China Biologic Products Enters Into Agreement to Acquire 35% Interest in Xi'an Huitian Blood Products Co., Ltd. and Introduces Preliminary Guidanc...(ian. China Biologic believes that it wil...)

Date:10/16/2008

ian. China Biologic believes that it will be able to secure the large majority of the financing required for the two acquisitions from domestic bank facilities and available cash resources. Taibang's other shareholder, Shandong Institute of Biological Products, who owns approximately 17% of Taibang, contractually agreed with China Biologic's wholly-owned subsidiary, Logic Express, to allocate to Logic Express all of the economic benefits (i.e., revenues and net income) and burdens (i.e., expenses, losses and liabilities) of the 35% interest in Huitian that will be acquired by Taibang. Shandong Institute of Biological Products will not contribute any amounts toward the financing of Huitian. The remaining 65% interest in Huitian is owned by Shaanxi Power Construction Group Corporation ("SPCGC") in China, a power construction company in Shaanxi Province. According to the terms of the contract, both parties have agreed not to sell their equity interests in Huitian to a third party within the next five years, giving each other the right of first refusal thereafter. China Biologic plans to expand Huitian's plasma collection capacity in Shaanxi Province and eventually acquire the remaining interest from SPCGC if such opportunity exists.

Company Updates Business Outlook

Management expects that the acquisitions of Dalin (Qianfeng) and Huitian will accelerate the Company's geographical expansion, diversify its customer base, enhance its technological capabilities or competitive advantages and serve to fulfill its planned expansion into the leading biopharmaceutical company in China. China Biologic has targeted combined revenue for 2008 to be in the range of $48 million to $50 million and combined net income to be between $9 million to $10 million, including only a portion of the 4th quarter operations from the two acquisitions. Assuming the full year consolidation of the two acquisitions, management estimates revenues for 2009 will be in the range of $90 million
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SOURCE China Biologic Products, Inc. Copyright©2008 PR Newswire. All rights reserved

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