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Lotus Pharmaceuticals, Inc. Reports Second Quarter 2009 Financial Results
Date:8/14/2009

e we will have consistent growth for the rest of the year mainly because the majority of drugs we sell to our national network are covered under the National Health Insurance Policy, and our continuous efforts to improve operational efficiency," said Mr. Liu. "While we are making progress in expanding our production capacity in Inner Mongolia, we believe we are on track to achieve the earnings guidance we provided previously."

    (1) The 2008 net revenues referenced above have been adjusted for
        correction. While the total net revenues remain unchanged in
        comparison with the previously reported numbers, the allocation of
        three revenue segments is revised as follows:

                  For the Three Months Ended    For the Six Months Ended
                            June 30,                  June 30,
                              2008                      2008
    NET REVENUES:
       Wholesale           $14,235,345                $22,672,643
       Retail                3,644,530                  5,661,077
       Other revenues        1,505,737                 2,761,069

    Total Net Revenues     $19,385,612                $31,094,789

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 cerebro-cardiovascular disease, asthma, and diabetes. More than 8,000 products are sold by Liang Fang directly and indirectly through its national sales channels to hospitals, clinics and drugs stores in 30 provinces.

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