Biostar Pharmaceuticals, Inc. Reports Record Revenues and Earnings for 2008

Sales Up 118% to $33 Million, Net Income Increased 69% to $6.7 Million Over
Prior Year

NEW YORK, April 7 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals,
Inc. ("Biostar" or the "Company") (OTC Bulletin Board: BSPM) today reported
financial results for the 12 months ended December 31, 2008.
Highlights for Year Ended December 31, 2008:

-- Total net sales for the year were $33.9 million, up from $15.9 million
for 2007.
-- Net Income for the year increased 69% to $6,690,542 as compared to
$3,963,524 in 2007.
-- Completed acquisition of 8.6 acres land in Xi'an. Construction of
on-site raw material processing plant to commence in Q2.
-- Launched the China Hepatitis Internet Hospital
( http://www.zggbyy.com ), a multi-purpose site providing quality care,
products and support to patients afflicted with hepatitis.

Overview
The Company reported revenue of $33,910,922 for the year ended December
31,
2008 as compared to $15,887,486 for 2007. Net Income for 2008 was $6,690,542,
or $0.22 per share on a fully diluted basis, versus $3,963,524 and $0.19 per
share, respectively, for 2007.
This increase in revenue and net income reflects an increase in sales of
all five of Biostar's State Food and Drug Administration ("SFDA") approved
drugs, most notably the Xin Aoxing Oleanolic Acid Capsule, the only SFDA-
approved, over-the-counter (OTC) treatment for hepatitis B. The increase in
sales is also attributed to the continued implementation of the Company's
"Blue Sea" project, which markets products directly to consumers in rural
China through retail pharmacies at higher retail prices. Domestic PRC
customers account for 100% of Biostar's sales.
Ronghua Wang, Chairman and Chief Executive Officer of the Company, stated,
"I am quite pleased with the Company's performance in 2008. Our targeted
marketing programs and strategic pricing increases resulted in the doubling of
revenues on existing products. We continue to strengthen our sales and
marketing efforts, particularly for high-demand products such as our Oleanlic
Acid Capsule. With the only SFDA-approved OTC product, and an estimated 120
million hepatitis B patients in China, we believe this product, in conjunction
with the other products and services offered through our China Hepatitis
Internet Hospital represents a substantial opportunity for Biostar."
Mr. Wang went on to say, "We were also successful in initiating a number
of projects which will serve as a foundation for our continued growth in the
future. Most recently we received permits to begin construction on a new raw
materials processing facility. This is a critical step in enabling us to
reduce our cost of goods while improving the quality of our products going
forward. We expect to reap the benefits from this processing facility
starting by the end of this year, with the future anticipated benefits being
very significant."

BIOSTAR PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended
December 31,
2008 2007

Sales, net $33,910,922 $15,887,486

Cost of sales 14,059,343 5,224,556

Gross profit 19,851,579 10,662,930

Selling, general and
administrative expenses 12,089,937 5,817,167

Income from operations 7,761,642 4,845,763

Other Income (Expense)
Interest income 2,911 3,492
Interest expense (40,615) (60,292)
Other 6 (33)
Foreign exchange loss -- (3,970)
Total other Income (Expense) (37,698) (60,803)

Income before income taxes 7,723,944 4,784,960

Provision for income taxes 1,033,402 821,436

Net income $6,690,542 $3,963,524

Deemed dividend from beneficial conversion
feature of Series A preferred stock (1,462,240) --

Net income applicable to common
shareholders $5,228,302 $3,963,524

Net income per common share
Basic $0.23 $0.20
Diluted $0.22 $0.19

Weighted average common shares
outstanding
Basic 22,369,434 20,220,037
Diluted 23,257,470 20,858,278

BIOSTAR PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEETS

December 31, December 31,
2008 2007

ASSETS
Current Assets
Cash and cash equivalents $758,316 $2,286,419
Accounts receivable 11,700,841 4,123,135
Inventories 315,745 207,895
Prepaid expenses and other receivables 2,926,505 18,225
Total Current Assets 15,701,407 6,635,674

Property and equipment, net 5,930,467 6,206,994

Intangible assets, net 7,365,765 7,404,011

Total Assets $28,997,639 $20,246,679

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Accounts payable and accrued expenses $2,191,976 $537,780
Customer advances 2,592,250 2,412,846
Short-term bank loan -- 519,544
Value-added tax payable 527,103 298,032
Income tax payable 413,205 187,089
Total Current Liabilities 5,724,534 3,955,291

Commitment

Stockholders' Equity
Series A, convertible preferred stock,
$0.001 par value, 5,000,000 shares
authorized, 0 and 72,500 shares issued
and outstanding at December 31, 2008
and 2007 -- 725,000
Undesignated preferred stock, $.001 par
value, 5,000,000 shares authorized,
none issued and outstanding -- --
Common stock, $.001 par value, 100,000,000
shares authorized, 23,240,899 shares
issued and outstanding at December 31,
2008 and 2007 23,241 22,152
Additional paid-in capital 10,430,168 8,244,017
Statutory reserves 1,585,383 902,113
Retained earnings 10,996,655 6,451,623
Accumulated other comprehensive
income (loss) 237,658 (53,517)
Total Stockholders' Equity 23,273,105 16,291,388

Total Liabilities and
Stockholders' Equity $28,997,639 $20,246,679

ABOUT BIOSTAR PHARMACEUTICALS, INC.
BioStar Pharmaceuticals, Inc., through its wholly-owned subsidiary in
China, develops, manufactures and markets pharmaceutical and medical nutrient
products for a variety of diseases and conditions. The Company's most popular
product is its Xin Ao Xing Oleanolic Acid Capsule, an over-the-counter ("OTC")
medicine for Chronic hepatitis B, a disease affecting approximately 10% of the
Chinese population. In addition to its hepatitis product, BioStar manufactures
two broad-based OTC products, two prescription-based pharmaceuticals and ten
nutrients. The Company has adopted international standards and is in the
process of applying for three patents.
Safe Harbor
Certain statements in this release concerning our future growth prospects
are forward-looking statements, within the meaning of Section 27A of the U.S.
Securities Act of 1933, as amended, and Section 21E of the U.S. Securities
Exchange Act of 1934, as amended, which involve a number of risks and
uncertainties that could cause actual results to differ materially from those
in such forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and uncertainties
regarding the success of our investments, risks and uncertainties regarding
fluctuations in earnings, our ability to sustain our previous levels of
profitability including on account of our ability to manage growth, intense
competition, wage increases in China, our ability to attract and retain highly
skilled professionals, time and cost overruns on fixed-price, fixed-time frame
contracts, client concentration, our ability to successfully complete and
integrate potential acquisitions, withdrawal of governmental fiscal
incentives,
political instability and regional conflicts and legal restrictions on raising
capital or acquiring companies outside China. Additional risks that could
affect our future operating results are more fully described in our United
States Securities and Exchange Commission filings including our S-1 dated June
27, 2008, our Quarterly Report on Form 10-Q for the quarter ended September
30,
2008, our 10-K for the year ended December 31, 2008, and other recent filings.
These filings are available at www.sec.gov. We may, from time to time, make
additional written and oral forward-looking statements, including statements
contained in our filings with the Securities and Exchange Commission and our
reports to shareholders. We do not undertake to update any forward-looking
statements that may be made from time to time by or on our behalf.
For More Information on Biostar Pharmaceuticals,

Visit the websites at:
http://www.biostarpharmaceuticals.com
http://www.aoxing-group.com
http://www.zggbyy.com

Email requests to:
info@biostarpharmaceuticals.com
office@aoxing-group.com

Call:
+1-866-374-1957 (US)
+86-029-3368-6638 (China)

SOURCE Biostar Pharmaceuticals, Inc.

Michael Segal, Director of Biostar Pharmaceuticals, Inc., +1-866-374-1957 for
US, or +86-029-3368-6638 for China, info@biostarpharmaceuticals.com, or
office@aoxing-group.com