Biostar Pharmaceuticals, Inc. to Launch Xin Aoxing Oleanolic Acid Capsules in Beijing and Shanghai

Wednesday, December 30, 2009 Drug News
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XIANYANG, China, Dec. 29 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 it has completed preparation to launch its flagship Xin AoxingOleanolic Acid ("Xin Aoxing") Capsules for the treatment of Hepatitis B inBeijing and Shanghai in early January 2010.

Management anticipates approximately $9 million in incremental revenuesduring 2010 from these two new markets with average gross margins ofapproximately 72%. Biostar launched its marketing and operational initiativesfor selling Xin Aoxing Capsules in these markets during December, includingstaff recruitment, establishing sales offices, engaging distributors anddeploying advertisement. The Company launched Xin Aoxing Capsules in theTianjin market in November 2009, which has already generated $0.5 million inrevenues during its first month. Beijing, Shanghai, and Tianjin are three ofthe largest markets in China with a total population estimated at 50 million,and Biostar will leverage both distributors and direct sales in these threemarkets.

"We are very pleased with the progress we have made to expand our XinAoxing Capsules into Beijing and Shanghai. Our focus on the Tianjin, Beijingand Shanghai markets is part of a strategy to develop high-populationterritories along with continued expansion of our rural networks," said Mr.Wang Ronghua, Chairman and CEO of Biostar Pharmaceuticals, Inc. "2009 was akey turning point for our Company as we completed several key growthinitiatives and built a foundation for 2010. The success of our marketingstrategy for our Xin Aoxing Capsules helped us achieve significant growth infirst three quarters of 2009. Our focus on expanding product sales to therural area has also enabled us to gain incremental market share, which webelieve will contribute meaningfully to future growth."

As of December 11, 2009, Biostar also reported a total of 5,010 salesoutlets in its New Rural Cooperative Medical Drug Supply Network, exceedingits target to cover 5,000 sales outlets by the end of 2009.

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 Aoxing 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, Biostarmanufactures two broad-based OTC products, two prescription-basedpharmaceuticals and thirteen nutrients. The Company has adopted internationalstandards and is in the process 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 September 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: +1-914-669-5340 (U.S.) Email: Web:

SOURCE Biostar Pharmaceuticals, Inc.

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