ValueRich commences litigation against China Pharmaceuticals

ValueRich, Inc. (NYSE Amex: IVA) announced today that the company has commenced litigation against China Pharmaceuticals, a publicly traded company under the symbol (OTCBB: CFMI, CFMID) for breach of contract and other related claims. ValueRich alleges ownership of 20% of the outstanding shares of China Pharmaceuticals "pursuant to a May 2009 Consulting Agreement (the `Consulting Agreement') between ValueRich and Xian Pharmaceuticals, Ltd, the Chinese-based operating company for China Pharmaceuticals (`collectively, China Pharmaceuticals')."

“pursuant to a May 2009 Consulting Agreement (the `Consulting Agreement') between ValueRich and Xian Pharmaceuticals, Ltd, the Chinese-based operating company for China Pharmaceuticals (`collectively, China Pharmaceuticals').”

Pursuant to the terms of the Consulting Agreement, ValueRich agreed to provide assistance to China Pharmaceuticals in connection with their desire to become a publicly traded company in the United States. In exchange, China Pharmaceuticals agreed to compensate ValueRich with, among other things, the issuance and transfer of 20% of the shares of the proposed newly formed public company.

In July of 2009, upon the filing of a Form-S1 registration statement under the guidance of ValueRich, China Pharmaceuticals was fully positioned to become a publicly traded company, accomplishing the goals and objectives of the parties set forth in the Consulting Agreement. However, despite ValueRich's good faith performance under the Consulting Agreement, the public offering contemplated by China Pharmaceuticals was never consummated. Instead, China Pharmaceuticals terminated ValueRich, cancelled shares validly issued to ValueRich in the proposed new public company, and then preceded to go public through another source while refusing to compensate ValueRich.

ValueRich believes that the attempted "termination" by (OTCBB: CFMI, CFMID) China Pharmaceuticals is a transparent attempt by the company to circumvent their obligations to ValueRich in connection with the Consulting Agreement. In 2008, China Pharmaceuticals, with the assistance of ValueRich, converted its ownership structure to become wholly foreign-owned enterprise ("WFOE") through the organization of Xian Development Co., Ltd. ("Xian Development") as a wholly foreign-owned enterprise ("WFOE") organized under the laws of the People's Republic of China. Xian Development was wholly owned by China Qinba Pharmaceuticals, Inc. ("China Qinba"), its holding company in the United States. China Qinba later merged with a Nevada public corporation known as Allstar Restaurants, which changed its name to China Pharmaceuticals. Thus, ValueRich alleges that Xian Pharmaceuticals and China Pharmaceuticals have reaped the full benefit of the services provided by ValueRich under the Consulting Agreement to become a publicly traded company in the United States. ValueRich therefore seeks full compensation for the services it provided.

SOURCE ValueRich, Inc.