China Kanghui Holdings Announces Pricing of Initial Public Offering
August 10, 2010


CHANGZHOU, China, (BUSINESS WIRE) -- China Kanghui Holdings (NYSE: KH) ("Kanghui" or the "Company"), a leading domestic developer, manufacturer and marketer of orthopedic implants in China, today announced that its initial public offering of 6,675,000 American Depositary Shares ("ADSs"), representing 40,050,000 ordinary shares, was priced at $10.25 per ADS. The Company is offering 5,340,000 ADSs, and the selling shareholders are offering 1,335,000 ADSs. The ADSs are expected to begin trading on the New York Stock Exchange on August 11, 2010 under the symbol "KH."

The Company has granted the underwriters a 30-day option to purchase up to 1,001,250 additional ADSs.

The Company intends to use the net proceeds for the development of its product pipeline, expansion of its manufacturing capacities, enhancement of its sales and marketing capabilities as well as general corporate purposes.

Morgan Stanley and Piper Jaffray are acting as the joint book running managers of the offering. Cowen and Company and Canaccord Genuity are acting as co-managers.

About China Kanghui Holdings
Founded in 1997, Kanghui is a leading domestic developer, manufacturer and marketer of orthopedic implants in China. The Company offers a wide array of proprietary orthopedic implant products in trauma and spine. It has an extensive network of distributors for its products in China. In addition, Kanghui's products are distributed in 24 countries. Kanghui has strong research and development capabilities, focused on developing new proprietary products, including new product lines, extensions of existing product lines and enhancements of existing products. For more information, please visit www.kanghui.com.

Vivo Ventures invested in the Series B-1 financing for KangHui Medical (NYSE:KH) in 2009. Our involvement with the company is representative of the Vivo approach to investing. Our goal is to help our companies build great foundations and while that involvement is typically on the board level, our firm will occasionally provide direct resources to help companies achieve their goals. Chen Yu, a Partner at Vivo Ventures, joined KangHui Medical in early 2010 as Chief Business Officer to oversee corporate development activity, handle US based investor relations, and to work with the CEO to help formulate long-term corporate strategy. By the summer of 2010, the company had made such progress that it filed to go public on the NYSE.

In August 2010, the company was able to achieve an IPO in difficult market conditions where 7 of the previous 9 IPO’s had priced below range or traded down after market. However, Kanghui's growth story struck a chord with investors and was able to price at the midpoint of the range and close 19% above issue on a day when the market plunged nearly 2.5% (see WSJ article).

KangHui represents our vision of an ideal company-investor partnership where Vivo can provide its company’s with critical resources to help them succeed.