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China Sky One Medical, Inc. Announces Record Third Quarter 2008 Results
Date:11/10/2008

lders' equity at September 30, 2008 was $85.9 million, a 166.4% increase over $32.2 million recorded at December 31, 2007. The Company generated $26.7 million in net cash flow from operating activities in the nine months ended September 30, 2008, up from $10.2 million in the same quarter of 2007.

Recent Events

On October 14, 2008, China Sky One Medical announced that it started production at Jin Chuang, a newly established pharmaceutical company that it acquired on September 5, 2008. Jin Chuang's products include Chinese health remedies such as Oyster Shell Calcium tablets for the treatment of osteoporosis, and Naftoipidil Dispersible tablets for the treatment of benign prostatic hyperplasia. The acquisition was completed on September 5, 2008, and is expected to contribute $3-$5 million in sales in fiscal 2008, and $0.95- $1.55 million in net profit.

On October 22, 2008, China Sky One Medical announced that its wholly-owned subsidiary, Harbin First Bio-Engineering Co. Ltd., received $800,000 in tax savings from the Heilongjiang Binxi Economic Zone on August 4, 2008, as the result of an agreement it entered into in 2005, when the Company decided to invest in Harbin First Bio-Engineering Co. Ltd. The Company said it would invest this refund back into its business to further improve operations and execute its growth strategy, which includes strengthening its distribution channel and developing exciting new drugs.

On October 23, 2008, China Sky One Medical signed an agreement with Shaanxi Xintai Pharmaceutical Company to distribute the Company's Asthma Patch product, which is intended for the treatment of asthma and bronchitis. The distribution agreement with Shaanxi Xintai initially runs over three years. China Sky One Medical expects it will generate sales of approximately $5 million in 2009, and believes it will increase sales of its Asthma Patch by 50% each year. China Sky One Medical and Shaanxi collaborated on the distribution of the Co
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SOURCE China Sky One Medical, Inc.
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