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TPI Receives Approval for High Tech Enterprise Status
Date:12/30/2011

CHENGDU, China, Dec. 30, 2011 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical Co., Inc. (NYSE Amex: TPI, or the "Company"), a pharmaceutical company that specializes in patented biopharmaceutical medicine, modernized traditional Chinese medicine, branded generics and active pharmaceutical ingredients (API) today announced the approval of the Company's operating subsidiary, Chengdu Tianyin Pharmaceutical Co., Ltd's ("Chengdu Tianyin") application for the renewal of its High Tech Enterprise Status in Chengdu, Sichuan Province of China.

Chengdu Tianyin is TPI's wholly foreign-owned enterprise incorporated in China which is subject to China's Foreign Enterprise Income Tax ("FEIT") Law. Chengdu Tianyin has been entitled to the preferential tax treatment for opening up its production facility in Western China in Sichuan Province. The applicable reduced preferential state enterprise income tax rate under this policy was 15% until December 31, 2010. Following the preferential tax treatment period, Chengdu Tianyin is currently subject to 25% income taxes.

Chengdu Tianyin's High Tech Enterprise status application was submitted to the Bureau of Science and Technology of Chengdu, Sichuan Province in June 2011 after an initial preparation period. Following a period of extensive review of the application material and the final dissertation of ongoing research projects and innovations, the Bureau of Science and Technology of Chengdu has approved the Company's status of High Tech Enterprise. The Company is currently preparing for the preferential tax treatment application. Additional information can be accessed via: http://www.innocom.gov.cn/web/static/catalogs/catalog_6/6.html (Chinese version).

About TPI

Headquartered at Chengdu, China, TPI is a pharmaceutical company that specializes in the development, manufacturing, marketing and sales of patented biopharm
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