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China Sky One Medical Announces First Quarter 2010 Results
Date:5/18/2010

s on increasing the sales and promotion of our current products, including our promising portfolio of diagnostic kits," concluded Mr. Liu.

Pending 2009 Restatement

On May 11, 2010, the Company announced that it will file an amendment to its 2009 Annual Report on Form 10-K to reflect the application of accounting standards related to the valuation of 750,000 warrants issued in 2008 (the "Warrants"). This analysis is ongoing and the Company is working closely with its counsel and auditor, under the guidance of the SEC, to amend the 2009 Form 10-K filing as soon as practical.

As already announced, China Sky One's previously reported 2009 income from operations of $46.3 million and cash flow from operations of $33.4 million will not be affected by the restatement. The Company continues to expect to restate 2009 GAAP net income to include a non-cash, non-operating charge of estimated $4.5 to $5.5 million to reflect the change in the fair value of the Warrants, partly offset by approximately $1.3 million of previously recorded liability in connection with a registration rights obligation related to the Warrants.

Conference Call

China Sky One Medical will conduct a conference call at 8:00 a.m. Eastern Daylight Time (EDT) on Tuesday, May 18, 2010, to discuss its first quarter 2010 financial results. To participate on the live call, please dial the following number five to ten minutes prior to the scheduled conference call time: 877-585-2309. International callers should dial 706-902-4207. The Conference ID for this call is 73235080.

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SOURCE China Sky One Medical, Inc.
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