China BCT to Expand its Retail Pharmacy Footprint in Guangxi With the Opening of 17 New Stores

LIUZHOU CITY, China, Feb. 22, 2011 /PRNewswire-Asia-FirstCall/ -- China BCT Pharmacy Group, Inc., (OTC Bulletin Board: CNBI), ("China BCT" or the "Company"), a leading pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China, today announced plans to launch 17 new retail pharmacies in Guangxi, further expanding its footprint in the region.

The new stores, which will be operated under the "Baicaotang" brand name, primarily will be located in well-populated cities, including Liuzhou, Hechi, Hezhou, Guigang, Laibin and Guilin. The Company has started the build out process and estimates that the new stores will require total capital expenditures of RMB 8.5 million (approximately US$1.3 million) and will have an average pay back period of between 2.5 and 3 years.  

The Company expects seven of the stores to become fully operational in March 2011, followed by the launch of ten stores during the second quarter of 2011 upon completion of renovations and receipt of required government business licenses.

China BCT estimates that these seventeen new stores, as a group, will generate RMB 15.5 million (approximately US$2.4 million) of annualized revenue. With an average size of 90 square meters, the stores will offer a diversified range of pharmaceutical products including nutracuticals, cosmetics, Chinese herbal medicine and the Company's private label pharmaceutical products.

"To strengthen our market penetration within Guangxi Province, we continue to pursue a two-pronged strategy of acquiring existing retail pharmacies and launching new stores. We believe that by developing high-quality, strategically-located pharmacies like these, we better position China BCT to benefit from China's healthcare reform," said Mr. Hui Tian Tang, Chairman and Chief Executive Officer of China BCT. "In addition to launching our own stores, we intend to continue to selectively acquire suitable retail stores as China's retail pharmaceutical industry undergoes rapid consolidation. By vertically integrating our growing retail network with our wholesale distribution and manufacturing businesses, we expect to achieve meaningful operating synergies and enhanced long term financial performance."

About China BCT

China BCT is engaged in pharmaceutical distribution, pharmacy retailing, and the manufacture of pharmaceuticals products through its subsidiaries Guangxi Liuzhou Baicaotang Medicine Limited, Hefeng Pharmaceutical Co. Limited, and Guangxi Liuzhou Baicaotang Medicine Retail Limited in Guangxi province, China. It operates a large regional retail network in Guangxi province, consisting of 187 directly owned retail stores in Guangxi province and currently over 8,000 products are distributed through the Company's wholesale distribution network. For more information, please visit www.china-bct.com .

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include estimates and other statements reflecting expectation and involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including: changes from anticipated levels of sales; future international, national or regional economic and competitive conditions; changes in relationships with customers; access to capital; difficulties in developing and marketing new products and services; marketing existing products and services; customer acceptance of existing and new products and services; and other factors detailed in the Company's periodic filings with the Securities and Exchange Commission (http://www.sec.gov). Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation.

SOURCE China BCT Pharmacy Group, Inc.