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PINGCHUAN SIGNS AGREEMENT WITH SINOPHARM

June 30, 2005

Pingchuan Pharmaceutical has signed a purchase and sale agreement with Sinopharm Medicine Holding Tianjin. Based on the agreement, Pingchuan authorizes Sinopharm Tianjin to be its non-exclusive franchisee in the metropolitan area of Tianjin. Also, Sinopharm Tianjin will purchase medicines produced by Pingchuan, totaling RMB5 million, and provide relevant information on production, marketing, clients, network and promotional activities.

PharmaLive

(http://www.medadnews.com/News/Index.cfm?articleid=252502)