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WuXi PharmaTech Signs VMI Agreement with BASF

April 13, 2005 - Shanghai, China - Recently, WuXi PharmaTech Co., Ltd. and BASF agreed on a vendor managed inventory (VMI) system for selected inorganic specialties, which will set up a consignment-based vendor stock at WuXi PharmaTech. With an on-site BASF managed inventory, researchers at WuXi PharmaTech will be able to get reagents from BASF's wide portfolio of Boron Chemicals and Strong Bases without worrying about delivery uncertainty and lead-time.

As a chemistry-based R&D service company, WuXi PharmaTech strives to provide high quality and timely services to global pharmaceutical and biopharmaceutical companies. WuXi PharmaTech regularly purchases chemicals and reagents from vendor catalogs. Companies like Acros, Adrich, Lancaster, TCI, Fisher Scientific and etc. all provide their products and services to WuXi PharmaTech. However, many must-have reagents and chemicals have to be shipped from overseas and thus have long lead-time, an issue that WuXi PharmaTech has been trying to solve. The VMI arrangement with BASF will reduce such lead-time and minimize demand and supply uncertainty for both BASF and WuXi PharmaTech. Such an agreement precisely reflects the customer- centered business ethic and excellence that WuXi PharmaTech embodies.

With the expanding of business and the setup of a new GMP plant in Shanghai, WuXi PharmaTech is poised to achieve high growth and attract more collaboration partners; one representative of such is BASF.

BASF is the world's leading chemical company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF's intelligent solutions and high-value products help its customers to be more successful. In 2004, BASF had approximately 82,000 employees and posted sales of more than €37 billion.

Dr. Ge Li, the Chairman & CEO of WuXi PharmaTech, commented"The agreement on vendor managed inventory is a win-win solution for both BASF and WuXi PharmaTech. The consignment arrangement not only eliminates our order fluctuation for BASF, but also, more importantly, ensures our service commitment to WuXi PharmaTech's customers by allowing us to cut the usual seven shipping days to zero. This deal is a milestone for us and we encourage other vendors to follow suit. Again, this agreement demonstrates our determination to serve "our customers better."

About WuXi PharmaTech (Cayman) Inc.
WuXi PharmaTech is a leading pharmaceutical, biotechnology and medical device R&D outsourcing company, with operations in China and the United States. As a research-driven and customer-focused company, WuXi PharmaTech provides pharmaceutical, biotechnology and medical device companies a broad and integrated portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process. WuXi PharmaTech's services are designed to assist its global partners in shortening the cycle and lowering the cost of drug and medical device R&D. The operating subsidiaries of WuXi PharmaTech are known as WuXi AppTec. For more information, please visit: www.wuxiapptec.com.

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