Renhuang Wins Bid to Supply All-Natural Products to Guangzhou Military District

HARBIN, China, June 17 /PRNewswire-Asia-FirstCall/ -- Renhuang Pharmaceuticals, Inc. (Pink Sheets: RHGP) ("Renhuang" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM"), today announced that on June 11, 2010, Renhuang won a major one-year contract bid to supply its all-natural products to Guangzhou Military District, an important new sales distribution channel that includes supply to military hospitals and armed forces across many provinces in China. Renhuang expects this new contract to generate additional revenues of approximately $0.6 million in 2010 and $1.2 million in 2011.

Guangzhou Military District officials informed Renhuang that the Company had been successful in its bid to supply its plant-based Shengmai Granules, a gynecological medication, Tianma headache tablets, and Siberian Ginseng series products to the Guangzhou Military District's medical purchasing department. The order marks the Company's first major sale to a military medical distribution channel. Renhuang is the leader in the production and development of Siberian Ginseng medicines, which possess scientifically-established medical benefits, including sleep improvement qualities.

The Guangzhou Military District is one of the most important of China's military administrative regions and includes military hospitals and other medical facilities in Hubei, Hunan, Guangdong and Hainan provinces, as well as in Hong Kong and Macau.

"The military distribution opportunity presents an important channel for Renhuang and the Company is excited to be selected to provide our safe and effective plant-based medicines to China's military forces," said Mr. Shaoming Li, Chairman and Chief Executive Officer of Renhuang. "We will continue our efforts to secure additional supply contracts from Guangzhou Military District and other military procurement network, which represent an attractive growth and expansion opportunity given the significant size of the Chinese military. Our ability to build a relationship with the military procurement network demonstrates the value of our innovative sales strategies and will further diversify Renhuang's sales channels."

ABOUT RENHUANG PHARMACEUTICALS, INC.

Renhuang Pharmaceuticals, 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. Company Website: http://www.renhuang.com .

Safe Harbor Statement

This press release contains certain statements that may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's beliefs, assumptions and expectations of the Company's future operations and economic performance, taking into account the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known that may cause actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial condition expressed or implied in any forward-looking statements. These forward-looking statements are based on current plans and expectations and are subject to a number of uncertainties including, but not limited to, the Company's ability to expand its military distribution sales channel, achieve its estimated sales under the new contract with the Guangzhou Military District, ability to manage expansion of its operations effectively, and other factors detailed in the Company's annual report on Form 10-K and other filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein.

    Company Contact:

     Renhuang Pharmaceuticals, Inc.
     Ms. Portia Tan, IR Contact
     Phone: +86-451-8260-2162
     Email: [email protected]

    CCG Investor Relations:

     Ms. Lei Huang, Account Manager
     Phone: +1-646-833-3417 (New York)
     Email: [email protected]
     Web:   www.ccgirasia.com

     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: [email protected]

SOURCE Renhuang Pharmaceuticals, Inc.