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Skystar Bio-Pharmaceutical Opens 150 Franchise Showcase Stores



XI'AN, China, July 16 /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 successfully opened 150 Skystar Bio-Pharmaceutical franchise stores during the first half of 2007.

Skystar contracted with 150 independent store owners of animal feed and healthcare products to primarily sell Skystar's products under the Skystar store name. Under the franchise agreement signed with Skystar, the stores are not allowed to sell similar products in the same category if Skystar also offers those products in the store. Each store owner is provided with a complete logo development and identity program, including a showcase counter dedicated to the exhibition of Skystar's products, informational brochures and product pamphlets. The store owners will also be provided with personal training and continuing education on Skystar's products. In addition, all stores are required to have a unified storefront designed by Skystar to reinforce the Company's corporate and brand image.

Skystar intends to open 300 franchise stores throughout 2007 as part of building a dedicated distribution channel. The first 150 stores have been opened in China's main livestock provinces of Shaanxi, Sichuan and Shandong. The stores are conveniently located in towns and villages where store owners are familiar with the local farmers and interact with them on a regular basis. There is no cost to Skystar to establish the franchise stores only a nominal expense for the store design and informational exhibits.

"Our franchise stores are an important part of our marketing and branding strategy and we are excited to announce our progress in this area. Our ability to contract with these independent store owners demonstrates the strength of our product offering and the store owner's belief in our commitment to support our brand by building an extensive product line and providing strong marketing initiatives," commented Mr. Weibing Lu, Chairman and Chief Executive Officer of Skystar. "Our franchise stores also provide us with an important dedicated distribution channel which should enhance our customer loyalty and support our future revenue and net income growth.

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 http://www.skystarbio-pharmaceutical.com .

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:

Scott Cramer

Director -- U.S. Representative

Skystar Bio-Pharmaceutical Co., Ltd

Tel: +1-407-645-4433

Email: scramer@skystarbio-pharmaceutical.com

Crocker Coulson, President

CCG Elite Investor Relations

Tel: +1-310-231-8600 x 122

Email: crocker.coulson@ccgir.com

Leslie Richardson, Financial Writer

CCG Elite Investor Relations

Tel: +1-310-231-8600 x 122

Email: leslie.richardson@ccgir.com

Source: Skystar Bio-Pharmaceutical Co., Ltd.
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