China Botanic Pharmaceutical Approved to Produce Water-Based Mixtures

HARBIN, China, April 12, 2011 /PRNewswire-Asia-FirstCall/ -- China Botanic Pharmaceutical Inc. (AMEX: CBP) ("China Botanic" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM") in China, today announced that its wholly owned subsidiary, Harbin Renhuang Pharmaceutical Co., Ltd ("Renhuang"), has received official approval to produce water-based mixtures.

The Heilongjiang State Food and Drug Administration (SFDA) has recently issued a new Drug Manufacturing certificate to Renhuang which will permit it to commence production of water-based mixtures. These mixtures are compound liquids that use water as solvent and contain one or more components extracted from Chinese herbal medicine. Unlike decoction that takes long time to prepare, mixture is easy to carry, store and use.  Under the terms of its original Manufacturing Certificate, Renhuang is authorized to make granules, soft capsules, tablets (including cephalosporins), oral liquids, syrups, and hard capsules but not water-based mixtures.

Innovation in manufacturing processes that allow the introduction of new products has been an important route to China Botanic's development of its product pipeline.  It is anticipated that the approval to make water-based mixture products will allow the Company to enhance its product lineup further.

"Our new Drug Manufacturing certificate is a testament to the depth, breadth and sophistication of CBP's production capabilities," said Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic.  "Obtaining this approval indicates that we have obtained the highest caliber of production control.  This certificate will allow us to extend our scope of production, and broaden our range of all-natural treatments."

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. For more information, please visit www.renhuang.com.

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 financial 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 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.