HARBIN, China, Jan. 12 China Sky OneMedical, Inc. ("China Sky One Medical" or "the Company") (Nasdaq: CSKI), aleading fully integrated pharmaceutical company developing and producingover-the-counter drugs in the People's Republic of China ("PRC"), todayannounced that the Company's AMI Diagnostic Kit for early detection of heartdisease was recognized by the National Development and Reform Commission (NDRC)as a "National Innovation Project," a designation given to innovative projectsin key high technology industries.
The AMI Diagnostic Kit, which was developed by China Sky One Medical'swholly owned subsidiary, Harbin First Bioengineering Company, was nominatedfor the prestigious designation in early 2009, when the NDRC began theselection process for National Innovation Projects. Following a rigorousone-year review and evaluation by the NDRC, the Company's AMI Diagnostic Kitwon the title because it represents leading global technology, has promisingmarket potential, and because the developer owns all the related intellectualproperty rights. The official document for the title is NDRC No. 2561.
"We are inspired by the fact that our AMI Diagnostic Kit has beenrecognized as a National Innovation Project," said Mr. Yan-Qing Liu, Chairmanand CEO of China Sky One Medical. "We are committed to becoming an industryleader in the research and development of high technology medical products andnow have nine new diagnostic kits under development, which we believe willenhance our competitive position and contribute to our future growth."
Recipients of the National Innovation Project designation will receive asubsidy from the Chinese government of RMB 6.00 million (approximately US$0.88 million) in 2010. In addition, National Innovation Projects receive apreferential income tax rate of 15%, versus the regular tax rate of 25%.Currently, three of China Sky One Medical's wholly-owned subsidiaries, HarbinTDR Medical Science and Technology, Heilongjiang Tianlong Pharmaceutical, andHarbin First Bioengineering, receive a preferential income tax rate of 15%because they have been granted the High-Technology Enterprise Certificate bythe provincial government in Heilongjiang Province, which became effectiveJanuary 1, 2009.
The AMI Diagnostic Kit, which entered the market in China in 2007, is usedfor early diagnosis of Myocardial Infarction (MI), also known as heart disease.The testing kit requires users to place a blood sample on a marker, and apositive (+) or negative (-) sign will result, showing whether the user shouldconsult his or her doctor for further testing. More often than not, heartdisease is likely to strike people who are overweight, smoke, or suffer fromdiabetes. Statistics show that over 60 million patients in China currentlysuffer from heart disease, with approximately eight million new cases eachyear. Recent medical studies have shown that heart failure and heart attacksare increasing among the younger adults in China, the result of severalfactors, including the fast pace of a more modern life style and increasedpressure from work and school. Using the AMI Diagnostic Kit for earlydetection of heart disease can help to reduce these statistics. For the firstnine months of 2009, the AMI Diagnostic Kit accounted for approximately 7.5%of the Company's total revenues.
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company.The Company engages in the manufacturing, marketing and distribution ofpharmaceutical, medicinal and diagnostic products. Through its wholly-ownedsubsidiaries, Harbin Tian Di Ren Medical Science and Technology Company("TDR"), Harbin First Bio-Engineering Company Limited ("First"), HeilongjiangTianlong Pharmaceutical, Inc. ("Tianlong") and Peng Lai Jin ChuangPharmaceutical Company ("Jin Chuang") the Company manufactures and distributesover-the-counter pharmaceutical products, which make up its major revenuesource. For more information, visit http://www.cski.com.cn .
Safe Harbor Statement
Certain of the statements made in the press release constituteforward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995. These statements can be identified by the useof forward-looking terminology such as "believe," "expect," "may," "will,""should," "project," "plan," "seek," "intend," or "anticipate" or the negativethereof or comparable terminology. Such statements typically involve risks anduncertainties and may include expectations of future growth or informationregarding the recognition of AMI Diagnostic Kit as a National InnovationProject by NDRC. Actual results could differ materially from the expectationsreflected in such forward-looking statements as a result of a variety offactors, including the risks associated with the effect of changing economicconditions in The People's Republic of China, variations in cash flow,reliance on collaborative retail partners and on new product development,variations in new product development, risks associated with rapidtechnological change, and the potential of introduced or undetected flaws anddefects in products, and other risk factors detailed in reports filed with theSecurities and Exchange Commission from time to time.For more information, please contact: Company Contact: China Sky One Medical, Inc. Mr. Stanley Hao, CFO Phone: +86-0451-8703-2617 Email: email@example.com Investor Relations Contact: CCG Investor Relations Mr. Crocker Coulson, President Phone: +1-646-213-1915 Email: firstname.lastname@example.org Web: http://www.ccgirasia.com Mr. R. Micchelli, Sr. Financial Writer Phone: +1-646-454-4516 Email: email@example.com
SOURCE China Sky One Medical, Inc.