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China Medicine Announces Record Fourth Quarter and 2008 Results
Date:3/26/2009

GUANGZHOU, China, March 26 /PRNewswire-Asia / -- China Medicine Corporation (OTC Bulletin Board: CHME) ("China Medicine" or "the Company"), a developer and a leading distributor of prescription and over-the-counter pharmaceuticals, traditional Chinese medicines ("TCM"), nutritional and dietary-supplements, medical devices, and medical formulations in the People's Republic of China ("PRC"), today reported outstanding financial results for the fourth quarter and full year ended December 31, 2008.

    Fourth Quarter 2008 Highlights

    -- Revenues increased 51.2% to $24.4 million
    -- Gross profit increased 30.4% to $5.8 million
    -- Operating income increased 24.5% to $4.2 million
    -- Net income increased 26.6% to $3.5 million
    -- Received approval from the Guangdong Food & Drug Administration
       ("Guangdong FDA") to distribute dental equipment and instruments in
       Guangdong Province
    -- Once again awarded GSP (Good Supply Practice for Pharmaceutical
       Products) certification from State Food and Drug Administration
       (SFDA).
    -- Received rADTZ patent approval for Australia, South Africa and Korea

    Full Year 2008 Highlights

    -- Total revenues increased 27.4% to $53.6 million
    -- Gross profit increased 25.6% to $15.6 million
    -- Operating income increased 30.0% to $11.0 million
    -- Net income increased 32.7% to $9.1 million, or $0.60 per diluted
       share

''We are very pleased with our fourth quarter and full year 2008 results despite the challenging economic environment. In the fourth quarter, revenue increased 51.2% compared to the same period last year. Any slowdown from the global economic crisis was mitigated by expansion of our distribution network and positive seasonal factors in which orders were booked just prior to the end of the year,'' said Mr. Senshan Yang, CEO and Chairman of China Medicine Corporation.

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SOURCE China Medicine Corporation
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