PRESS RELEASE: Skystar Bio-Pharmaceutical Establishes R&D Center in Shanghai

Skystar Bio-Pharmaceutical Establishes R&D Center in Shanghai

XI'AN, China, Dec. 4 -- Skystar Bio- Pharmaceutical Co., Ltd. ("Skystar," "Company"), a leading bio-pharmaceutical company in the People's Republic of China ("PRC"), today announced that it recently established a new research and development center ("R&D Center") in Shanghai.

The R&D Center, registered as Shanghai Siqiang Biotechnology Co., Ltd., utilizes advanced professional equipment such as liquid chromatography and infrared dissolution and infiltration equipment. The 200-square-meter facility is staffed with six chief researchers, four of whom are from the Chinese Academy of Agricultural Sciences ("CAAS"). The CAAS researchers have participated in national key science and technology projects, and have published numerous academic papers in Chinese and foreign journals.

Among the CAAS researchers, is the distinguished Ms. Lingmei Jin. Ms. Jin has presided over many high-level scientific research projects including two national projects, a CAAS Dean Foundation project, a Swedish International Scientific Research Foundation project and seven provincial projects. She has also worked with other team members to co-establish a near-infrared laboratory for Degussa Pacific Ltd., and has cooperated with international companies such as the Finnish company, Finnish Forage Co., Ltd., and the German firm, BASF. Ms. Jin has also published over 80 research papers in domestic and foreign journals, as well as three translated and monograph works.

"Our new R&D Center further strengthens our capabilities with experienced and distinguished professionals in each of our three key product areas. We look forward to working with Ms. Jin and the rest of our new research team to develop vaccines for common diseases among humans and animals, medicines for parasitic diseases, and microorganism products that include probiotics and antibiotics," commented Skystar's Chief Executive Officer, Mr. Weibing Lu. "By locating our R&D center in Shanghai, the economic center of China, we believe the facility will attract high-level talent from all over the country and serve as a base to cultivate future talent."

About Skystar Bio-Pharmaceutical

Skystar Bio-Pharmaceutical Company is a China-based producer and distributor of vaccines, microorganisms and veterinary medication to cure and prevent disease in poultry, livestock, birds and pets. The Company's product line consists of more than 100 products with over 50 additional products in the developmental stage. Skystar has formed strategic sales distribution networks throughout China. The Company recently completed construction of new state-of-the-art bio-pharmaceutical facilities covering an area of almost eight acres. The new facilities meet or exceed all Good Manufacturing Practice (GMP) Certification Standards and have received GMP Certification from the Chinese government. For additional information, please visit .

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Such factors include, but are not limited to the Company's ability to develop new products, market acceptance of the company's new products, ability to obtain the regulatory approvals or clearances that are necessary to commercialize its products, ability to protect proprietary rights, political and economic factors in the People's Republic of China and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.