China Sky One Medical, Inc.'s AMI Diagnostic Kit Recognized as a National Innovation Proje... (eceive asubsidy from the Chinese governm...)

China Sky One Medical, Inc.'s AMI Diagnostic Kit Recognized as a National Innovation Project by NDRC

Date:1/12/2010

eceive a subsidy from the Chinese government of RMB 6.00 million (approximately US $0.88 million) in 2010. In addition, National Innovation Projects receive a preferential income tax rate of 15%, versus the regular tax rate of 25%. Currently, three of China Sky One Medical's wholly-owned subsidiaries, Harbin TDR Medical Science and Technology, Heilongjiang Tianlong Pharmaceutical, and Harbin First Bioengineering, receive a preferential income tax rate of 15% because they have been granted the High-Technology Enterprise Certificate by the provincial government in Heilongjiang Province, which became effective January 1, 2009.

The AMI Diagnostic Kit, which entered the market in China in 2007, is used for early diagnosis of Myocardial Infarction (MI), also known as heart disease. The testing kit requires users to place a blood sample on a marker, and a positive (+) or negative (-) sign will result, showing whether the user should consult his or her doctor for further testing. More often than not, heart disease is likely to strike people who are overweight, smoke, or suffer from diabetes. Statistics show that over 60 million patients in China currently suffer from heart disease, with approximately eight million new cases each year. Recent medical studies have shown that heart failure and heart attacks are increasing among the younger adults in China, the result of several factors, including the fast pace of a more modern life style and increased pressure from work and school. Using the AMI Diagnostic Kit for early detection of heart disease can help to reduce these statistics. For the first nine months of 2009, the AMI Diagnostic Kit accounted for approximately 7.5% of the Company's total revenues.

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