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China Medicine Reports Third Quarter 2010 Financial Results
Date:11/10/2010

o $70 million, compared to the $72 to $76 million range we announced previously.  We maintain our expectation that gross margin will be in the range of 33% to 38%, as compared to 29.3% in 2009.  We now believe full year operating expenses will represent approximately 16-18% of revenue, up from 12-15% of revenue as announced previously. This guidance reflects China Medicine's current and preliminary views, which are subject to change.

Conference CallThe Company will hold a conference call on Thursday, November 11 at 8:00 a.m. U.S. Eastern Time following the announcement. Listeners may access the call by dialing the following numbers:United States toll free:

1-888-812-8522International:

1-913-312-0840Listeners may access the replay through November 25, 2010 by dialing the following numbers:

United States toll free:

1-877-870-5176International:

1-858-384-5517 Password:

5783274Use of Non-GAAP Financial MeasuresGAAP results for three and nine months periods ended September 30, 2010 and September 30, 2009 include non-cash gains and expenses related to change in the fair value of the Company's warrant liabilities and a deemed preferred stock dividend related to outstanding convertible preferred stock issued to OEP. The non-GAAP measure provides a consistent basis for investors to understand our financial performance in comparison to historical periods without variation of non-recurring items and non-operating related gains and charges. In addition, it allows investors to evaluate our performance using the same methodology and information as that used by our management. Non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the non-GAAP financial measure. However, the Company compensates for these limitations by providing the relevant disclosure of the items
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SOURCE China Medicine Corporation
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