China Biopharma, Inc. Announces New Plan of Operation

Wednesday, November 21, 2007 General News
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HANGZHOU, China, Nov. 20 China Biopharma, Inc.(OTC Bulletin Board: CBPC) today announced its new plan of operation to takecloser control and to better improve its current operation results. Thecompany also plans to move away from the increasingly competitive and lowmargin vaccine business, and to enter new specialty pharmaceutical products.

"We plan to take more control on the available cash in out subsidiariesand move into higher market potential and higher margin specialtypharmaceutical products," says Peter Wang, CEO and Chairman of Board. "And weare negotiating with a few global vaccine manufacturers now for carrying theirhigher margin products, in order to avoid direct competitions with othermanufacturers."

Recent changes in vaccine sectors have resulted in more vaccinemanufacturers entering into low margin vaccine business such as flu vaccine,thus creating severe competition among, and squeezed profit margin of, vaccinedistributors such as China Biopharma. Besides moving away from the low marginvaccine business, the company also starts to enter specialty pharmaceuticalproducts such as the recently released anti-viral products.

China Biopharma has most of its operation in China. Working to take directcontrol on subsidiaries' operation and financial management, the company plansto increase its shareholding in China Zhejiang Tianyuan Biotech Co., Ltd., andeventually to have 100% control and ownership in this joint venture. Withinternally available resources, there would be no need to raise additionalcapital to complete the transactions. This is expected to improve currentperformance and increase operation stability.

"This new direction is expected to preserve available cash position andgive us more operation flexibility," says Chunhui Shu, the new interim ChiefFinancial Officer. "In view of improvement and progress on our currentoperation results, we have made this plan to take more effective steps tostrengthen our control over operating subsidiaries, preserve cash, applyavailable resources to, and refocus on higher margin, less competitiveproducts with greater market potential."

Safe Harbor Statement

Some of the statements here discuss future events and developments,including the Company's future business strategy and its ability to generaterevenue, income and cash flow, and should be considered forward-lookingstatements within the meaning of the Private Securities Litigation Reform Actof 1995. These "forward-looking" statements can generally be identified bywords such as "expect," "anticipate," "believe," "estimate," "intend," "plan,"and similar expressions. These statements involve a high degree of risk anduncertainty that exists in the Company's operations and business environmentand are subject to change based on various factors that could cause actualCompany results, performance, plans, goals and objectives to differ materiallyfrom those contemplated or implied in these forward-looking statements. Actualresults may be different from anticipated results for a number of reasons,including the Company's new and uncertain business model, uncertaintyregarding acceptance of the Company's products and services and the Company'slimited operating history.CONTACT: China Biopharma, Inc. Tel: +1 (609) 651-8588 Attn. George Ji

SOURCE China Biopharma, Inc.

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