Weikang Bio-Technology Launches Licorice Flavonoid Project

HARBIN, China, June 9 /PRNewswire-Asia-FirstCall/ -- Weikang Bio-Technology Group Co., Inc. (BULLETIN BOARD: WKBT) ("Weikang" or the "Company"), a leading developer, manufacturer and marketer of Traditional Chinese Medicine (TCM), Western prescription and OTC pharmaceuticals and other health and nutritional products in the People's Republic of China, today announced that the Company is launching a new project to research and develop licorice flavonoids for use in therapeutics. Weikang anticipates sales of therapeutics derived from the project will add approximately $13 million to annual revenue and approximately $5.7 million in annual after-tax net income.

Licorice contains glycyrrhetinic acid, which, in addition to being widely used as a flavoring agent, has also been shown to be effective in treating conditions and afflictions such allergies, hepatitis, inflammation and swelling, including peptic ulcers, hypertension, excessive potassium in the body, skin conditions, viral infections, tumor formation and weight loss.

"We are extremely excited to launch the Licorice Flavonoid Project which we believe will be one of the premier sources in China for research and development of extracting and use of glycyrrhetinic acid as a therapeutic. Glycyrrhetinic acid has been proven to provide numerous health benefits for a variety of aliments and through the use of our state-of-the-art technology we expect to be able to produce high quality therapeutics using this important medicinal compound," commented Mr. Yin Wang, Chairman and CEO of Weikang Bio-Technology Group. "Moreover, Heilongjiang Association of TCM conducted a study at our request on the therapeutic benefits of licorice flavonoids and verified that there are multiple benefits to be derived from this compound and is providing their full support for the project."

To ensure Weikang is able to develop the highest quality glycyrrhetinic acid compounds, the Company will use several advanced technologies to extract, isolate and purify the licorice flavonoid substance. The technologies Weikang intends to use include supercritical carbon dioxide extraction technology to produce superior quality herbal extracts, column chromatography (CC) to isolate and purify compounds and high-performance liquid chromatography (HPLC) to separate, identify, and quantify compounds based on their idiosyncratic polarities. One of the Company's first research projects will be on licorice flavonoids effectiveness in treating tumors which will include running systematic studies of clinical prescription categorization, doze type, pharmacology, toxicity, stability tests and ensuring quality standards.

In addition to the research, development and production of licorice flavonoid based therapeutics, the Licorice Flavonoid Project will directly benefit the local economy by adding jobs, increasing investment in technology and boosting demand for local licorice planting and processing. Due to the positive effects on the local economy, preferential tax treatments from the government are anticipated.

The total investment for the Licorice Flavonoid Project is expected to be $6.58 million, including $2.93 million in R&D; and the first full year of production expected to yield a return on investment of 86%. The construction of the new factory and purchase of equipment will start upon the successful completion of the R&D. Weikang is targeting to begin production of therapeutics developed from glycyrrhetinic acid in 2011 and to reach the full design output of the new factory by 2012.

About Weikang Bio-Technology Group Co., Inc.

Weikang Bio-Technology Group Co., Inc. is principally engaged in developing, manufacturing and distributing Traditional Chinese Medicine (TCM), and health and nutritional supplements in China, in compliance with requisite Chinese licenses and approvals. The Company is also expanding its business scope to develop, manufacture and distribute Chinese herbal extract products and GMP certified western prescription and OTC pharmaceuticals through its acquisition of Tianfang. For more information, please visit http://www.weikangbio.com/ .

Safe Harbor Statement

This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov/). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For more information, please contact: Company contact: Ren Hu, VP of Finance Weikang Bio-Technology Group Co., Inc. US Tel: [phone] China cell: [phone] Email: [e-mail] Investors Relation contact: John Marco, Partner, Elite IR Tel: [phone] Email: [e-mail] Leslie J. Richardson, Partner, Elite IR Tel: [phone] Email: Leslie.richardson elite-ir.com

Weikang Bio-Technology Group Co., Inc.

CONTACT: Company contact: Ren Hu, VP, Weikang Bio-Technology Group Co.,
Inc., US Tel: [phone], or China cell: [phone], or
[e-mail]; or Investors Relation contact: John Marco, Partner, Elite IR,
[phone], or [e-mail]; or Leslie J. Richardson, Partner,
Elite IR, [phone], or [e-mail]

Web site: http://www.weikangbio.com/