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China Sky One Medical to Jointly Launch Adult Stem Cell Research Enterprise
Date:12/16/2011

HARBIN, China, Dec. 16, 2011 /PRNewswire-Asia/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (NASDAQ: CSKI), a leading fully integrated pharmaceutical company in the People's Republic of China ("PRC"), today announced that its wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company ("TDR"), signed an agreement (the "Agreement") to jointly set up a new company, Harbin Tian Xin Biological Engineering Ltd.

Harbin Tian Xin Biological Engineering Ltd. is being organized to perform the storage of umbilical cord stem cells. It is also to perform the clinical applications of bone marrow stem cells, intercord mesenchymal stem cells and other human stem cells.

"As we have been involved in this area of research for the past several years, we are optimistic as to the potential of the stem cell storage and application sector. We are pleased to attract outside investors to this new venture to strengthen our capability in terms of technology and capital," commented Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical. "We expect that Harbin Tian Xin Biological Engineering Ltd. will be formally put into operation in the first quarter of 2012 and new products and services might be introduced into the market as early as year-end 2012." Mr. Liu added.

On December, 12, 2011, TDR entered into an Agreement with three parties, the No. Four Hospital Associated with Harbin Medical Science University, Harbin Zheng Yuan Construction Group and Mr. Xiao-wei Zhang, pursuant to which they will jointly set up the new company for a total capital commitment of RMB 230.0 million (approximately around $36.3 million). TDR shall invest RMB 90.0 (approximately around $14.2 million) for an ownership stake of 39%. The four parties agreed in the Agreement that 65% of the committed capital is payable within 15 days upon execution of t
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SOURCE China Sky One Medical, Inc.
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