Heilongjiang Tianlong Pharmaceutical changes R&D focus to antibiotics and cardiac drugs

China Sky One Medical, Inc. ("China Sky One Medical" or "he Company") (Nasdaq: CSKI), a leading fully integrated pharmaceutical company developing and producing over-the-counter drugs in the People's Republic of China ("PRC"), today announced that Heilongjiang Tianlong Pharmaceutical Company ("Tianlong"), the Company's wholly owned subsidiary, will change its R&D focus from external use medicines to antibiotics and cardiac drugs.

The change in Tianlong's R&D strategy is designed to build a solid foundation for the Company's future growth. Tianlong possesses one of the most complete portfolios of external use medicines in China. By focusing on the development of antibiotics and cardiac drugs, China Sky One Medical expects that Tianlong will be able to benefit from the increasing demand for prescription drugs as basic medical insurance coverage expands in China. Antibiotics represent the largest drug category in China, accounting for 20%-25% of total sales of western medicines. Medicines for the treatment of cardiac diseases represent the third largest drug category following cancer drugs, and account for roughly 15% of total sales of chemical medicines in China.

The Company plans to introduce five new antibiotics including Cefmetazole Sodium for injection, Cefodizime Sodium for injection, Aztreonam for injection, Teicoplanin for injection, Voriconazole Powder Solution for infusion, and two cardiac drugs, Amrinone for injection and Milrinone for injection. The Company has completed a feasibility analysis and experimental research, and has mastered the production technology. As a result of this initiative, China Sky One Medical will strengthen its distribution channel for prescription drugs by engaging more qualified commercial medical companies.

"We look forward to more breakthroughs in the development of antibiotics and cardiac drugs and will strive to obtain final SFDA approvals for the production of our seven new drugs as soon as possible," said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical. "The demand for better health care and drugs is increasing rapidly, and we see this as an opportunity to capitalize on the growth of China's fragmented pharmaceutical industry."