EXHIBIT 99.1
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                              SINOVAC BIOTECH LTD.
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     HAS RECEIVED OVER US $1 MILLION IN GOVERNMENT RESEARCH FUNDING FOR SARS
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                                     VACCINE
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BEIJING, 1 June, 2004 - Sinovac Biotech Ltd. ("Sinovac") (NASD OTC-BB: SNVBF) is
pleased to announce  that to date,  Sinovac has received more than US $1 million
in research  funding from the Chinese state  government for its inactivated SARS
vaccine  development  program.  It is expected  that funding of  Sinovac's  SARS
vaccine  development  program  will  continue to be  partially  supported by the
Chinese government.  Management of Sinovac believes that because of its low-cost
advantage  in China,  this amount would fund  significantly  more R & D in China
than the same research budget in the United States.

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

The  Chinese  State  Drug  Administration,  the  SFDA,  has  stated  that  it is
fast-tracking  the drug approval  process for Sinovac's  potential SARS vaccine.
Based on the regular drug approval  process in China, it would take between 3 to
5 years for a SARS vaccine to receive final commercial approval.  However,  with
fast-tracking the process, it could take as little as 1 to 2 years. Furthermore,
it is still possible for the SARS vaccine to be urgently approved for use in the
event of further  SARS  outbreaks.  An urgently  expedited  Chinese  inoculation
program  would first target the following  groups:  1) the more than 5.2 million
medical workers all over China;  and 2) the population in a particular  outbreak
area,  such as Beijing (about 13.8 million  people),  Guangdong  Province (about
86.4 million people), or Hong Kong (about 6.71 million people).

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 recent  confirmation of six new SARS cases in China  underscores the need to
develop an effective  vaccine in quantity.  China's health  ministry  traced all
infections  back to a  research  laboratory  at the  Institute  of  Virology  in
Beijing,  where the Chinese  Centre for  Disease  Control  was  conducting  SARS
research.  In the wake of the discovery,  world health authorities sent teams of
experts to China to investigate the outbreak.  These authorities  concluded that
the epidemic did not pose a public  health  danger.  The reaction to this recent
outbreak  serves to remind us that the impact of a new SARS  threat is global in
scope. A new, widespread SARS outbreak would likely have a devastating impact on
the  economies  of many  nations,  when  many  economies  are just now  building
strength.  The  importance  and need to develop an  effective  SARS vaccine is a
paramount concern for world health authorities.

During the current first phase of human clinical  testing,  Sinovac will provide
continuous  updates on the status of the trial and the health  condition  of the
volunteers.


ABOUT SARS
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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. The
SARS global  outbreak of 2003 was  contained;  however,  it is expected that the
disease could re-emerge in an annual cycle similar to the common flu.


ABOUT SINOVAC BIOTECH LTD.
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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 the first and 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.
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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
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.