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

vernment support for rural health care, competition from existing and new competitors, changes in technology, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Medicine Corporation undertakes no duty to revise or update any forward- looking statements to reflect events or circumstances after the date of this release.

                          -FINANCIAL TABLES FOLLOW-



                 CHINA MEDICINE CORPORATION AND SUBSIDIARIES
       CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED DECEMBER 31, 2008 AND 2007

                              Three Months ended       Twelve Months Ended
                                 December, 31              December, 31
                                2008        2007         2008         2007
                                  (unaudited)               (audited)
    REVENUES
      Product sales         $24,425,182  14,694,861  $52,307,211  $39,247,130
      Medical formula sales       7,254   1,464,625    1,340,595    2,858,257
        Total revenues       24,432,436  16,159,486   53,647,806   42,105,387

    COST OF GOOD SOLD        18,589,095  11,678,186   38,074,919   29,708,088

    GROSS PROFIT              5,843,341   4,481,300   15,572,887   12,397,299

    OPERATING EXPENSES
      Research and
       development              355,868     214,541      840,437      651,990
      Selling, general and
       administrative         1,289,076     895,619    3,804,585    3,330,907
        Total operating
         expenses             1,644,944   1,110,160    4,645,022    3,982,897

    INCOME FROM OPERATIONS    4,198,397   3,371,140   10,927,865    8,414,402

    OTHER INCOME, NET            40,167      11,8
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SOURCE China Medicine Corporation
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