Biostar Pharmaceuticals, Inc. Significantly Increases Rural Supply Network to 3,500 Sales Outlets

Wednesday, November 4, 2009 General News
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XIANYANG, China, Nov. 3 BiostarPharmaceuticals, Inc. (OTC Bulletin Board: BSPM) ("Biostar" or "the Company"),a Xianyang-based developer, manufacturer and supplier of pharmaceuticalproducts and medical nutrients addressing a variety of diseases and conditions,today announced that it has expanded its rural supply network to 3,512 salesoutlets as of September 30, 2009. These locations have contributedapproximately $7.4 million in revenues year-to-date. The company anticipatesmeeting its goal of launching 5,000 rural sales outlets by the end of 2009 andplans to expand the network to include 10,000 outlets by 2011 throughout 6provinces including Shaanxi, Gansu, Henan, Hebei, Liaoning, and Shandong.

A sales outlet is a small pharmacy with an average of 600 square feet in arural village, which supplies residents with the most commonly used drugs.Biostar provides free training to the staff of the sales outlets and currentlysupplies 5 drugs to each location, including Danshen Granules, a drug whichaddresses coronary heart disease, myocardditis and angina pectoris and islisted in the Essential Drug List. Average annual revenue generated from eachsales outlet is approximately $2,000. The Company's goal is to build thelargest regional pharmaceutical supply network in its targeted rural areas andprovide patients with the most efficient and affordable comprehensivepharmaceutical services.

"We are pleased to announce the progress we have made with our ruralsupply network which we expect to contribute more than $10 million in revenuesduring 2010. We will continue to invest in this expansion plan, which is oneof the key components of Biostar's long-term growth strategies. In addition tomedicines, we will also supply nutraceutical products from our portfoliothrough the rural supply network to drive incremental revenues. With thegovernment's support to improve healthcare systems for rural areas, inaddition to the increase in disposable income and health awareness of ruralpopulation, the sales of our products through this channel is expected to growrapidly in the coming years," said Mr. Wang Ronghua, Chairman and CEO ofBiostar Pharmaceuticals, Inc.

About Biostar Pharmaceuticals, Inc.

Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary inChina, develops, manufactures and markets pharmaceutical and medical nutrientproducts for a variety of diseases and conditions. The Company's most popularproduct is its Xin Ao Xing Oleanolic Acid Capsule, an over-the-counter ("OTC")medicine for chronic hepatitis B, a disease affecting approximately 10% of theChinese population. In addition to its hepatitis product, Biostar manufacturestwo broad-based OTC products, two prescription-based pharmaceuticals and tennutrients. The Company has adopted international standards and is in theprocess of applying for two patents.

Safe Harbor

Certain statements in this release concerning our future growth prospectsare forward-looking statements, within the meaning of Section 27A of the U.S.Securities Act of 1933, as amended, and Section 21E of the U.S. SecuritiesExchange Act of 1934, as amended, which involve a number of risks anduncertainties that could cause actual results to differ materially from thosein such forward-looking statements. The risks and uncertainties relating tothese statements include, but are not limited to, risks and uncertaintiesregarding the success of our investments, risks and uncertainties regardingfluctuations in earnings, our ability to sustain our previous levels ofprofitability including on account of our ability to manage growth, intensecompetition, wage increases in China, our ability to attract and retain highlyskilled professionals, time and cost overruns on fixed-price, fixed-time framecontracts, client concentration, our ability to successfully complete andintegrate potential acquisitions, withdrawal of governmental fiscal incentives,political instability and regional conflicts and legal restrictions on raisingcapital or acquiring companies outside China. Additional risks that couldaffect our future operating results are more fully described in our UnitedStates Securities and Exchange Commission filings including our S-1 dated June27, 2008, our Quarterly Report on Form 10-Q for the quarter ended June 30,2009, our 10-K for the year ended December 31, 2008, and other recent filings.These filings are available at . We may, from time to time,make additional written and oral forward-looking statements, includingstatements contained in our filings with the Securities and ExchangeCommission and our reports to shareholders. We do not undertake to update anyforward-looking statements that may be made from time to time by or on ourbehalf.For further information, contact: Ms. Elaine Zhao, CFO Tel: +1-626-456-2789 Email: John Mattio HC International, Inc. Tel: US +1-914-669-5340 Email: Web:

SOURCE Biostar Pharmaceuticals, Inc.

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