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China Botanic Pharmaceutical Announces Plans to Switch to Renewable Bio-Fuel - Straw Pellets

HARBIN, China, April 21, 2011 /PRNewswire-Asia/ -- China Botanic Pharmaceutical Inc. (NYSE AMEX: CBP) ("China Botanic" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM") in China, today announced that the Company has successfully completed a feasibility study to analyze the benefits of using straw pellets, a renewable bio-fuel, for its production operations. As a result of the study, the Company plans to put the new fuel into use by October, 2011.

Straw pellets are a by-product of all natural ingredients, such as wheat and oil seed straw. The energy contained in the original raw material is highly concentrated, making straw pellets a clean fuel with very good energy qualities, calorific content with minimal amounts of ash. In comparison to coal, straw pellets are a lower cost and cleaner source of fuel. Moreover, straw pellets are carbon-neutral, since the fuel is made of plant waste which is part of the natural carbon cycle. Burning the fuel to generate energy simply returns the carbon dioxide to the atmosphere, which will then be reused by the next biomass growth.

1.5 tons of straw pellets produce the same amount of energy as one ton of coal. However, measured in terms of energy produced, the price of straw pellets is actually 15% to 20% lower than that of coal.  

"We believe our efforts to research a bio-fuel alternative to coal, such as straw pellets and decision to switch to a cleaner fuel demonstrates our commitment to achieve sustainable environmental growth and is in line with our goal to provide the high-quality plant-based treatments," commented Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic. "Given that fuel costs account for approximately 10% of our total cost of goods, we expect the switch to bio-fuel to result in additional cost efficiency and improved profitability while supporting a healthy ecosystem. We have a strong interest in preserving the environment and in producing safe, clean and all-natural products."

About China Botanic Pharmaceutical Inc.China Botanic Pharmaceutical Inc. is engaged in the research, development, manufacturing, and distribution of botanical products, bio-pharmaceutical products, and traditional Chinese medicines ("TCM"), in the People's Republic of China. All of the Company's products are produced at its three GMP-certified production facilities in Ah City, Dongfanghong and Qingyang. The Company distributes its botanical anti-depression and nerve-regulation products, biopharmaceutical products, and botanical antibiotic and OTC TCMs through its network of over 3,000 distributors and over 70 sales centers across 24 provinces in China. For more information, please visit

Safe Harbor StatementThis press release contains certain statements that may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's beliefs, assumptions and expectations of the Company's future operations and financial performance, taking into account the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known that may cause actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial condition expressed or implied in any forward-looking statements. These forward-looking statements are based on current plans and expectations and are subject to a number of uncertainties including, but not limited to, the Company's ability to manage expansion of its operations effectively, and other factors detailed in the Company's annual report on Form 10-K and other filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein.Company Contact:

CCG Investor Relations:China Botanic Pharmaceutical Inc.

Mr. Mark Collinson, PartnerMs. Portia Tan, IR Contact

Phone: +1-310-954-1343 (Los Angeles)Tel:  +86-451-8260-2162

Email:  mark.collinson@ccgir.comEmail:

Website: www.ccgirasia.comMr. Crocker Coulson, PresidentPhone: +1-646-213-1915 (New York)Email:

SOURCE China Botanic Pharmaceutical Inc.
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