China Pharma Holdings, Inc. Reports Third Quarter 2008 Financial Results and Corpora...(034 Accrued taxes payable ...),Health

Accrued taxes payable 602,480 --

Other payables (48,535) (134,647)

Advances from customers 386,922 47,448

Net Cash from Operating Activities 4,026,464 (817,368)

Cash Flows from Investing Activities:

Purchase of property and equipment (125,753) (77,313)

Purchase of intangible assets (428,641) (1,993,288)

Advances for purchases of intangibles (5,856,412) --

Net Cash from Investing Activities (6,410,806) (2,070,601)

Cash Flows from Financing Activities:

Proceeds from sale of common stock

and warrants 9,268,938 3,797,183

Payments of short term notes payable (2,814,744) --

Net Cash Proceeds from Financing

Activities 6,454,194 3,797,183

Effect of Exchange Rate Changes on

Cash (61,509) 149,995

Net Change in Cash 4,008,343 1,059,209

Cash and Cash Equivalents at

Beginning of Period 1,830,335 656,441

Cash and Cash Equivalents at End of

Period $5,838,678 $1,715,650

Supplemental Cash Flow Disclosure:

Cash paid for interest $130,342 $115,841

Cash paid for income taxes 1,289,596 --

Safe Harbor Statement

Certain statements in this press release and oral statements made by China Pharma on its conference call in relation to this release, constitute forward- looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform
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