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Skystar Bio-Pharmaceutical Announces Second Quarter 2007 Results
Date:8/19/2007

lion as of December 31, 2006.

Business Outlook

Skystar Bio-Pharmaceutical has received approval for 49 new veterinary medicines to date in 2007, and expects to receive approval for 51 additional veterinary medicines by year end. Skystar has also opened over 150 new Skystar franchise stores to date and intends to have 300 operating franchise stores by the end of 2007. The Company has recently begun the construction of the second phase of its new facilities which includes a Good Manufacturing Practice compliant biopharmaceutical workshop for the production of microorganisms and vaccines. Capital expenditures for the new facility are estimated at $2.5 million. Skystar reaffirms its outlook for full year 2007 for revenue to be in the range of $12.0 million to $14.0 million and expects non-GAAP net income to be in the range of $2.5 to $3.0 million.

"We have done a tremendous job laying the foundation for our growth strategy in the first half of 2007. We obtained approval for 49 new veterinary medicines and successfully launched 10 of them in the market. Our research and development efforts have contributed to several new high demand products to address the blue ear disease epidemic. We have also successfully expanded our distribution network and opened over 150 Skystar franchise stores," commented Mr. Lu. "We intend to continue focusing our efforts to aggressively expand our market share throughout the rest of 2007. We will continue launching new products, expanding our distribution network and opening new Skystar franchises stores as we build a high quality national brand committed to improving animal health."

Use of Non-GAAP Financial Measures

GAAP results for the fourth quarter and full years ended December 31, 2006 and December 31, 2005 include certain non-cash debt financing and other expenses related to the Company's convertible notes and warrants. To supplement the Company's condensed consolidated financial statements presented on a G
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SOURCE Skystar Bio-Pharmaceutical Co.

Copyright©2007 PR Newswire.

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