BMP Sunstone Reports Third Quarter 2008 Financi...(Common Stock at $5.00per share. Net proc...)

Third Quarter 2008 Business Update

On August 18, 2008, BMP Sunstone announced that Sunstone received a production license from the Chinese State Food and Drug Administration ("SFDA") to manufacture and market GoodBaby Multivitamin Granules, a multivitamin formula for infants and children in China. The Company expects to launch the product at the end of the fourth quarter of 2008.

On July 18, 2008, BMP Sunstone signed a non-binding letter of intent to acquire 75 percent of Zhangjiakou Shengda Pharmaceutical Co., Ltd ("Shengda") for up to RMB 30.0 million (approximately $4.4 million). The Company continues to expect to complete the transaction by the end of the fourth quarter of 2008. Terms of the acquisition are not yet finalized, as completion is subject to a number of conditions, including finalization of due diligence and definitive documentation. The Company intends to use the cash and notes receivable available at Sunstone to fund the acquisition. The letter of intent also includes a six-month exclusivity clause.

On July 4, 2008, the Company completed its acquisition of 63.3 percent of Rongheng, a pharmaceutical distribution company which distributes over 400 pharmaceutical products to more than 140 top-tier hospitals and 1,000 retail pharmacies in Shanghai. Through this acquisition, BMP Sunstone gained direct coverage of 80 percent of the top-tier hospitals and 40 percent of the retail pharmacies in Shanghai. Rongheng was co-founded in 1999 by Orient International (Holding) Co., one of the largest foreign trade enterprises in China.

On June 20, 2008, BMP Sunstone received a letter from the SFDA approving the new brand name for 0.8mm Propess, which has wider usage than the 1.1 mm formulation. Earlier in the quarter, the Co
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