China Botanic Sees Strong Initial Demand for its New Ginseng and Deer Antler Extract

-- Ginseng and Deer Antler Extract Sales Reach $0.7 million in the first two months

HARBIN, China, Dec. 7, 2010 /PRNewswire-Asia/ -- China Botanic Pharmaceuticals, Inc. (AMEX: CBP) ("China Botanic " or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM"), today announced that as of October 31, 2010, the end of its fiscal year 2010, the Company's new biopharmaceutical product, Ginseng and Deer Antler Extract has achieved sales of RMB 4.5 million (or $661,500) since its launch in August 2010. Driven by strong market demand and rapid product acceptance, Ginseng and Deer Antler Extract sales were up approximately 50.0% compared to management's original estimate of $0.4 million for fiscal year 2010.

In July 2010, China Botanic conducted market research in Jiangsu and Zhejiang provinces in China, which revealed that there was no high-end nutritional product for kidney health in these markets. Accordingly, China Botanic's research and development was geared to the development of a traditional remedy for launch in the autumn and winter seasons when the Chinese population consumes nutritional products to maintain kidney health. China Botanic's product offering – Ginseng and Deer Antler Extract is a high-end Chinese medicine, whose ingredients have been used for centuries to nourish the blood and the kidney, restore the body's energy and increase endurance. China Botanic's Ginseng and Deer Antler Extract product has received significant interest and attention from large pharmaceutical stores and local media driving sales growth.

"The initial success of our Ginseng and Deer Antler Extract product further strengthens our growing and diversified product portfolio. We believe our recent product launches and their success demonstrates our world-class market research and product development capabilities," commented Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic. "In fiscal 2011, we will continue to invest in research and development of new bio-pharmaceutical and TCM products to meet the rapidly growing market demand for such products. We believe China Botanic is attractively positioned to capitalize on the growing market opportunity in China's bio-pharmaceutical sector."

ABOUT CHINA BOTANIC PHARMACEUTICAL INC.

China Botanic Pharmaceutical Inc. is engaged in the research, development, manufacturing, and distribution of botanical products, bio-pharmaceutical products, and traditional Chinese medicines ("TCM"), in the People's Republic of China.  All of the Company's products are produced at its three GMP-certified production facilities in Ah City, Dongfanghong and Qingyang. The Company distributes its botanical anti-depression and nerve-regulation products, biopharmaceutical products, and botanical antibiotic and OTC TCMs through its network of over 3,000 distributors and over 70 sales centers across 24 provinces in China.

Safe Harbor Statement

This press release contains certain statements that may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's beliefs, assumptions and expectations of the Company's future operations and economic performance, taking into account the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known that may cause actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial condition expressed or implied in any forward-looking statements. These forward-looking statements are based on current plans and expectations and are subject to a number of uncertainties including, but not limited to, the Company's ability to expand its Ginseng and Deer Antler Extract product sales, ability to manage expansion of its operations effectively, and other factors detailed in the Company's annual report on Form 10-K and other filings with the Securities and Exchange Commission.  The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein.