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Lotus Pharmaceuticals Announces Second Quarter 2008 Results
Date:8/18/2008

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NET INCOME $2,179,909 $3,041,525 $3,176,008 $3,878,826

COMPREHENSIVE INCOME:

NET INCOME $2,179,909 $3,041,525 $3,176,008 3,878,826

OTHER COMPREHENSIVE

INCOME:

Unrealized foreign

currency translation

gain 1,587,538 248,403 $3,041,741 371,920

COMPREHENSIVE INCOME $3,767,447 $3,289,928 $6,217,749 $4,250,746

NET INCOME PER COMMON

SHARE:

Basic $0.05 $0.07 $0.08 $0.09

Diluted $0.05 $0.07 $0.07 $0.09

WEIGHTED AVERAGE COMMON

SHARES OUTSTANDING:

Basic 42,352,139 41,389,362 42,194,048 41,297,531

Diluted 48,099,257 44,389,262 47,941,166 44,297,531

See notes to unaudited consolidated financial statements

F-4

LOTUS PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30, December 31,

2008 2007

ASSETS (Unaudited)

CURRENT ASSETS:

Cash $3,401,444 $4,557,957

Accounts receivable, net of

allowance for doubtful accounts

and sale returns 20,786,631 20,430,827

Inventories, net of reserve for

obsolete inventory 7,086,895 3,410,739

Prepaid expenses 284,819 1,009,382

Deferred debt costs 398,067 29,340

Total Current Assets 31,957,856 29,438,245

PROPERTY AND
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SOURCE Lotus Pharmaceuticals, Inc.
Copyright©2008 PR Newswire.
All rights reserved

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