Biostar Pharmaceuticals, Inc. Begins Construction of Raw Material Processing Facility...

Biostar Pharmaceuticals, Inc. Begins Construction of Raw Material Processing
Facility of the Herbal Plantation Base

XIANYANG, China, June 29 /PRNewswire-Asia-FirstCall/ -- Biostar
Pharmaceuticals, Inc. (OTC Bulletin Board: BSPM) ("Biostar" or "the Company"),
a Xianyang based developer, manufacturer and supplier of pharmaceutical
products and medical nutrients addressing a variety of diseases and
conditions, today announced it began construction of its raw material
processing facility.
Biostar has finished the engineering design and commenced construction for
its new raw material processing facility which is expected to be completed in
the fourth quarter of 2009.
The raw material processing facility is part of the Company's herbal
plantation base. In the herbal plantation base, twelve most widely used
medicinal Chinese herbs including Ginkgo, Prickly Ash, Red Sage Root,
Schisandra Chinensis, Eucommia were planted, occupying 330,000 square meters.
With a favorable climate benefiting the herb yield, the Company expects an
initial harvest in September 2009. Approximately 15% of the harvested herbs
will be used as raw material reserves for the Company's own production which
is expected to lower its production costs while reducing its dependence on
third-party suppliers. The remaining 85% will be sold to other pharmaceutical
companies, wholesalers and retailers which generates additional revenue for
the Company.
"The building of our herbal plantation base represents a key component of
our strategic plan and will diversify and increase our revenue. The raw
material processing facility enables us to closely control our product quality
and ensure we have sufficient supply of key raw materials to meet our growth
objectives," said Mr. Wang Ronghua, Chairman and CEO of Biostar
Pharmaceuticals, Inc. "We are on track to complete the raw material
processing facility in the fourth quarter of 2009. We expect this project to
further increase our gross margin and provide incremental revenue for year
2009 and beyond."
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 March 31, 2009, 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 further information, contact:

Ms. Elaine Zhao, CFO
Tel: +1-626-456-2789
Email: elaine@biostarpharmaceuticals.com

John Mattio
HC International, Inc.
Tel: US +1-914-669-5340
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net

SOURCE Biostar Pharmaceuticals, Inc.

Ms. Elaine Zhao, CFO, Biostar Pharmaceuticals, Inc., +1-626-456-2789, or
elaine@biostarpharmaceuticals.com; or John Mattio, HC International, Inc., US
+1-914-669-5340, or john.mattio@hcinternational.net, for Biostar
Pharmaceuticals, Inc.