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China Medicine Corporation Files Extension for Fiscal 2010 Form 10-K Filing
Date:3/23/2011

GUANGZHOU, China, March 23, 2011 /PRNewswire-Asia/ -- 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 it has filed with the United States Securities and Exchange Commission 1) a Current Report on Form 8-K to disclose that its previously issued financial statements should not be relied upon, and 2) a Form 12b-25 Notification of Late Filing for its Annual Report on Form 10-K for the year ended December 31, 2010. The Company expects to restate its previously issued financial statements for fiscal years 2008 and 2009, and the quarters within the fiscal years of 2008, 2009, and 2010, in order to correct certain accounting and reporting errors that impact the accuracy of the previously issued financial statements. Because of the nature and timing of the review, the Company will be unable to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2010 with the SEC by March 31, 2011, the prescribed due date.

The Board of Directors (the "Board") of the Company, after consultation with and upon recommendation of the management of the Company and its Audit Committee, concluded that the Company's previously issued financial statements contained in its Annual Reports on Form 10-K for fiscal years 2008 and 2009, and the Quarterly Reports on Form 10-Q for the periods within the fiscal years of 2008, 2009 and 2010, (collectively, "the previously issued financial statements") should no longer be relied upon.

In connection with the preparation of the Company's financial statements for the year ended December 31, 2010, certain accounting and reporting errors were identified with respect to improper activities by certain employees of Guangzhou LifeTech
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