operating profit for the first quarter of 2010 was KRW 1.24 billion (margin 12.0%), compared with KRW 930 million (margin 10.5%) in the same period of 2009, marking a significant 33% year-on-year increase.- This improvement was achieved through rigorous profit-oriented management andive concentration on high-profit products, resulting in higher profit margins.(2) Income before income taxes from continuing operations was KRW 720 million (margin 7.0%) in 2010, compared to KRW 3.13 billion (margin 35.3%) in 2009, showing a decline from the prior year.(Unit: Million KRW) Jan–Mar 2010Jan–Mar 2009ChangeRemarksForeign Exchange Gains414,006-3,965 Foreign Exchange Losses421101320 - A foreign exchange loss occurred due to the depreciation of the Korean won associated with USD 11 million in loans receivable.- Income before income taxes decreased by approximately KRW 2.4 billion (77%) year-on-year, mainly due to exchange rate fluctuations affecting loans. This was a non-cash book loss with no actual cash outflow involved.3. Improvement in Financial StructureSignificant Reduction in Long-term Loans(Unit: Million KRW) End-Mar 2010End-Dec 2009ChangeRemarksLong-term Loans Receivable12,43925,687-13,248 Total Assets116,135111,8274,308 Ratio to Total Assets (%)10.7%23.0%-12.3% - The long-term loan of USD 11,000,000 to GALAZ ENERGY B.V. was converted to available-for-sale securities as of February 23, 2010, resulting in a substantial reduction in long-term loans.

A representative of Daehan New Pharm stated that, due to the spread of foot-and-mouth disease (FMD), sales of FMD disinfectants have increased, resulting in an 86% growth in disinfectant sales compared to the previous year, and that continuous sales growth is expected in the future. At a time when FMD, which began in Ganghwa Island, is spreading to Chungju in North Chungcheong Province and showing signs of nationwide expansion, the sales of Daehan New Pharm Co., Ltd.’s professional disinfectant products such as All Clean Up and Kingcide are increasing among local governments and agricultural cooperatives purchasing FMD disinfectants. After the outbreak of FMD, All Clean Up, a specialized disinfectant for FMD, was supplied as part of the quarantine project by the National Agricultural Cooperative Federation, and additional supplies were also delivered to regional livestock cooperatives and dairy cooperatives in Yangpyeong, Anyang, Hongseong, and Dangjin. In addition, more than ten local governments, including Hwaseong City Hall in Gyeonggi Province, have requested to purchase disinfectants, and deliveries have been made and are being prepared. Various other organizations have also contacted the company to urgently purchase disinfectants, and to meet the additional demand, the company is focusing on securing major raw materials for disinfectant production. As a result, sales of FMD-related products are increasing, and it is expected that the increase in disinfectant sales of Daehan New Pharm Co., Ltd., which has relatively high brand recognition, will stand out compared to its competitors.

On April 15, 2010, Daehan New Pharm Co., Ltd. delivered 3,470 kg of All Clean Up, a trisodium-based disinfectant, after it wased for purchase by the National Agricultural Cooperative Federation (NACF) as part of its foot-and-mouth disease (FMD) and avian influenza (AI) quarantine program. The FMD outbreak that began in Ganghwa Island in April is a Class 1 statutory contagious disease that affects cattle, sheep, pigs, and other livestock. It is a viral infection with an incubation period of 2 to 7 days, followed by high fever and symptom onset. Commonly known as “Aphthae” or “mouth-and-foot disease,” FMD is a fatal, Class 1 viral livestock disease that targets cloven-hoofed animals such as cattle, pigs, and goats. Once infected, animals develop a high fever exceeding 40 degrees Celsius, excessive salivation, and blisters on the mouth, hooves, and udders. The mortality rate is approximately 50–60% in pigs and 5–7% in cattle. Meanwhile, as part of local government quarantine projects related to disinfectant purchases, Daehan New Pharm Co., Ltd. supplied disinfectants to 17 local governments, including Gyeonggi Provincial Government, as of April 2010. All disinfectants supplied by the company are verified, high-quality products that have undergone efficacy testing conducted by university institutions.

Daehan New Pharm Co., Ltd. Analysis of Financial Results (January–December 2009)1. Increase in Product Sales(Unit: Million KRW) Jan–Dec 2009 Jan–Dec 2008 Change % Sales Products 38,643 30,695 7,948 25.9% Merchandise 1,760 3,282 -1,522 -46.4% Total 40,403 33,977 6,426 18.9% - The company discontinued its Avent cosmetics business as of mid-2009.- Sales from the discontinued business: KRW 24 million in 2009 vs. KRW 4,197 million in 2008.- As a result, merchandise sales decreased sharply, while product sales increased by 25.9% compared to the previous year.2. Significant Improvement in Operating Profit(Unit: Million KRW) Jan–Dec 2009 Jan–Dec 2008 Change Change (%) Operating Profit 5,453 (13.5%) 2,736 (8.1%) 2,717 99.3% Non-operating Income 3,540 10,990 -7,449 Non-operating Expenses 6,643 6,366 277 Income before Income Taxes from Continuing Operations 2,350 (5.8%) 7,360 (21.7%) -5,009 -68.1% (1) Operating profit reached KRW 5.45 billion (margin 13.5%) in 2009, up from KRW 2.74 billion (margin 8.1%) in 2008, representing a 99.3% year-on-year increase.1) Achieved cost reduction and profit improvement through strict profit-oriented management.2) Enhanced both sales and profitability bying and focusing on high-profit products.(2) Income before income taxes from continuing operations was KRW 2.35 billion (margin 5.8%) in 2009, compared with KRW 7.36 billion (margin 21.7%) in 2008, showing a decrease from the prior year.(Unit: Million KRW) Jan–Dec 2009 Jan–Dec 2008 Change Remarks Foreign Exchange Gains 336 10,659 -10,323 Foreign Exchange Losses 2,408 231 2,176 - A foreign exchange loss occurred due to the depreciation of the Korean won related to USD 22 million in loans receivable.- Income before income taxes from continuing operations decreased by approximately KRW 5 billion (68.1%) year-on-year, mainly due to this foreign exchange loss. However, this was a non-cash loss with no actual cash outflow.3. Improvement in Financial Structure1) Improved Liquidity(Unit: Million KRW) End-2009 End-2008 Remarks Current Assets 46,034 38,959 Increase by 7,075 Current Liabilities 24,486 34,802 Decrease by 10,316 Current Ratio 188.0% 111.9% - Current ratio improved from 111.9% at the end of 2008 to 188.0% at the end of 2009, an improvement of 76.1 percentage points.2) Improved Debt Ratio(Unit: Million KRW) End-2009 End-2008 Remarks Liabilities 35,509 42,049 Decrease by 6,540 Assets 76,318 77,064 Debt Ratio 46.5% 54.6% - Debt ratio improved from 54.6% at the end of 2008 to 46.5% at the end of 2009, an improvement of 8.1 percentage points.3) Improved Soundness of Asset Structure(Unit: Million KRW) End-2009 End-2008 Change Remarks Long-term Loans Receivable 25,687 41,498 -15,810 Total Assets 111,827 119,113 -7,286 Ratio to Total Assets (%) 23.0% 34.8% -11.9% - On June 30, 2009, USD 8 million in long-term loans were collected, resulting in a significant reduction in loan receivables.- On July 1, 2009, USD 750,000 was collected as loan interest.- On December 24, 2009, USD 3 million in long-term loans were offset through the acquisition of treasury stock.- The ratio of long-term loans to total assets improved from 34.8% at the end of 2008 to 23.0% in the current year, a reduction of 11.8 percentage points.

Notice of Convocation of the 26th Annual General Meeting of Shareholders In accordance with Article 25, Paragraph 2 of the Articles of Incorporation, the 26th Annual General Meeting of Shareholders will be convened as follows. 1. Date and Time:March 12, 2010 (Friday), 9:00 a.m. 2. Venue:Main Conference Room, Hyangnam Pharmaceutical Industrial Complex,900-1 Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do 3. Agenda ItemsReports: Audit Report Business Report Matters for Resolution: Agenda Item No. 1: Approval of Balance Sheet, Income Statement, and Statement of Appropriation of Retained Earnings (Proposed) Agenda Item No. 2: Partial Amendment to the Articles of Incorporation Agenda Item No. 3: Appointment of Outside Director Agenda Item No. 4: Approval of Director Remuneration Limit Agenda Item No. 5: Approval of Auditor Remuneration Limit 4. Exercise of Voting Rights by Beneficial ShareholdersPursuant to Article 314, Paragraph 5 of the Financial Investment Services and Capital Markets Act, the Korea Securities Depository (KSD) is not authorized to exercise voting rights on behalf of the shareholders at this general meeting. Therefore, shareholders do not need to submit any statements of intention regarding the exercise of voting rights to the KSD. As before, shareholders may exercise their voting rights directly by attending the meeting in person, or indirectly by submitting a proxy. February 26, 20101062-4, Namhyeon-dong, Gwanak-gu, SeoulDaehan New Pharm Co., Ltd.Chief Executive Officer: Bae Gun-woo (Seal omitted)

Daehan New Pharm Launches “Vital Oxide,” a Disinfectant for H1N1 Flu — Annual Sales Expected to Reach 10 Billion Won Daehan New Pharm Co., Ltd. (CEO Bae Gun-woo) announced that it will begin full-scale sales of “Vital Oxide” on November 27. The product was developed by the U.S.-based Vital Technologies, registered with the U.S. Environmental Protection Agency (EPA) as a disinfectant, and certified by the National Sanitation Foundation (NSF) as a food-surface sanitizer. Vital Oxide was the first product registered with the U.S. EPA as being effective in killing the H1N1 influenza virus while remaining safe for human use. The product contains stabilized chlorine dioxide, which works through oxidation by oxygen atoms to eliminate 99.9% of bacteria such as Bacillus and Staphylococcus aureus, as well as E. coli. It is an advanced formula developed by nano-sizing the composition particles, enhancing both penetration and sterilization power. Chlorine dioxide is 100% biodegradable, making this an environmentally friendly product. Whereas most hand sanitizers containing alcohol can cause dryness and rough skin by stripping away moisture and keratin, Vital Oxide offers high safety with minimal skin irritation. It can be used for hand cleansing and sterilization in households, schools, toys, and vehicles, positioning it as a well-being sterilizing and disinfecting product. Daehan New Pharm also announced that it will begin full-scale advertising campaigns through newspapers, online platforms, and other mass media starting in December. Vital Oxide will be available in two types: a portable 50 mL mist-type bottle and a 500 mL spray-type bottle. The company has already secured contracts totaling approximately 1 billion won in sales for December and expects sales to reach 10 billion won next year, based on current trends. In addition, the company received clinical trial approval for Oseltamivir Capsules (product name: Daehan New Pharm Oseltamivir Capsules), a generic version of Tamiflu for the treatment of H1N1 influenza, following the submission of its bioequivalence study plan to the Korea Food and Drug Administration.