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Tianyin Pharmaceutical Co., Inc. Announces Second Quarter 2008 Financial Results
Date:2/14/2008

iod due to their continuous efforts in penetrating the market. The Company signed six sizable regional distributors who facilitated the reach of Tianyin's products into previously inaccessible market regions. Tianyin increased its sales force at the district level and thus increased its coverage at drug stores, clinics, hospitals and distributors. The Company also witnessed stronger than expected demand for leading products including Qinrejiedu Oral Liquid and Ginkgo Mihuan. Television-based marketing for Arphshuangxing also contributed to the increased demand by generating additional sales in the regions where campaigns aired.

"We are very pleased with our performance for both the second quarter and year to date. 2008 has proven to be an inflection point for our Company after we entered the U.S. capital markets with a $15 million investment by a diverse group of institutional investors in support of our highly qualified and competent management team," stated Dr. Guoqing Jiang, Chief Executive Officer of Tianyin. "These results are the culmination of hard work, prudent planning and solid execution on behalf of our entire organization. The underlying growth dynamics, supported by increases in disposable income and improving fundamentals in the overall modern traditional Chinese medicine industry provide further confirmation that we are properly positioned to capitalize on this opportunity on a go forward basis."

Six Month Results

For the six months ended December 31, 2007, revenues increased approximately 82% to $14.9 million compared to the same period in 2006. Gross profit was $6.1 million for the first six months of 2008, representing an increase of 94.3% from the first six months of 2007. Gross margins were 40.6% for the first six months of 2008 compared to 38% for the same period in 2007. Income from operations was $3.8 million for the first six months of 2008, representing an increase of 65% over the first six months of 2007. Operating marg
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SOURCE Tianyin Pharmaceutical, Inc.
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