China Botanic Pharmaceutical Granted China Patent for Siberian Ginseng Extraction Process

HARBIN, China, June 30, 2011 /PRNewswire-Asia/ -- China Botanic Pharmaceutical Inc. (NYSE 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 the State Intellectual Property Office of the People's Republic of China has granted China patent No. ZL200710301682X to China Botanic for its proprietary process to separate and extract effective parts of Siberian Ginseng (Acanthopanax). The patent will also protect the resulting Siberian Ginseng extracts and their applications and will provide market exclusivity for a period of 20 years.

The patent for "Extraction of Effective Parts of Siberian Ginseng and their Preparation and Application" is the catalyst that will continue to drive the development of the Company's innovative Acanthopanax series. Among recent successes using these processes are Lyophilized Syringin Powder and Total Flavonoids capsules. These medicines are powerful new tools in combating depression and senile dementia and have been recognized as "class one new drugs" and "innovative drugs" by the State Food and Drug Administration of China. The patent covers a wide variety of possible Siberian Ginseng extraction methods and applications, creating a high barrier to entry for competitors seeking to develop similar Siberian Ginseng products, and, as a result, it confers significant independent intellectual property rights on the Company.

"It is highly gratifying to receive patent protection for our advancements in the treatment of depression using all-natural Siberian Ginseng extracts. With our exclusive access to a large proportion of the Siberian Ginseng resources, and now this important protection for the extracts we obtain from the plant, our methods of preparation and their applications, we feel this is a major step forward. The issuance of this patent will enhance the commercial potential of our Siberian Ginseng applications in China, one of the largest markets for depression therapies, and further strengthen our leading market position," commented Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic.

"We believe Syringin Powder will be our most powerful depression fighter to date and we continue to discover additional properties of Siberian Ginseng every day. We are excited about future revenue growth and opportunities created as a result of the patent and the high-quality efforts of our R&D program, which continues to earn us attractive returns. We also plan to apply for a series of domestic and overseas patents for each Siberian Ginseng extract that has deep development value and eventually form a patent protection network for our core technology," concluded Mr. Li.

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.