Skystar Bio-Pharmaceutical Develops Over 20 New Microorganism Products

XI'AN, CHINA, July 9 /Xinhua-PRNewswire-FirstCall/ -- Skystar

Bio-Pharmaceutical Co., Ltd. (OTC Bulletin Board: SKBI) ("Skystar"), a leading bio-pharmaceutical company in the People's Republic of China ("PRC"), today announced that it has successfully developed over 20 new products for livestock and aquatic animals with the drug-resistant microorganism lactobacillus acidophilus ("L. acidophilus"). The launch of these new products is expected to add over $550,000 to the company's annual revenue.

L. acidophilus is a commonly used probiotic, or "friendly" bacteria that protects against the entrance and proliferation of disease-causing organisms. The new products, developed with L. acidophilus, have a high activity of microbial strains, strong drug resistance and outstanding stability. In particular, two of the products include a highly active microorganism density of Condensed Tianji 888 and Condensed Tianji 999, which are produced using freeze-dry technology and contain as much as 10 billion CFU per gram of L. acidophilus. Skystar will launch the L. acidophilus microorganisms for both aquaculture and livestock by the end of third quarter in 2007 after gaining production approval from the Ministry of Agriculture.

Notably, the new microorganisms inaugurated Skystar's product line for use in aquaculture. Fish farming is increasingly replacing commercial fishing operations which have caused widespread overfishing resulting in strong demand for aquatic forage and feed additive products. Demand in China for microorganisms used in aquaculture is estimated to be 100,000 metric tons in 2007.

"We continue to dedicate our research and development efforts towards developing new products that enhance the quality of animal health and contribute to agriculturists' output," commented Mr. Weibing Lu, Chairman and Chief Executive Officer of Skystar. "Our new products have strong market potential as demand for microorganisms in China is estimated at 300,000 metric tons while only 50,000 metric tons were produced domestically in 2006."

Skystar's Research and Development team developed these microorganism products with the help of Jiangsu Microorganism Institute ("JMI"), one of the leading research institutes in the bio-pharmaceutical industry in China. JMI has completed over 20 national key research projects and over 200 provincial and municipal research projects and has received more than 20 patents with 5 international patents during its 30 years operating as a research institute. Skystar has 100% of the rights for commercialization of these microorganism products.

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.

Source: Skystar Bio-Pharmaceutical Co., Ltd.
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