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Skystar Bio-Pharmaceutical Company: Skystar Expands Micro-Organism Product Line Offering With Three New Products

^{Published on 2009-09-24 04:14:40 - Market Wire}
 

XI'AN, CHINA--(Marketwire - September 24, 2009) - Skystar Bio-Pharmaceutical Company (NASDAQ: [ SKBI ]) ("Skystar" or the "Company"), a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced that it has begun manufacturing and distributing its Health Protection Series line consisting of three new products designed to improve nutrition and increase feed additive utilization in pigs. These product introductions expand Skystar's micro-organism segment to 16 products. Skystar began shipping the new line to its direct customers and distributors in late August. In the first six months of 2009, Skystar's micro-organism product sales increased by 35.4% year-over-year and accounted for 26.1% of total revenues.

"The Health Protection Series is another example of how Skystar continues to look to capture market share and leverage our competitive advantage as a full solution provider with products that span the four major farming industry market segments," said Mr. Weibing Lu, Skystar's Chairman and CEO. "In 2008, we significantly reduced our production costs by producing a key raw material in-house. Now, in order to meet increasing demand, we are enhancing our production capabilities further by completing the construction of a new micro-organism facility that will increase capacity by almost 50%. We are on track to complete the facility late in the fourth quarter of 2009 and have targeted approximately $2.7 million in revenue and $1.9 million in gross profit in 2010 from our micro-organism production line expansion."

Skystar's Health Protection Series of products are intended to accelerate digestion and absorption of proteins and nutrients from feed, utilize feed additives more efficiently and increase growth rates in pigs. Unlike some competing products, Skystar's Health Protection Series line does not contain harmful chemicals and the products have shown no adverse side effects.

About Skystar Bio-Pharmaceutical Company

Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, micro-organisms, vaccines and feed additives) and over 170 products, with over 40 additional products in the developmental stage. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit [ http://www.skystarbio-pharmaceutical.com ].

To be added to the Company's email distribution for future news releases, please send your request to [ skystar@tpg-ir.com ].

Forward-looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.