China Botanic Receives Patent on its Schisandra Lignin Extraction Method

 HARBIN, China, July 24, 2012 /PRNewswire-Asia/ -- China Botanic Pharmaceutical Inc. (NYSE AMEX: CBP) ("China Botanic" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and Traditional Chinese Medicines ("TCM") in China, today announced that the Company was recently granted a new patent (Patent No: ZL 201010119871.7) on its advanced proprietary Schisandra Lignin Extraction Method. The new patent grant followed a two year process of comprehensive evaluation conducted by the State Intellectual Property Office of the People's Republic of China ("SIPO"). SIPO completed a preliminary review of China Botanic's patent application in May 2010. On July 4, 2012, the Company was granted the patent on its Schisandra Lignin extraction method and Schisandra-based products with market exclusivity for a period of 18 years. In addition to the new patent on its Schisandra Lignin extraction method, the Company also currently owns a patent on the extraction of effective ingredients of Siberian Ginseng and its preparation and application. Research in China suggests that Schisandra is a wild plant with significant medical and health benefits. Schisandra has been found to prevent liver damage and is an effective sedative for treating insomnia and central nervous system depression. Additionally, research indicates Lignin compounds are a good source of powerful anti-oxidants with promising benefits in fighting major conditions, including HIV, cancer and high blood pressure. China Botanic's proprietary Schisandra lignin extraction method enables the Company to obtain higher purity of lignin and remove impurities from the plant, resulting in extract with over 50% lignin, which may substantially enhance the efficacy of medicines produced from these compounds. "We are pleased to receive the patent on our proprietary Schisandra Lignin Extraction Method, which positively reflects on our research capabilities to develop new medicines," said Mr. Shaoming Li, Chairman and CEO of Renhuang Pharmaceuticals, Inc. "We at China Botanic are committed to enhancing our research and development potential and strive towards developing products that benefit our consumers and society. We believe securing patents on our products and technology strengthens our ability to market them effectively and deliver long term shareholder value. We will continue to execute on our intellectual property strategy and expand our patent portfolio."

About China Botanic Pharmaceutical Inc. China Botanic Pharmaceutical Inc. is engaged in the research, development, manufacturing, and distribution of botanical products, bio-pharmaceutical products, and traditional Chinese medicines ("TCM"), in the People's Republic of China. All of the Company's products are produced at its three GMP-certified production facilities in Ah City, Dongfanghong and Qingyang. The Company distributes its botanical anti-depression and nerve-regulation products, biopharmaceutical products, and botanical antibiotic and OTC TCMs through its network of over 3,000 distributors and over 70 sales centers across 24 provinces in China. For more information, please visit www.renhuang.com. Safe Harbor Statement This press release contains certain statements that may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's beliefs, assumptions and expectations of the Company's future operations and financial performance, taking into account the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known that may cause actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial condition expressed or implied in any forward-looking statements. These forward-looking statements are based on current plans and expectations and are subject to a number of uncertainties including, but not limited to, the Company's ability to manage expansion of its operations effectively, and other factors detailed in the Company's annual report on Form 10-K and other filings with the Securities and Exchange Commission. 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. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein.