Tibet Pharmaceuticals, Inc. (TBET)

[surf1944]

Tibet Pharmaceuticals Signs Letter of Intent to Cooperate With Anhui Taihe Pharmaceutical Group

Strategic Cooperation Anticipated to Extend Tibet Pharmaceuticals' Distribution Network in China
MarketwirePress Release: Tibet Pharmaceuticals, Inc. – Tue, Jan 31, 2012 4:05 PM EST

SHANGRI-LA COUNTY, CHINA--(Marketwire -01/31/12)- Tibet Pharmaceuticals, Inc. (NASDAQ: TBET - News), an emerging specialty pharmaceutical company engaged in the development, manufacturing and marketing of traditional Tibetan medicine in China, today announced that it has signed a Letter of Intent ("LOI") to cooperate with Anhui Taihe Pharmaceutical Group Co., Ltd. ("Anhui Taihe Pharmaceutical Group"), a wholesale pharmaceutical distribution company based in Anhui province with a network across 16 provinces and municipalities in China.

"The management team at Tibet Pharmaceuticals is extremely pleased to announce the signing of our LOI with Anhui Taihe Pharmaceutical Group," said Hong Yu, CEO and Chairman of Tibet Pharmaceuticals. "We expect the proposed strategic cooperation agreement to increase our line of Tibetan pharmaceutical products' reach and contribute to our expansion in China."

Established in 1995, Anhui Taihe Pharmaceutical Group distributes over 3,000 pharmaceutical products, including a wide variety of prescription and over-the-counter medicines. Anhui Taihe Pharmaceutical Group is fully GMP certified in China. Its wholesale distribution network covers 16 of China's 23 provinces, all 4 municipalities and numerous autonomous regions, with its main hub of operations centrally located in China's Anhui province. Tibet Pharmaceuticals believes that Anhui Taihe Pharmaceutical Groups' annual revenues are approximately $200 million USD.

Mr. Yu concluded, "We believe that relationships such as our cooperation with Anhui Taihe Pharmaceutical Group will provide additional avenues to sell our products and access new customers throughout China's growing pharmaceutical industry."

Tibet Pharmaceuticals expects to continue to grow in China's fragmented pharmaceutical and traditional Tibetan medicine industries. The company is committed to establishing itself as a leading manufacturer and distributor of Tibetan medicine in China and believes that additional distribution channels will help enhance its completive advantages in the industry.