HARBIN, China, June 12 /Xinhua-PRNewswire-FirstCall/ -- China Sky One
Medical, Inc. (Amex: CSY) "China Sky One Medical," "CSY"), a manufacturer,
marketer and distributor of pharmaceutical, medicinal and diagnostic kit
products in China, today announced that it has signed an agreement to acquire
Peng Lai Jin Chuang Company ("Jin Chuang"), a newly established pharmaceutical
company that has obtained Good Manufacturing Practice Certification (GMP)
approval issued by the country's State Food and Drug Administration (SFDA).
Under the terms of the agreement, China Sky One Medical's wholly-owned
subsidiary, Harbin Tian Di Ren Medical Science and Technology Company, will
acquire 100% of Jin Chuang's assets for a cash payment of RMB 17 million (US
$2.5 million; 1 RMB = $0.14 US dollars) and RMB 32 million (US $4.6 million)
of China Sky One Medical's common shares. In exchange, China Sky One Medical
will obtain Jin Chuang's RMB 70 million (US $10.1 million) in assets, which
includes franchise, production and operating rights for a portfolio of 20
approved drugs, including drugs for the treatment of colds, cardiovascular
disease, and depression. The acquisition is expected to close on or before
June 30, 2008.
"We expect the synergies that we will realize from this strategic
acquisition to make a significant contribution to our profitability in the
coming years," said Mr. Yan-qing Liu, Chairman, CEO and President of China Sky
One Medical, Inc. "Specifically, Jin Chuang allows us to broaden our product
lines and improve our manufacturing capabilities. We have been focused
primarily on external use products; however following this acquisition a new
pipeline of internal use drugs can enhance our product line. Since Jin Chuang
is a newly established company and has not yet started production, we expect
it will begin contributing to our profitability at the end of this year."
About Peng Lai Jin Chuang Company
Peng Lai Jin Chuang Company ("Jin Chuang"), Peng Lai Jin Chuang Group
Corporation's wholly-owned subsidiary, has just been set up to develop,
manufacture, and distribute pharmaceutical, medicinal and diagnogistic
products in China. Jin Chuang's lead products include Chinese treatments for
health improvement. Through its GMP-certified manufacturing facilities, Jin
Chuang develops and manufactures drugs in various forms.
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company
whose principal operations are through its subsidiaries, which are engaged in
the manufacturing, marketing and distribution of pharmaceutical, medicinal and
diagnostic kit products. Through its wholly-owned subsidiaries, Harbin Tian
Di Ren Medical Science and Technology Company (''TDR'') and Harbin First
Bio- Engineering Company Limited ("First"), the Company manufactures and
distributes over-the-counter pharmaceutical products as its primary revenue
source. For more information, visit http://www.skyonemedical.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute
forward- looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements can be identified by the use
of forward- looking terminology such as "believe," "expect," "may," "will,"
"should," "project," "plan," "seek," "intend," or "anticipate" or the negative
thereof or comparable terminology. Such statements typically involve risks
and uncertainties and may include financial projections or information
regarding our future plans, objectives or performance. Actual results could
differ materially from the expectations reflected in such forward-looking
statements as a result of a variety of factors, including the risks associated
with the effect of changing economic conditions in The People's Republic of
China, variations in cash flow, reliance on collaborative retail partners and
on new product development, variations in new product development, risks
associated with rapid technological change, and the potential of introduced or
undetected flaws and defects in products, and other risk factors detailed in
reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact:
China Sky One Medical, Inc.
Mr. Xiaoqing Liao, CFO
Tel: +86-451-5399-4069
Email: cntiandiren@yahoo.com.cn
CCG Elite Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgelite.com
SOURCE China Sky One Medical, Inc.