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Biostar Pharmaceuticals, Inc. Expands Rural Network by Over 21% in Third Quarter 2010; Brings Total Number of Locations to 8,500
Date:10/25/2010

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XIANYANG, China, Oct. 25 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (Nasdaq: BSPM) ("Biostar" or "the Company"), a Xianyang-based manufacturer of a leading over-the-counter Hepatitis B medicine, Xin Aoxing Oleanolic Acid Capsules ("Xin Aoxing Capsules"), and a variety of pharmaceutical products, today announced it has expanded its rural distribution network in the third quarter ended September 30, 2010 to 8,500 locations, an increase of approximately 21.4% from the second quarter ended June 30, 2010.

Biostar sees significant opportunities created by the state-implemented New Rural Cooperative Medical System to expand its rural distribution network. As of September 30, 2010, 10 of the Company's products were available for sale in approximately 8,500 rural retail locations across 22 provinces. Based on current internal projections, management expects the Company's rural retail distribution to double over the next few years. Sales to rural markets grew 66% in the first half of 2010 to $4.8 million, representing approximately 15% of total sales.

"We continue to expand our rural distribution network aggressively," commented Ronghua Wang, Chairman and Chief Executive Officer of Biostar. "With the PRC government allocating nearly $5.6 billion to expand basic medical services to all 900 million rural farmers by 2010, Biostar is well positioned to capitalize on this secular growth opportunity. We see many more years of healthy growth as more Chi
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SOURCE Biostar Pharmaceuticals, Inc.
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