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Lotus Pharmaceuticals, Inc. Reports Strong 2008 Financial Results
Date:4/22/2009

o increase between 30% and 40% from 2008 to the range from $16.6 million to $17.9 million.

    Highlights of Recent Developments
    -- Management has decided to start the construction of Inner Mongolia
       plant buildings on May 9, 2009 and to attempt to complete it by the end
       of 2009.
    -- In addition to the cost of land use rights and related expenses
       (approximately $32.6 million) which Liang Fang has paid, other
       components of the project are yet to be funded, including construction
       costs of approximately $17.5 million, costs associated with the various
       production lines estimated at approximately $33.6 million and working
       capital of approximately $7.3 million.
    -- The Company entered into an intellectual rights transfer contract with
       Beijing Yipuan Bio-Medical Technology Co., Ltd. in December 2008 to
       acquire the drug Yipubishan, a highly effective and stable octreotide
       acetate injection solution, In the first quarter of 2009, the Company
       has paid up $7.9 million as required in the transfer. The Company
       believes this could contribute $11.0 million to 2009's sale revenues
       with net margin of 75%.
    -- The Company announced two drugs entering into clinical testing of SFDA
       in 2008, Isosorbide Mononitrate sustained release tablet, a highly
       effective drug for the prevention and treatment of angina; and
       Laevo-Bambutero a Class 1 drug to treat asthma.
    -- Lotus obtained the patent, along with exclusive production rights for
       Laevo-Bambutero in China, through the technology transfer agreement
       with Dongguan Kaifa for a cash payment of $7.0 million and a 3% royalty
       on products sales. The Company has already paid $2.9 million to
       Dongguan Kaifa. The Company intends to market Laevo-Bambutero as a
       better alternative to Bambutero for the treatment of asthma, since it
       uses an integra
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SOURCE Lotus Pharmaceuticals, Inc.
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