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China Sky One Medical, Inc. Announces Record Fourth Quarter and Fiscal Year 2008 Results
Date:4/15/2009

ng Liu, Chairman and CEO of China Sky One Medical, Inc. "As part of our strategy, we made a number of important strategic acquisitions that contributed to our growth and signed several distribution agreements for our top selling products. We also continued to build and enhance our brand awareness through a successful marketing and advertising campaign that helped to increase demand for our products."

Fourth Quarter 2008 Results

China Sky One's total revenues increased 104.0% in the fourth quarter to $26.0 million. This was mainly a result of the Company's continued efforts to develop and enhance its sales distribution channels and to insure that its sales agents and products are visible by those making or influencing key purchasing decisions.

Gross profit in the fourth quarter was $19.3 million, an increase of 95.2% on a year-over-year basis. Gross margin decreased to 74.4% of total revenues from 77.7% in the fourth quarter of 2007. The decrease was attributable to lower unit selling prices in 2008, by which the Company aims to maintain the competitiveness in the PRC markets. However, the Company was able to negotiate a lower purchase price from its suppliers.

Operating expenses in the fourth quarter of 2008 were $10.4 million, up 110.0% from $4.9 million in the fourth quarter of 2007. The increase was primarily the result of higher selling, general and administrative expenses associated with the Company's sales growth, and an increase in R&D spending during the quarter. Research and development expenses were $2.7 million in the fourth quarter, compared to $1.4 million in the fourth quarter of 2007.

Operating income was $8.9 million, representing an 80.4% increase from $4.9 million in the fourth quarter of 2007. Operating margin was 34.4%, compared to 38.9% in the fourth quarter of 2007.

Provision for income taxes was $2.1 million in the fourth quarter of
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SOURCE China Sky One Medical, Inc.
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