Cheung Laboratories Inc. has acquired 16 million shares of its common stock.

COLUMBIA, Md.--(BUSINESS WIRE)--Nov. 7, 1996--CLI (OTC BB:CGLB) has recently acquired 16 million shares of its common stock from Mr. Gao Yu Wen.

The 16 million shares will be canceled on the books and records of CLI, reducing the company's issued and outstanding common stocks from 41,205,360 shares to 25,205,360 shares.

On June 10, 1996, CLI announced that it had entered into an agreement to (i) rescind its 9.5% interest in Aestar, a fine chemical company in Zhongshan, China, in exchange for 16 million shares of its common stock owned by Mr. Gao; and (ii) to repurchase an additional 4 million shares at a purchase price of 55 cents per shares.

The entire 20 million shares was to be held by Mr. Gao as security for payment of the $2.2 million which was due on or before Nov. 30, 1996.

By an Amendment dated Oct. 23, 1996, CLI and Mr. Gao's representatives revised the terms of the Original Agreement so that Mr. Gao agreed to immediately transfer to CLI the 16 million shares of common stock and the deadline for paying the $2.2 million was extended to Dec. 31, 1996.

The purchase price of the remaining 4 million shares was reduced to $2,160,000. Upon the execution of the Amendment on Oct. 23, 1996, Mr. Gao through his representatives, conveyed to CLI the 16 million shares and CLI rescinded its interest in Aestar. Until payment of the $2,160,000, Mr. Gao continues to own 4 million shares of common stocks.

CLI has its main office in Columbia, is traded on the OTC market (symbol CGLB), and has offices in Toronto and Hong Kong. CLI designs, manufactures and markets hyperthermia medical equipment used for the treatment of cancer and prostatic diseases. The hyperthermia equipment manufactured by CLI is marketed throughout the world under the trade name Microfocus.

CONTACT: Cheung Laboratories, Inc., Columbia

John Mon, 410/290-5390