Bohai first quarter net revenues increase 22% to $17.0 million

Nov 20 2010

Bohai Pharmaceuticals Group, Inc. (OTCBB/OTCQB: BOPH), a China-based pharmaceutical company engaged in the production, manufacturing and distribution of Traditional Chinese Medicine (TCM) in China, today announced the availability of the transcript for its fiscal first quarter ended September 30, 2010 earnings conference call, held on November 15th.

During the conference call, Gene Hsiao, Bohai's Chief Financial Officer, stated:

"As we move into the second and third quarters of Bohai's 2011 fiscal year, we expect to increase marketing and advertising for our growing portfolio of TCM medicines. Although we will be monitoring the growth potential of the five new products we introduced in April and May of this year, we will continue to place a particular focus on our key revenue generating products: Lung Nourishing Cream, Tongbi Capsules and Tongbi Tablets. Not only are these products reimbursable through insurance in China, two of them are sheltered from competition in some way. Tongbi Capsules are a 'protected' medicine in China, meaning Bohai is the only manufacturer permitted to sell the product, and Lung Nourishing Cream was recently awarded a patent in June lasting 20 years."

Throughout the conference call Bohai's management team provided additional color on the Company's growing portfolio of TCM products, its enhanced awareness initiatives for US investors and, most notably, full details surrounding its record revenue and earnings numbers for the fiscal first quarter ended September 30, 2010, which include:

• Net Revenues of $17.0 million, an increase of 22% from $14.0 million in 2009
• Gross profit of $13.6 million, compared to $11.7 million in 2009
• Net income of $3.0 million, an increase of 57% from $1.9 million in 2009
• Fully diluted EPS of $0.15 for fiscal Q1 2011
• Basic EPS of $0.18 for fiscal Q1 2011, exceeding performance for Q1 2009

Interested parties are encouraged to read a transcript of the conference call, available here:

http://www.trilogy-capital.com/autoir/boph_autoir.html