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Tongjitang Chinese Medicines Company Reports Second Quarter 2010 Financial Results
Date:8/18/2010

104,066,526 104,066,526 Half Year Ended June 30, 2009 2010 2010 RMB RMB US$ (Note 1) GAAP net income 5,795 (18,109) (2,670) Share-based compensation expenses (Note 2) 4,068 159 23 Depreciation and amortisation 10,014 11,922 1,758 Interest (income) expense, net 1,592 4,967 732 Provision for income taxes 3,660 3,024 446 Non-GAAP adjusted EBITDA 25,129 1,963 289 GAAP earnings per share Ordinary shares -Basic 0.04 -0.17 -0.03 -Diluted 0.04 -0.17 -0.03 Non-GAAP adjusted EBITDA per share Ordinary shares -Basic 0.19 0.02 0.00 -Diluted 0.19 0.02 0.00 Shares used in computation of GAAP earnings per share / Non-GAAP adjusted EBITDA per share Ordinary shares -Basic 129,512,746 104,066,526 104,066,526 -Diluted 129,512,746 104,066,526 104,066,526

(Note 1)

The condensed consolidated financial statements and the related amounts of Tongjitang Chinese Medicines Company are stated in Renminbi ("RMB"). The translation of RMB amounts as of and for the period ended June 30, 2010 into United States dollar ("US$") is included solely for the convenience of readers and has been made at the rate of RMB6.7815 to US$1.00, which is based on the noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York at June 30, 2010. Such translations should not be construed as representations that RMB amounts could be converted into US$ at that rate or any other rate.

(Note 2)

Share-based compensation expenses recorded in accordance to ASC subtopic 718-10 ("ASC 718-10"), Compensation - Stock Compensation: Overall (Pre-codification: SFAS No.123(R), Share-Based Payment) are as follows:

Second Quarter Ended June 30, 2009 2010 2010 RMB RMB US$ (Note 1) General and administrative expenses 2,033 26 4 Half Year Ended June 30, 2009 2010 2010 RMB RMB US$ (Note 1) General and administrative expenses 4,068 159 23
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