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Lotus Pharmaceuticals, Inc. Purchases Land Use Rights to Grow its Business and Reduce Costs
Date:2/5/2009

d for production and distribution before the new facility is built will first be produced in Beijing. Production and distribution of new drugs will eventually move to the new Inner Mongolia facility once the new facility is finished.

About the Chahaer Industrial Park

Creation of the Chahaer Industrial Park was approved by the State Council in 2003 as an important means of assisting the under-developed western regions. It consists of 10.41 square kilometers of land located in the county of Chayouqian of Wulanchabu City in Inner Mongolia, around two hours and thirty minutes driving time from Beijing. A number of the Chinese government's preferential tax and operating subsidy policies automatically cover companies located in the park. About one third of the park is currently occupied. Information about Chahaer Industrial Park is available at: http://www.cyqq.gov.cn .

About Lotus Pharmaceuticals, Inc.

Lotus Pharmaceuticals, Inc. controls and operates Liang Fang Pharmaceutical, Ltd. ("Liang Fang") and Enze Jiashi Pharmaceutical, Ltd. ("Enze"), two pharmaceutical companies located in Beijing, China. Together, Liang Fang and Enze ("Lotus East") undertake the development, production, marketing and distribution of pharmaceutical products. Lotus East has some of the most advanced pharmaceutical production equipment in China and its manufacturing facilities meet national Good Manufacturing Practices (GMP). The Company distributes its own portfolio of drugs and pharmaceutical products produced by other manufacturers in the PRC through an extensive national distribution network. Lotus owns ten pharmacies in Beijing through which it directly sells over 5,000 western drugs, Traditional Chinese Medicines (TCM) and medical equipment items.

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