China Botanic Sees Strong Initial Demand from Guangzhou Military Region

HARBIN, China, Dec. 9, 2010 /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"), today announced that the Company has received a significant number of purchase orders totaling approximately $0.3 million since it won a major one-year contract bid to supply its all-natural products to the Guangzhou Military District.  The main products supplied under the contract include the Company's Siberian Ginseng series and other traditional OTC products.

China Botanic is the leader in the production and development of Siberian Ginseng products, which possess scientifically-proven medical benefits in treating depression and enhancing quality of sleep. The Guangzhou Military District is one of the China's most important military administrative regions and includes military hospitals and other medical facilities in Hubei, Hunan, Guangdong and Hainan provinces, as well as in Hong Kong and Macau.  

"Building a cooperative relationship with the military procurement network diversifies our sales channels," said Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic. "We are delighted to see strong initial sales as a result of our contract with the Guangzhou Military District, which reflects the effectiveness of our marketing strategies.  We will continue to explore additional sales channels both within and outside of China's public sector.  In addition to the success of our sales team, we are honored that the Guangzhou Military Region looks to China Botanic for plant-based remedies."  

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.