Key Government Objectives aimed to align prices with the quality of medications while accelerating growth for Chinese Traditional Medicines

CHENGDU, China, Feb. 9 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical Co., Inc., (NYSE Amex: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") and Western Pharmaceuticals based in Chengdu, China, today announced that it expects operational benefits from the recently published Guide to Reform of Pricing Mechanism of Medicine and Medical Services by the Chinese government.

On November 9, 2009, the Chinese National Development and Reform Commission, the Ministry of Health, and the Ministry of Human Resource and Social Security released a comprehensive Guide proposed to protect and foster the development of Chinese Medicine, which is aimed at benefiting the pharmaceutical companies focusing on specialized Chinese medicines like Tianyin Pharmaceuticals. The Guide requires that the pricing of medicine and medical services should reflect the quality differential. As such, the government will support higher sales prices set by the overall market for pharmaceutical companies which develop specialized products with strong efficacy for specific indications. The Guide also defined maximum profit margins for national and local distributors, which will further reduce the overall distribution costs of medicine and improve margins for the producers.

"We have spent considerable resources analyzing all aspects and implications of the new pricing mechanism Guide and are confident that Tianyin's portfolio will enjoy enhanced pricing as the benefits of several of our leading proprietary TCM products are well recognized by the marketplace," Dr. Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc., commented. "In addition, the Guide requires uniform pricing for all generic medicine which we believe will help us improve our gross margins through effective cost management and production efficiencies as overall production volumes increase. In addition, the Guide encourages new product innovation by allowing higher profit margins for companies like Tianyin who are focused on developing and commercializing differentiated drugs that meet consumer needs."

The Company has 23 drugs which are currently reimbursed by government medical insurance.

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. Tianyin currently has 48 SFDA approved products, 41 which are manufactured and marketed. 22 of these products are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has also maintains a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 730 salespeople. The Company is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma.com .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net

SOURCE Tianyin Pharmaceutical Co., Inc.

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