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Lotus Pharmaceuticals Raises $5 Million in Private Placement
Date:2/26/2008

t meet. Another portion of the Escrow Shares is being held in escrow subject to the Company listing on the NASDAQ Stock Market within 18 months following the Closing Date. Two-thirds of the Escrow Shares will be in escrow to ensure that the Purchasers receive their full redemption payments if they choose to redeem their Preferred Shares.

This transaction will be described in more detail in the Form 8-K and other supporting documents Lotus will file with the Securities and Exchange Commission.

About Lotus Pharmaceuticals, Inc.

Lotus Pharmaceuticals, Inc. ("Lotus") controls and operates Beijing Liang Fang Pharmaceutical Co., Ltd. ("Liangfang") and Beijing En Zhe Jia Shi Pharmaceutical Co., 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 2,000 square meters, a warehouse of 1,000 square meters and operates ten retail pharmacies in the Beijing area. Lotus East performs scientific research on new medicines, and the production, wholesale and retail sale of medicines. For more information, visit http://www.LotusEast.com .

Safe Harbor Statement

Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "exp
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SOURCE Lotus Pharmaceuticals, Inc.
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