Chengdu Tianyin files renewal application for High Tech Enterprise Status

Tianyin Pharmaceutical Co., Inc. (NYSE Amex: TPI, the "Company"), a pharmaceutical company that specializes in patented biopharmaceutical medicine, modernized traditional Chinese medicine, branded generics and active pharmaceutical ingredients (API) today announced that the operating subsidiary of TPI, Chengdu Tianyin Pharmaceutical ("Chengdu Tianyin"), has submitted the application for the renewal of its High Tech Enterprise Status at Chengdu, Sichuan Province of China.

Chengdu Tianyin is a wholly foreign-owned enterprise incorporated in the PRC and subject to PRC Foreign Enterprise Income Tax ("FEIT") Law. Chengdu Tianyin has been entitled to the preferential tax treatment for opening up its production facility in Western China in Sichuan Province. The applicable reduced preferential state enterprise income tax rate under this policy is 15% until December 31, 2010. If Chengdu Tianyin's High Tech Enterprise Status can be successfully renewed, it will reduce the current enterprise income tax to 15% for another three years from the beginning of 2011 calendar year.