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Tianyin Pharmaceutical Co., Inc. Has Four Products Included in China's Essential Drug List
Date:9/10/2009

CHENGDU, China, Sept. 10 /PRNewswire-Asia-FirstCall/ - Tianyin Pharmaceutical Co., Inc., (NYSE Amex: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced that it has four products included in China's Essential Drug List (EDL) released by the Chinese government on August 18. The four generic products are Azithromycin Dispersible Tablets, Simvastatin Tablets, Hugan Tablets and Xiao Yan Li Dan Capsules and Tablets.

All the drugs in the Essential Drug List will be included in China's basic health insurance catalog with a higher reimbursement percentage. Meanwhile, the pricing of the Essential Drugs will be decided by the governments through public tender at the provincial level. The distribution of Essential Drugs will also be carried out through unified channels by either drug manufacturers or drug distributors. Companies winning the government tenders will have the potential to significantly increase sales while margins on generic and more commonly used drugs will see pricing control from the government.

As a result of this inclusion, management expects the sales of these four drugs could potentially increase from $6.1 million in fiscal year 2009 to approximately $12 million in fiscal year 2010, which ends June 30, 2010.

"The release of China's essential drug list ensures that most rural citizens with comparatively low income will have access to cheap and safe medicines," Dr. Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc., commented. "We view this inclusion as an opportunity to significantly increase revenues generated from these products."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM"
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SOURCE Tianyin Pharmaceutical Co., Inc.
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