China Yongxin Pharmaceuticals is Selected as the Sole Pharmaceutical Distributor for Shenyang Military Region Medical Centers Located Throughout China's Northeastern Region

CHANGCHUN, China and LOS ANGELES, April 14 /PRNewswire-Asia/ -- China Yongxin Pharmaceuticals Inc. (OTC Bulletin Board: CYXN) (the "Company" or "China Yongxin"), a fast-growing, vertically-integrated health products company in China, today announced that on March 10th, 2010, the Company's subsidiary, Changchun Yongxin Dirui Medical Co. Inc. ("Yongxin Dirui") was selected as the sole pharmaceuticals distributor for the Shenyang Military Region medical centers located throughout 3 of China's northeast region provinces, including Jilin, Liaoning and Heilongjiang. According to the new healthcare reform policy of the Chinese government, the distribution of essential drugs to clients such as the Shenyang Military Region medical centers must be approved by the provincial government through a public bidding process. China Yongxin, with its strong geographic presence and distribution capability in the northeast region, won sole distribution rights through this competitive bidding process. The Company celebrated this milestone and attended a signing ceremony held in Changchun, China.

Yongxin Dirui is the largest pharmaceutical company that is equipped with state-of-the-art logistic facilities in Jilin province. Since 2005, China Yongxin's pharmaceuticals logistic center installed modern GSP in its storage facilities, which store a variety of pharmaceutical products that require different temperature and storage requirements. The Company's logistic centers are equipped with modern machinery and over 30 delivery trucks covering all of the main cities within the northeast region in China.

In order to win these distribution rights, China Yongxin developed a detailed logistics plan and built a distribution center in Harbin, which is the capital of Heilongjiang province. Additionally, the distribution center was approved by the Heilongjiang Food and Drug Administration to ensure timely delivery to the Shenyang Military Region medical centers. The adoption of the distribution center will also be helpful for additional order fulfillment in the region.

Becoming the sole distributor for the military medical network in the northeast region is expected to significantly enhance Yongxin Dirui's distribution business across different provinces. From this development, management projects an increase of approximately $1 million or more in annual revenues. Currently, Jilin province's 60 cities have a total of 1,386 medical institutions including 545 medical institutions rated secondary or above*, 624 village hospitals and 217 community medical service centers. China Yongxin distributes 290 out of 307 drugs, representing 94%, and 3160 out of 4935 categories, representing 64%, of the products that are listed on the National Essential Drug List. The Shenyang Military Region has 9 medical centers in 8 cities throughout Jilin and Heilongjiang.

Mr. Yongxin Liu, Chairman and CEO of China Yongxin commented, "We have always been very confident about the capacity of our advance distribution system because we currently own one of the most state-of-the-art facilities in the country. We are very proud that we have won these distribution rights through a public bidding process, to become a sole distributor in these centers. We look forward to actively bidding for additional opportunities with other medical networks throughout the country."

Note:

*According to the Chinese government rating standard, secondary or above rating represents higher-level medical institutions.

About China Yongxin Pharmaceuticals, Inc.

Founded in 1993, China Yongxin is a vertically-integrated retailer and distributor of Chinese traditional medicines, pharmaceutical preparations, natural health products, health food, cosmetics, and medical equipment in northeastern China. Its retail operations began in 2004, and in 2005, it gained franchise rights from one of the world's largest drug chains for China's Jilin province. By the end of 2007, the Company had become one of the fastest growing drug retailers in China through its retail chain of 93 drug outlets as well as wholesale distribution and manufacturing operations in northeastern China. For more information about China Yongxin Pharmaceuticals, Inc., please visit http://www.yongxinchina.com .

Forward Looking Statements

This news release contains certain "forward-looking statements." Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and many of which are beyond the Company's control. The forward-looking statements are also identified through the use of words "believe," enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict" "probable," "potential," "possible," "should," "continue," "project", "expect" and other words of similar meaning. Actual results could differ materially from these forward-looking statements as a result of a number of risk factors detailed in the Company's periodic reports filed with the SEC. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved. China Yongxin Pharmaceuticals Inc. does not assume any duty to publicly update or revise the material contained herein.

    For more information, please contact:

    CORPORATE
     China Yongxin Pharmaceuticals Inc.
     Sam Liu, COO
     Phone: +1-626-581-9098
     Email: [email protected]

    INVESTOR RELATIONS
     Strategic Growth International, Inc.
     Richard Cooper / Linda Ni
     Phone: +1-212-838-1444
     Email: [email protected] ; [email protected]

SOURCE China Yongxin Pharmaceuticals Inc.