China-Biotics, Inc. Reports Fourth Quarter and Full Year Fiscal 2008 Financi...(422113 (321043) NET CASH PRO...)

NET CASH PROVIDED BY OPERATING

ACTIVITIES 19,361,475 10,007,159

CASH FLOWS USED IN INVESTING

ACTIVITIES

Sales proceeds from disposal of plant

and equipment -- 14,793

Purchase of fixed assets and payments

for leasehold improvements (10,302,291) (1,485,789)

NET CASH USED IN INVESTING ACTIVITIES (10,302,291) (1,470,996)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of convertible

bond 25,000,000 --

Repayment on loan from shareholders -- (2,280,687)

NET CASH PROVIDED BY/(USED IN)

FINANCING ACTIVITIES 25,000,000 (2,280,687)

Effect of exchange rate changes on

cash 3,259,239 895,737

NET INCREASE IN CASH AND CASH

EQUIVALENTS BALANCES 37,318,423 7,151,213

CASH AND CASH EQUIVALENTS BALANCES AT

BEGINNING OF PERIOD 26,992,025 19,840,812

CASH AND CASH EQUIVALENTS BALANCES AT

END OF PERIOD 64,310,448 26,992,025

CHINA-BIOTICS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL DATA

Non-GAAP Net income Q4 2008 Q4 2007

Net Income (Loss) and Diluted EPS Net Income Net Income

Adjusted Amount 4,622,129 $2,845,734

Adjustments

Non-cash gains from change in

fair value of convertible bonds $3,366,000 --

Amount per consolidated statement of

operations $7,988,129
'/>"/>