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Biostar Pharmaceuticals, Inc. Completes 8.6-Acre Land Purchase to House New Raw Materials Processing Plant
Date:3/10/2009

NEW YORK, March 10 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (OTC Bulletin Board: BSPM) today announced that it has acquired 8.6 acres of land located in Xi'an, thirty-five kilometers from the Company's operating facility in Xian Yang, China. The property cost was approximately $2.92 million (20,000,000 RMB). Biostar is planning for the construction of a 6,000 square meter pharmaceutical raw material processing plant on the land acquired. Construction is expected to begin in April of this year and should take approximately six months to complete and is currently budgeted at $2.3 million (16,000,000 RMB).

The acquisition of land was first started in October 2008 in conjunction with the lease of approximately 80 acres of farming land in the hillsides of the Qinling Mountains -- located approximately 5 kilometers from the acquired property. Rented from local farmers, the property is suitable to host a broad variety of the herbs and plants used in Biostar's pharmaceutical products. Together, these two transactions represent the first steps in the Company's 2009 expansion strategy.

In recent months the Company has hired approximately 60 regional farmers to manage the seasonal plantings of a number of plant breeds including salvia, honeysuckle, chrysanthemum, radix, walnuts, pepper, eucommia, shan yu, codonopsis, schisandra, ginseng, turmeric, radix gentianae macrophyllae, radix platycodnis, polygala, and angelica on the leased farmland. When harvested these plants will be processed in the new Xi'an facility, which is expected to be operational by year end and will result in approximately 50 new jobs for factory workers and salespeople. The Company anticipates that it will initially require approximately 25% of the harvested and processed herbal raw materials for its internal production and will sell the remaining inventory to regional wholesalers. These wholesalers have already been c
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SOURCE Biostar Pharmaceuticals, Inc.
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