China-Biotics, Inc. Reports Fourth Quarter and Full Year Fiscal 2008 Financi...(US Dollars) Three...)

Three months ended March 31, Years ended March 31,

2008 2007 2008 2007

(unaudited) (unaudited)

Net sales 12,689,489 $8,376,788 $42,321,111 $30,609,941

Cost of sales (4,270,441) (2,390,986) (12,310,092) (8,910,633)

Gross profit 8,419,048 5,985,802 30,011,019 21,699,308

Operating expenses:

Selling expenses (1,873,372) (1,236,525) (6,869,109) (4,502,687)

General and

administrative expenses (1,670,930) (890,476) (4,826,473) (2,265,220)

Total operating expenses (3,544,302) (2,127,001) (11,695,582) (6,767,907)

Income from operations 4,874,746 3,858,801 18,315,437 14,931,401

Other income and

expenses:

Other income 3,973,432 81,159 4,163,438 223,401

Other expenses 404,147 26,528 -- (62,948)

Total other income

(expenses) 4,377,580 107,688 4,163,438 160,453

Income before taxes 9,252,326 $3,966,489 22,478,875 15,091,854

Provision for income

taxes (1,264,197) (1,120,756) (4,936,631) (4,186,868)

Net income 7,988,129 $2,845,733 17,542,244 $10,904,986

Earnings per share:

Basic $0.47 $0.17 $1.03 $0.64

Diluted $0.26 $0.17 $0.80 $0.64

Weighted average shares

outstanding:

Basic 17,080,000 17,080,000 17,080,000 17,080,000

Diluted 17,719,269 17,080,000 17,719,269 17,080,000

CHINA-BIOTICS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Audited, amounts expressed in US Dollars)

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