Renhuang Pharmaceuticals Inc. Announces Full Independent Market Harmonics Research Report Released Reiterating a Buy Rating and

Renhuang Pharmaceuticals, Inc. is pleased to announce the full release of Market Harmonics' independent research report affirming its Buy Rating and 5 dollar price target.

(PRWEB) October 24, 2007 -- Renhuang Pharmaceuticals, Inc. (www.renhuang.com) (or "the Company", Stock symbol: RHGP.OB (http://finance.yahoo.com/q?s=RHGP.OB)), a leading integrated developer, manufacturer and distributor of a broad line of high-quality nutraceutical, natural medicinal and bio-pharmaceutical products in the People's Republic of China (PRC), is pleased to announce the full release of Market Harmonics' independent research report affirming its Buy Rating and 5 dollar price target.

Tony Carrion, founder of Market Harmonics said in his report, “Renhuang’s revenues compare favorably to some of its larger Chinese competitors, and the company has maintained average profit margins of 40% since 2005. When considering its performance relative to that of its peers and sector, we find the current valuation of the company’s stock to be compelling, and affirm our preliminary 12-month target of $5.00.”

“Taking into account the stronger seasonality, continued improved cost efficiencies and the ability to bring more production online, we think it not unreasonable for Renhuang to have a slightly stronger finish for FY 2007 as it begins to take advantage of stepped-up production going into the end of the fiscal year (October 31). We further believe it possible for the company to achieve twice FY 2007 revenues, as it will be able to double production output once the resources of the Qingyang Herbal Extracting Factory are fully put online in 2008,” reported Tony Carrion.

The “Buy Rating” as defined by Market Harmonics signifies that they, “Regard the company’s valuation to be attractive relative to its peers, and that the company’s business model, as well as any other significant advantages it enjoys in the sector/industry in which operates, justifies investor consideration.”

Details of the Company's financial data for the quarter ending July 31, 2007 are available in the Company's Quarterly Report 10Q dated and filed with the Securities and Exchange Commission on September 19, 2007.

About Renhuang Pharmaceuticals, Inc.:

Renhuang Pharmaceuticals (www.Renhuang.com), located in Harbin of Heilongjiang Province in Northeast China, is a leading integrated developer, manufacturer and distributor of a broad line of high-quality nutraceutical, natural medicinal and bio-pharmaceutical products. The Company provides three major product lines including the Acanthopanax-based natural medicinal products, Shark Power Health Care series and Traditional Chinese Medicines. Renhuang's key product line is Acanthopanax-based products, an effective natural medicine in treating depression and melancholy and offering various other health benefits. By controlling an estimated 70% of China's natural resource of Acanthopanax (also known as Siberian Ginseng), the Company has a dominant market position in Acanthopanax-based natural medicines. The Company distributes its products through a multi-layer sales network of over 2000 sales agents. Its products are not only sold nationwide but also exported to Russia and Southeast Asia.

Renhuang has established a multi-channel research and development infrastructure composed of in-house researchers, a post-doctoral working center, and collaboration with well known institutions and scientists. The Company has achieved a significant progress in research & development of standard extraction, separation of effective components, and medication with specificity. Several of these products have already been submitted for approval by the State Food and Drug Administration ("SFDA"). These products are expected to have a substantial upside growth potential due to their insufficient supply in China. In manufacturing, the Company strictly follows the international GMP certified quality standards and system by utilizing cutting-edge technologies, state of the art equipment, and proprietary innovative and award winning processes. RHGP-G

Safe Harbor Statement

This press release contains certain statements that may include 'forward-looking statements' as defined in the Securities Act of 1933, and the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein are 'forward-looking statements.' 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 and available from the Securities and Exchange Commission. 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.

SOURCE: Renhuang Pharmaceuticals, Inc.

Renhuang Pharmaceuticals Inc Gina Gao, 0086-451-57620378 [email protected]

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