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Lotus Pharmaceuticals, Inc. Announces 2010 Growth Strategy
Date:10/19/2009

Government hospitals have been Lotus's important direct sales channels. Any additional hospitals to increase the Company believes will have high entry barriers. Lotus plans to attempt to add new hospital channels in 2010.

Increase Quality Drugs Offering. Lotus's brand quality stems from its commitment to quality and efficacy of products. In case State Food and Drug Administration ("SFDA") is slow in approving any of the drugs in the pipeline, Lotus will attempt to produce drugs produced by third parties and sell them through its national sales force and network. By the end of 2010, Lotus currently intends to sell approximately 20 types of prescription drugs including its current 15 prescription drugs. Developing drugs to treat cardio-cerebrovascular, asthma and diabetes diseases remain the strategic focus in Lotus's pipeline development.

Geographic and Production Expansion. Production expansion is a part of Lotus's long term plan to tailor to its demand from drugs development. Lotus currently intends to start building the main body of the new facility in Inner Mongolia in 2010 subject to obtaining financing and self-generated capital. As part of the plan, a wholesales center would be established in Inner Mongolia to facilitate the growing market demand for pharmaceutical drugs in Inner Mongolia and five Northwestern provinces.

About Lotus Pharmaceuticals, Inc. ( http://www.lotuspharma.com )

Lotus Pharmaceuticals, Inc. is a growing developer and producer of prescription drugs and a licensed national seller of pharmaceutical items in the People's Republic of China. Lotus operates Liang Fang Pharmaceutical, Ltd. and En Ze Jia Shi Pharmaceutical, Ltd. Lotus's current drug development pipeline is focused on the treatment of cardio-cerebrovascular disease, asthma, and diabetes.

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