Skystar Bio-Pharmaceutical Announces an Addition of Over 300 New Distributors

XI'AN, China, July 30 /Xinhua-PRNewswire-FirstCall/ -- Skystar

Bio-Pharmaceutical Co., Ltd. (OTC Bulletin Board: SKBI) ("Skystar", "Company"), a leading bio-pharmaceutical company in the People's Republic of China ("PRC"), today announced that it has increased its distributor base by over 300 during the first half of 2007.

Skystar's new distributors primarily target small- to medium- sized end users at the town/county level. The addition of over 300 new distributors more than doubles the number the Company had at the end of 2006 to between 500 and 600. The majority of the new distributors are located the in major farming and ranching provinces such as Shaanxi, Shandong, Sichuan, Hubei and Hunan.

As a result of the additional distributors, the Company expects that its higher margin veterinary medicines will now account for a larger percentage of its total sales. The increase in the distributor base will help keep Skystar in line with its 2007 revenue targets of $12 million to $14 million.

"We are delighted to report to our shareholders that our sales and marketing efforts have been very successful during the first half of 2007," commented Mr. Weibing Lu, Chairman and Chief Executive Officer of Skystar. "We have targeted distributors and end users at the town and county levels in order to bypass the primary and secondary distributors at the provincial and city levels. This allows us to penetrate our markets deeper and pass the cost saving to our customers. This strategy should help build brand loyalty and enable us to consistently grow our revenue."

Throughout the first half of 2007, Skystar has launched numerous sales and marketing campaigns in an effort to expand its client base. While Skystar is targeting to add 100 new clients during the second half of 2007, the Company intends to focus more on providing technical training and after-sales service to existing clients in order to build customer loyalty.

About Skystar Bio-Pharmaceutical

Skystar Bio-Pharmaceutical Company is a China-based producer and distributor of vaccines, microorganisms and veterinary medication to cure and prevent disease in poultry, livestock, birds and pets. The company's product line consists of more than 100 products with over 50 additional products in the developmental stage. Skystar has formed strategic sales distribution networks throughout China. The company recently completed the first phase of construction of new state-of-the-art bio-pharmaceutical facilities covering an area of almost eight acres. The new facilities meet or exceed all Good Manufacturing Practice (GMP) Certification Standards and have received GMP Certification from the Chinese government. For additional information, please visit .

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events including revenues and gross margins could differ materially from management's current expectations. Such factors include, but are not limited to the company's ability to accurately complete product orders, coordinate product design with its customers, ability to expand and grow its distribution channels, market acceptance of new products, competitive pressures, scale-up of manufacturing, political and economic factors in the People's Republic of China, the company's ability to find attractive acquisition candidates, dependence on a limited number of larger customers and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. 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.

For more information, please contact:

Skystar Bio-Pharmaceutical Co., Ltd.

Scott Cramer

Director - U.S. Representative

Tel: +1-407-645-4433


CCG Elite Investor Relations

Crocker Coulson, President


Leslie Richardson, Financial Writer

Tel: +1-310-231-8600 x122


Source: Skystar Bio-Pharmaceutical Co., Ltd.
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