China Sky One Medical Confirms Continued Sale of Seven of Eight Products on the Ministry of Health's Warning List

HARBIN, China, Feb. 23 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (Nasdaq: CSKI), a leading fully integrated pharmaceutical company producing over-the-counter drugs in the People's Republic of China ("PRC"), today provided an update on the status of its eight products which were included in the No. 17 official announcement from the Ministry of Health of 2009 ("the Warning List").

In 2009, eight products manufactured by China Sky One Medical's main operating subsidiary, Harbin Tian Di Ren Medical Science and Technology Company ("TDR") were included on the Warning List due to product descriptions that may have been misleading to consumers. From the descriptions on the packaging it was unclear that the eight products, sold under the "Kangxi" brand, which included Coryza spray, Tinea Pedis spray, Tinea Pedis powder, two Gynecopathy Cleaning spray (For Men and Normal), Yelaixiang deoderant spray, Chufeng Tongluo spray and Yin Ke cream, were all registered in the PRC as "Disinfectant Products" rather than "Drugs." In the PRC, "Disinfectant Products" are a special category of medicinal products which are used to treat external skin diseases, known as dermatosis, and are sold over the counter.

The Company ceased the production of the Yelaixiang deodorant spray (30ml/box) as of January 1, 2009, due to low sales volume. After the Warning List was publicized, the Company immediately consulted with the Bureau of Health ("Bureau") in Heilongjiang Province, where TDR is located. Based on guidance from the Bureau, the Company immediately revised product descriptions on the packages of the remaining seven products, which were then approved by the Bureau for continued commercial sales. There were no product recalls or disruption to manufacturing of these products as the revisions were only related to packaging and not the quality of the products. As a result, the revision of the packaging descriptions did not have a material impact on the Company's business in 2009. These seven drugs accounted for 4.5% of the Company's total revenues in 2009. However, with growth in certain of the Company's other products, these seven "Disinfectant Products" are expected to represent a lower percentage of the Company's total sales going forward.

"With about 30,000 disinfectant products in China, there is an overabundance of supply in this market. We believe that more stringent government regulation to clarify the difference between 'Disinfectant Product' and 'Drug' in the PRC will be beneficial to our Company because it may increase demand for China Sky One Medical's competing anti-infective 'Drug' products included in our rich product portfolio," said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical. "Among the 91 products that we sell, 30 are included in the 2009 Edition of the National Basic Medical Insurance, Industrial Injury Insurance and Maternity Insurance Medicine Directory and 17 are included in the National Basic Medicine Catalog. As one of few manufacturers who produce and supply anti-infective 'Drug' products in China, we believe the Company is competitively positioned in a well regulated market."

About China Sky One Medical, Inc.

China Sky One Medical, Inc., a Nevada corporation, is a holding company. The Company engages in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company ("TDR"), Harbin First Bio-Engineering Company Limited ("First"), Heilongjiang Tianlong Pharmaceutical, Inc. ("Tianlong") and Peng Lai Jin Chuang Pharmaceutical Company ("Jin Chuang") the Company manufactures and distributes over-the-counter pharmaceutical products, which make up its major revenue source. For more information, visit http://www.cski.com.cn .

Safe Harbor Statement

Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include the sales forecast. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

    For more information, please contact:

    Company Contact:

    China Sky One Medical, Inc.
     Mr. Stanley Hao, CFO
     Tel:   +86-451-8703-2617
     Email: [email protected]

    Investor Relations Contact:

    CCG Investor Relations
     Ms. Lei Huang, Account Manager
     Tel:     +1-646-833-3417
     Email:   [email protected]
     Website: http://www.ccgirasia.com

     Ms. Mabel Zhang, Vice President
     Tel:   +1-310-954-1353
     Email: [email protected]

SOURCE China Sky One Medical, Inc.