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China Aoxing Pharmaceutical Company Signed Definitive Acquisition Agreement to Acquire Shijiazhuang Lerentang Pharmaceutical Company, Ltd.
Date:3/12/2008

Program, and 101 products entered in the national OTC medicine book. In 2004, LRT passed GMP production certificates for all of its production lines.

"We are excited to gain significant progress in the LRT transaction and believe this acquisition will further support our position as a leading, diversified pain management products company," commented Zhenjiang Yue, Chairman and CEO of China Aoxing. "With LRT's integration, we will execute a key part of our business strategy by acquiring an established brand, profitable business, and synergistic product portfolio with significant commercialization value. LRT has a number of high value pain management products, including its flagship product, Zhong Tong An Capsules, that have not reached their full market potential."

Mr. Yue continued, "We will move quickly to the integration phase of this transaction, ramp up and optimize production of LRT's most promising products as well as rejuvenate its existing sales and marketing organization. We believe this acquisition will be synergistic, as it will allow China Aoxing to leverage its existing marketing power and operating resources for new product launches expected out of our pipeline over the next 12 to 18 months. We look forward to the many benefits associated with this acquisition and believe it will provide us with a strong platform for sales and profitability growth in the future."

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC Bulletin Board: CAXG) is a pharmaceutical company in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain management products. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, the Company has the largest product pipeline and largest manufacturing facility (1.2 million sq. ft.) for highly regulated narcotic medicines, addressing a very under-served and fast-growing market
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SOURCE China Aoxing Pharmaceutical Company, Inc.
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