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Tiens Biotech Group (USA) Reports Fourth Quarter and Twelve-Month Results

Saturday, March 29, 2008 General News J E 4
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NEW YORK, March 28 Tiens Biotech Group (USA), Inc.("the Company" or "Tiens"), (AMEX: TBV), http://www.tiens-bio.com , announcedfinancial results for the fourth quarter and twelve months ended December 31,2007.

Revenue for the fourth quarter of 2007 was $13.3 million compared to $16.6million for the fourth quarter of 2006.

Net income for the fourth quarter of 2007 was $3.9 million, or $0.05 pershare, compared to net income of $5.9 million, or $0.08 per share for thefourth quarter of 2006.

Revenue for the twelve months ended December 31, 2007 was $54.9 million,compared to $66.8 million for the twelve months ended December 31, 2006.

Net income for the twelve months ended December 31, 2007 was $18.6 million,or $0.26 per share, compared to $26.3 million, or $0.37 per share for thetwelve months ended December 31, 2006.

Revenue by Region

For the fourth quarter of 2007, revenue in China was $6.7 million comparedto $6.8 million for the fourth quarter of 2006. For the twelve months endedDecember 31, 2007, revenue in China was $22.5 million, compared to $27.1million for the twelve months ended December 31, 2006.

Revenue for 2006 benefited from a special promotion conducted in the thirdquarter of the year for distributors in China, which increased sales. Nosimilar promotion was held during 2007, which contributed to the decrease inrevenue for the period. In addition, the application for a direct sellinglicense in China is still pending. Until the application is approved, TianshiEngineering will continue to sell Tiens' products through its branches,affiliated companies and chain stores in China.

For the fourth quarter of 2007, international revenue was $6.6 million,compared to $9.8 million for the fourth quarter of 2006. For the twelvemonths ended December 31, 2007, international revenue was $32.4 million,compared to $39.7 million for the comparable period of 2006. This decreasemainly reflects a general sales weakness, particularly to countries in Africaduring the second quarter of 2007.

International sales were also impacted by the General Administration ofQuality Supervision, Inspection and Quarantine's (AQSIQ) announcement inAugust 2007 of an ongoing national campaign in China against unsafe food andsubstandard products. As a result of this campaign by the AQSIQ, there hasbeen a general slow-down in international sales and several of Tiens'international affiliates being unable to receive sufficient quantities ofproducts to meet their demand. However, it is important to note that to date,no problems have been identified with any of Tiens' products. The campaign,which was originally scheduled to finish at the end of 2007, is currentlyscheduled to continue throughout 2008.

In December 2007, Tiens entered into an agreement to acquire Tianjin TiensLife Resources Co., Ltd. (Life Resources), a company which is currentlyconstructing research and development, manufacturing and logistic facilities,as well as administrative offices totaling approximately 420,000 square metersin Tianjin, China. The facilities are located 7 kilometers from Tiens'current headquarters in Tianjin. The acquisition closed on March 13, 2008.Tiens estimates that the budget for completion of the Life Resources projectwill be approximately $220 million, including $64 million already paid toacquire all of the registered share capital of Life Resources. The Companyplans to move its headquarters to these new facilities upon completion.

Tiens has developed and produces 33 nutrition supplement products, whichinclude wellness products and dietary nutrition supplements. During 2007, theCompany phased out production of its personal care line of products, which hadnot been a material part of its business, to focus on its wellness productsand dietary supplements which offer greater future opportunities.

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