China Botanic Pharmaceutical Provides Update on Badger Oil Sales

Badger Oil was launched in November 2010 after over a year of intensive market research and product development. Badger Oil is a new biopharmaceutical treatment to relieve pain and swelling and is effective in treating burns. Management estimates Badger Oil to generate approximately $2.3 million to $2.6 million in sales for the fiscal year 2011.

"The domestic market for bio-pharmaceutical products remains buoyant and we expect market demand for our recently launched Badger Oil to grow in the coming months. We believe the growing market acceptance of Badger Oil is a testament to the quality of both our market research and new product development initiatives," commented Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic. "We have a strong pipeline of new products under development and our R&D team continues to conduct scientific market research to enable us to develop products which meet our customers' expectations."

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.