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China Medicine Corporation Adopts New Incentive Compensation Plans
Date:3/3/2011

GUANGZHOU, China, March 3, 2011 /PRNewswire-Asia-FirstCall/ -- China Medicine Corporation (OTC Bulletin Board: CHME) (the "Company"), a leading manufacturer, developer and distributor of Western pharmaceuticals, traditional Chinese medicines ("TCM"), and other health products in the People's Republic of China, today announced that the Board of Directors (the "Board") adopted, subject to stockholder approval, the 2011 Long-Term Incentive Plan (the "2011 Incentive Plan"), covering a maximum of 4 million shares of common stock, par value $0.0001 per share, of the Company (the "Common Stock"). The plan provides for the grant of incentive and non-qualified stock options, stock appreciation rights, restricted shares and other equity-based incentives to employees, directors, and consultants.

The 2011 Incentive Plan is designed to further and promote the interests of the Company, its subsidiaries and its shareholders by enabling the Company and its subsidiaries to attract, retain and motivate existing and prospect employees, directors and consultants, and to align the interests of those individuals and the Company's shareholders.

The Board's Compensation Committee (the "Compensation Committee") will administer the 2011 Incentive Plan, review with management the adoption, amendment and termination of the 2011 Incentive Plan, and approve grants and awards under the 2011 Incentive Plan. In the absence of the Compensation Committee, the 2011 Incentive Plan will be administered by the Board. Each participant receiving an award under the 2011 Incentive Plan will enter into an award agreement (the "Award") with the Company in a form specified by the Compensation Committee. Each such participant shall agree to the restrictions, terms and conditions of the Award set forth therein and in the 2011 Incentive Plan.

Pursuant to the 2011 Incentive Plan, on February 25, 2011 the Compan
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SOURCE China Medicine Corporation
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