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China Sky One Medical, Inc. Signs Distribution Agreement with Harbin Baolong Pharmaceutical Company
Date:7/15/2008

HARBIN, China, July 15 /Xinhua-PRNewswire-FirstCall/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (Amex: CSY), a leading fully integrated pharmaceutical company producing external use, over- the-counter drugs in the People's Republic of China ("PRC"), announced today that it signed an agreement with Harbin Baolong Pharmaceutical Company on July 12 to distribute the Company's prescription drugs.

China Sky One, which has a history of producing external use and over-the- counter drugs, has recently acquired pharmaceutical companies that develop and produce prescription drugs. As a result, prescription drugs manufactured by China Sky One have doubled and now make up approximately 30% of its total product lines. Harbin Baolong Pharmaceutical Company, which has an extensive distribution network for prescription drugs in China, achieved revenues of in excess of RMB 500 million (USD $73.1 million) in each of the last two years.

The agreement, which initially runs over five years, has a total estimated value of approximately RMB 61.5 million (USD $ 9 million.) To date, China Sky One has been selling five of its prescription drugs through Baolong's distribution network, which it expects will generate sales of approximately RMB 20.5 million (USD $3 million) from August 2008 to December 2008.

"We are excited to be cooperating with Harbin Baolong Pharmaceutical Company," said Mr. Yan-Qing Liu, Chairman, CEO and President of China Sky One Medical, Inc. "We are confident that our move into the prescription drug market via Baolong's strong distribution channel represents a solid opportunity for future growth and can ultimately help us expand our market share and increase profitability going forward."

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SOURCE China Sky One Medical, Inc.
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