China Botanic sees strong initial demand for its new Ginseng and Deer Antler Extract

China Botanic Pharmaceuticals, Inc. (CBP 2.07, -0.14, -6.33%) ("China Botanic " or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM"), announced that as of October 31, 2010, the end of its fiscal year 2010, the Company's new biopharmaceutical product, Ginseng and Deer Antler Extract has achieved sales of RMB 4.5 million (or $661,500) since its launch in August 2010. Driven by strong market demand and rapid product acceptance, Ginseng and Deer Antler Extract sales were up approximately 50.0% compared to management's original estimate of $0.4 million for fiscal year 2010.

In July 2010, China Botanic conducted market research in Jiangsu and Zhejiang provinces in China, which revealed that there was no high-end nutritional product for kidney health in these markets. Accordingly, China Botanic's research and development was geared to the development of a traditional remedy for launch in the autumn and winter seasons when the Chinese population consumes nutritional products to maintain kidney health. China Botanic's product offering—Ginseng and Deer Antler Extract is a high-end Chinese medicine, whose ingredients have been used for centuries to nourish the blood and the kidney, restore the body's energy and increase endurance. China Botanic's Ginseng and Deer Antler Extract product has received significant interest and attention from large pharmaceutical stores and local media driving sales growth.

"The initial success of our Ginseng and Deer Antler Extract product further strengthens our growing and diversified product portfolio. We believe our recent product launches and their success demonstrates our world-class market research and product development capabilities," commented Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic. "In fiscal 2011, we will continue to invest in research and development of new bio-pharmaceutical and TCM products to meet the rapidly growing market demand for such products. We believe China Botanic is attractively positioned to capitalize on the growing market opportunity in China's bio-pharmaceutical sector."

ABOUT CHINA BOTANIC PHARMACEUTICAL INC.

China Botanic Pharmaceutical Inc. is engaged in the research, development, manufacturing, and distribution of botanical products, bio-pharmaceutical products, and traditional Chinese medicines ("TCM"), in the People's Republic of China. All of the Company's products are produced at its three GMP-certified production facilities in Ah City, Dongfanghong and Qingyang. The Company distributes its botanical anti-depression and nerve-regulation products, biopharmaceutical products, and botanical antibiotic and OTC TCMs through its network of over 3,000 distributors and over 70 sales centers across 24 provinces in China.