Three new retail stores of China Yongxin Pharmaceuticals opened in 2009

China Yongxin Pharmaceuticals, Inc. (OTC Bulletin Board: CYXN; "China Yongxin Pharmaceuticals" or the "Company"), is a leading manufacturer, distributor and retailer of Chinese traditional medicines, pharmaceutical products, natural health products, health food, cosmetics, and medical equipment in Northeastern China. The Company today announced that it had opened three new stores in 2009.

Reflecting a transition in the Company's sales strategy, the Company opened three new retail stores in 2009. Among them, two stores are located in Tianjin City with an average operating area of 100 square meters per store. Covering a local customer population of 23,000, each store offers more than 1,500 products and has achieved an average revenue of $429 per store per day.

With an operating area of 140 square meters, the new store in Changchun City offers more than 3,000 products to a local customer population of 27,000. It has also realized an average revenue of $429 per day.

With the new stores, the Company now has 96 stores in total in China (including 22 franchisees), offering a broader product portfolio including 98% of the items listed on the recently issued Essential Drug List (EDL) in China. With expanded marketing activities, these new stores contributed to increased revenues in 2009 from the Company's retail drug operations, which increased by approximately 30% over the prior year. These new stores also helped to improve the Company's 2009 gross profit which was $15.2 million and gross margin of 32.6%, representing a significant improvement over the $11.9 million in gross profit and gross margin of 20.1% for 2008.

Mr. Yongxin Liu, Chairman and Chief Executive Officer of China Yongxin, commented, "With enhanced government support, specifically the commencement of China's $126 billion health care reform plan focused on providing a broader spectrum of healthcare services and pharmaceutical products to all Chinese residents, we are confident that our modernized logistics center and distribution channels, the broad customer base of our chain drugstores, our extensive product portfolio, and committed management team will enable us to resume our growth momentum and capitalize on a long- term, secular growth opportunity."