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China Shenghuo Receives Notice from NYSE Amex LLC Regarding Listing Standards
Date:9/27/2010

most recent fiscal years. The Company was given an opportunity to submit a plan of compliance (a "Plan") to the AMEX by October 22, 2010 to demonstrate the Company's ability to regain compliance with Section 1003(a)(i) by March 22, 2012.

Pursuant to the Deficiency Letter, if the AMEX determines that the Company has made a reasonable demonstration in the Plan of an ability to regain compliance with the continued listing standards by March 22, 2012, the AMEX will accept the Plan. If the AMEX does not accept the Plan, or the Company does not make adequate progress and complete the actions outlined in the Plan by March 22, 2012, the AMEX will initiate delisting proceedings against the Company.

The Company's unaudited net loss attributable to stockholders for the six months ended June 30, 2010, was narrowed to $28,837 as compared to an unaudited net loss attributable to stockholders of $6.7 million for the six months ended June 30, 2009. The Company expects to be profitable for the nine months ending September 30, 2010 and for the full fiscal year ending December 31, 2010. The Plan that the Company will present to the AMEX will show that the Company projects that within the 18-month plan period its stockholders' equity will increase to the $2 million level as a result of its internally generated return to profitability. Should the Company issue equity, whether in a private or public offering during that period, it would accelerate meeting this target. However, there can be no assurance that the AMEX will find the Plan to be submitted to be acceptable or, even if accepted, that the Company will in fact generate sufficient net profit to achieve the requisite stockholders' equity threshold. Therefore, the Company can provide no assurances that it will regain compliance with the AMEX's continued listing standards, and its failure to do so could result in the delisting of the Company's common stock from the AMEX. Until the Company
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SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
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