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Lotus Pharmaceuticals, Inc. Implements Environmentally-friendly Cost Saving Strategies
Date:2/7/2008

BEIJING, Feb. 7 /Xinhua-PRNewswire-FirstCall/ -- Lotus Pharmaceuticals, Inc. (OTC Bulletin Board: LTUS) ("Lotus" or the "Company"), a pharmaceutical company in the People's Republic of China ("PRC"), today announced that Enze Jiashi Pharmaceutical, Ltd. ("Enze"), a wholly owned subsidiary of Lotus, has implemented cost saving strategies, which it expects will reduce its production costs by approximately 50%.

The environmentally-friendly strategies are expected to significantly lower electricity and water usage of the production facility. The Company intends to spend $0.8 million to apply new technology to the facility's boiler systems, vapour systems and cooling drainage systems. These changes are expected to significantly reduce the cost of steam, heating and water used in the manufacturing process by 50%, 60% and 50%, respectively.

"As a result of implementing these strategies, Enze is expected to lower annual manufacturing expenses by RMB 8 to 10 million (approximately $US 1 to 1.4 million). This will not only improve our margins but has the added benefit of reducing the amount of energy used at the facility, which is good for the environment," said Dr. Zhongyi Liu, Chairman, CEO and President of Lotus Pharmaceuticals, Inc.

About Lotus Pharmaceuticals, Inc.

Lotus Pharmaceuticals, Inc. ("Lotus") controls and operates Liangfang Pharmaceutical, Ltd. ("Liangfang") and Enze Jiashi Pharmaceutical, Ltd. ("Enze"), two Chinese pharmaceutical companies located in Beijing. Liangfang and Enze form a large comprehensive enterprise, which deals in an integration of the production, trade, sales and marketing of pharmaceuticals. Together, they possess some of the most advanced pharmaceutical-production equipment used in China, workshops authenticated by the National GMP, a suite of various medicines produced by Liangfang and/or Enze (together, "Lotus East"), and a number of high-tech personnel. Lotus East has business and office facilities of 2
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SOURCE Lotus Pharmaceuticals, Inc.
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