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Lotus Pharmaceuticals Announces Key Changes
Date:1/15/2010

BEIJING, Jan. 15 /PRNewswire-Asia-FirstCall/ -- Lotus Pharmaceuticals, Inc. (OTC Bulletin Board: LTUS) ("Lotus" or the "Company"), a growing developer and producer of prescription drugs and licensed national seller of pharmaceutical products in the People's Republic of China ("PRC"), today reported that its newly engaged auditor is Friedman LLP and legal counsel McLaughlin & Stern LLP.

The Company was notified that the audit practice of Bagell, Josephs, Levine & Company, LLP, the Company's independent registered public accounting firm ("BJL"), joined with Friedman LLP ("Friedman") effective as of January 1, 2010. On January 12, 2010, BJL resigned as the independent registered public accounting firm of the Company and, with the approval of the Audit Committee of the Company's Board of Directors, Friedman was engaged as the Company's current independent registered public accounting firm.

BJL was engaged as the Company's independent accountants on April 24, 2009. From April 24, 2009 through January 12, 2010, there were no disagreements between the Company and BJL on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to its satisfaction, would have caused BJL to make reference to the subject matter of such disagreements in connection with its report,

The Company has also engaged McLauglin & Stern, LLP. as its securities legal counsel.

CEO, Zhongyi Liu, said, "We are looking forward to working with our new auditor and legal counsel to add values for our shareholders."


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