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Pursuant to the October 2009 Contract, Jiangbo has purchased the right touse a 385,800 square meter parcel of state-owned construction land for aperiod of 50-years at a purchase price of RMB115,764,000 (approximatelyUS$16,983,000). The Company plans to build a new factory in this area for theproduction of future new self-developed and acquired drugs. On March 31, 2010,the October 2009 Contract was amended to eliminate the previous standardrequirements that (i) total investment shall be no less than RMB868,200,000(approximately US$127,365,000 ); and (ii) the investment intensity shall be noless than RMB3,000 per square meter. All the other provisions of the October2009 Contract remain unaffected and in full force.
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"We are happy to announce the elimination of the investment requirementsin the October 2009 Contract and appreciate the support of the Land andResources Bureau of Laiyang City for Jiangbo's future plans in the region. Theamended terms provide the Company with much more financial flexibility in ourconstruction and investment plans, as well as reduce our over all capitalexpenditure commitment in the coming years," commented Mr. Wubo Cao, theCompany's Chief Executive Officer. "Planning for the new land is underway andwe look forward to providing an update in the coming quarters."
About Jiangbo Pharmaceuticals, Inc.
Jiangbo Pharmaceuticals is engaged in the research, development,production, marketing and sales of pharmaceutical products in China. TheCompany's operations are located in Eastern China in an Economic DevelopmentZone in Laiyang City, Shandong Province. Jiangbo produces both western andChinese herbal-based medical drugs in tablet, capsule, granule, syrup andelectuary (sticky syrup) form. For additional information, please visit theCompany's website ( http://www.jiangbopharma.com ).
Safe Harbor Statement
Certain statements in this press release that are not historical facts are"forward-looking statements" within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Such statements are not guarantees of futureperformance and are subject to risks and uncertainties that could cause theCompany's actual results and financial position to differ materially fromthose included within the forward-looking statements. Forward-lookingstatements involve risks and uncertainties. Actual results may differmaterially from anticipated or predicted results, and reported results shouldnot be considered as an indication of future performance. The potential risksand uncertainties include, among others, the Company's ability to obtain rawmaterials needed in manufacturing, anticipated sales volume growth of themedicines, the continuing employment of key employees, the failure risksinherent in testing any new drug, the possibility that regulatory approvalsmay be delayed or become unavailable, patent or licensing concerns that mayinclude litigation, direct competition from other manufacturers and productobsolescence. More information about the potential factors that could affectthe Company's business and financial results is included in the Company'sfilings, available via the United States Securities and Exchange Commission.For more information, please contact: Jiangbo Pharmaceuticals, Inc. Ms. Elsa Sung, CFO Phone: +1-954-903-9378 x2 Email: [email protected] Web: http:// www.jiangbopharma.com CCG Investor Relations Ms. Lei Huang, Account Manager Phone: +1-646-833-3417 Email: [email protected] Web: http://www.ccgirasia.com Mr. Crocker Coulson, President Phone: +1-646-213-1915 Email: [email protected]
SOURCE Jiangbo Pharmaceuticals, Inc.
