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AMDL Signs Letter of Intent to Purchase a China Based Pharmaceutical Distribution Company
Date:5/7/2008

TUSTIN, Calif., May 7 /PRNewswire-FirstCall/ -- AMDL, Inc. (Amex: ADL), headquartered in Tustin, California, with operations in Shenzhen, Jiangxi, and Jilin, China, is a vertically integrated specialty pharmaceutical company. In combination with its subsidiary Jade Pharmaceutical Inc. (JPI), the Company engages in the research, development, manufacture, and marketing of diagnostic, pharmaceutical, nutritional supplement, and cosmetic products.

AMDL today announced, that a Letter of Intent (LOI) has been signed between Guangzhou Lazon Pharmacy Co., Ltd. (GLP), a Hong Kong company that holds sole ownership of two China based pharmaceutical companies: Jiangxi Shangrao Kangda Pharmacy Co., Ltd. (JJB) and Yangbian Yiqiao Biochemistry Pharmacy Co., Ltd. (YYB) and JPI, the wholly owned subsidiary of AMDL. Based upon recent meetings in Shenzhen, China it is anticipated that JPI and GLP with work towards completing the acquisition of GLP by JPI and, as an interim step, GLP and JPI shall enter into a distribution agreement for JPI pharmaceutical products.

GLP was founded in 2002 and it is a Guangzhou based pharmaceutical distribution and sales company. GLP currently represents over 400 products from various manufacturers. GLP currently sells and distributes traditional Chinese medicines, health foods, medical equipment and generic pharmaceutical products. GLP had FY2007 gross sales of approximately 200 million RMB (US$28.55 million), with approximately a 10% net profit margin and an annual sales growth rate of approximately 20-30% per year. GLP currently has approximately 70 in-house sales agents. Geographically, 51% of the current sales are made to hospitals, clinics and pharmacies in Guangdong Province followed by 49% of the sales be
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SOURCE AMDL, Inc.
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