SOURCE: Benda Pharmaceutical, Inc.

May 30, 2007 12:53 ET

Benda Provides 2007 Financial Guidance and Operational Outlook

2007 Revenue Guidance: $40.7 Million; 2007 Net Income Guidance: $7.3 Million

HUBEI PROVINCE, CHINA--(Marketwire - May 30, 2007) - Benda Pharmaceutical, Inc. ("Benda" or the "Company") (OTCBB: BPMA), a China-based pharmaceutical company producing conventional and Traditional Chinese Medicines, as well as Genedicine®, the world's first commercialized gene therapy medicine for the treatment of cancer, announced today revenue and net income guidance along with an operational outlook for the full year ended December 31, 2007.

The recent acquisition of SiBiono Genetech Corporation ushers in a new era for Benda Pharmaceutical and gives Benda the opportunity to provide a detailed operational outlook for the remainder of the year.

2007 Financial Guidance

Benda anticipates 2007 revenue of approximately $40.7 million, compared to $15.9 million in 2006 -- a 156% increase. The Company anticipates 2007 net income of approximately $7.3 million, compared to approximately $2.3 million in 2006 -- a 217% increase.

2007 Operational Outlook

The Company operates and is majority owner of the following five plants (included in parentheses is the respective ownership stake, net of minority interests):

--  Benda Ebei (95.0%), which produces conventional medicines and
    Traditional Chinese Medicines;
--  Jiangling Benda (95.0%), which produces active pharmaceutical
    ingredients used in capsules, tablets and fluids;
--  Yidu Benda (95.0%), which produces bulk chemicals;
--  Beijing Shusai (75.0%), which produces Pharyngitis Killer Therapy; and
--  SiBiono (57.6%), which produces Genedicine®, a gene-based anti-
    cancer treatment.
    

The following is an analysis of 2007 projected revenue and net income by plant:

                                            2007 Projected  2007 Projected
                                                Revenue       Net Income
Plant                                        ($ Millions)    ($ Millions)
                                            --------------- --------------
Benda Ebei                                  $          11.5 $          2.8
                                            --------------- --------------
Jiangling Benda                             $          10.7 $          1.9
                                            --------------- --------------
Yidu Benda                                  $           3.3 $          0.8
                                            --------------- --------------
Beijing Shusai                              $           3.2 $          0.8
                                            --------------- --------------
SiBiono                                     $          12.0 $          2.0
                                            --------------- --------------
Total for reportable segments               $          40.7 $          8.4
                                            --------------- --------------
Other corporate expenses                                n/a $         (1.1)
                                            --------------- --------------
Total                                       $          40.7 $          7.3
                                            --------------- --------------
Benda Ebei

Benda Ebei reported revenue of approximately $2.3 million and net income of approximately $0.6 million for the quarter ended March 31, 2007. The Company anticipates that Benda Ebei will generate approximately $11.5 million in revenue and approximately $2.8 million in net income for the full year 2007. As a result of China's State Food and Drug Administration (SFDA) internal restructuring, the SFDA has put the approval of all new drugs on hold, delaying the approval of Benda's Yanlong Anti-Cancer Oral Liquid and Qiweiben Capsules. In order to compensate for this delay, Benda is placing greater emphasis on 13 new natural products that do not require SFDA approval, including the following:

--  Rose refined oil and propolis, which both boost the immune system;
--  Grape seed, which is rich in antioxidant properties; and
--  Garlic refined oil, which helps lower cholesterol.
    
Benda Ebei's increase in the number of production shifts per day from one to two, coupled with the installation of additional equipment by the end of May, will increase production capacity by approximately 70% over the final two quarters of 2007. Sales for the new product line are anticipated to begin June 2007.

Jiangling Benda

Jiangling Benda did not record revenue for the quarter ended March 31, 2007 because the plant was closed for upgrades in order to earn a Good Manufacturing Practices (GMP) certification. Jiangling Benda is expected to reopen July 2007, and the Company anticipates that Jiangling Benda will generate approximately $10.7 million in revenue and $1.9 million in net income for the full year 2007. Jiangling Benda has hired additional highly experienced technicians to accelerate the equipment installation and GMP certification process to ensure that the target reopening in July is met. Jiangling Benda's 2007 revenue will primarily be generated from the sales of two key products:

--  Ribose (approximately $3.4 million) -- a core chemical previously
    produced at sister subsidiary Yidu Benda; and
--  Ribavirin (approximately $5.7 million) -- an active pharmaceutical
    ingredient used to produce anti-virus medicines.
    
Yidu Benda

Yidu Benda reported revenue of approximately $0.7 million and net income of approximately $0.2 million for the quarter ended March 31, 2007. The Company anticipates that Yidu Benda will generate approximately $3.3 million in revenue and approximately $0.8 million in net income for the full year 2007. Yidu Benda was closed temporarily beginning January 2007 in order to upgrade wastewater treatment systems to meet government requirements. The Yidu Benda plant is scheduled to reopen in July 2007. Upon reopening, Yidu Benda will add a non-medicinal product, KTF powder, a basic chemical element used in refrigerators, to its product line which will account for over half of the plant's total revenue. All of the products produced at Yidu Benda meet government environmental standards for production processes.

Beijing Shusai

Beijing Shusai reported revenue of approximately $0.01 million and a net loss of $0.3 million for the quarter ended March 31, 2007. The Company anticipates that Beijing Shusai will generate approximately $3.2 million in revenue and approximately $0.8 million in net income for the full year 2007. Originally, the Company had anticipated rolling out Pharyngitis Killer Therapy through an SFDA alliance with hospitals. As a result of changing regulatory conditions and to optimize consumer exposure to the product, Beijing Shusai has had to change its strategy and is now relying on its relationship with the State Administration of Traditional Chinese Medicines (SATCM) to gain entrance into the larger hospitals. Beijing Shusai sets up clinics in larger hospitals in which a doctor or nurse is trained to administer Pharyngitis Killer Therapy. This setup gives Beijing Shusai greater access to patients, and in exchange, the contracts stipulate profit sharing between Beijing Shusai and the hospitals in which the clinics are based. Currently, there are 11 clinics in operation. The Company is targeting the opening of two new clinics in each of twenty provinces, for a total of 40 new clinics by year-end.

SiBiono

Benda did not record revenue from SiBiono in the quarter ended March 31, 2007 since the effective date of the SiBiono acquisition was in the second quarter of 2007. The Company anticipates that SiBiono will generate approximately $12.0 million in revenue and approximately $2.0 million in net income for the full year 2007. The Company has 24-signed agreements with various agencies in over 18 provinces in order to fully utilize their distribution channels nationwide. In addition, the Company benefits from having the SiBiono sales team already in place prior to the acquisition. Sales of Genedicine®, a gene-based anti-cancer treatment, have already launched and continue to increase as new consumers are added and existing consumers continue to buy the product to fulfill their existing treatment programs.

About Benda Pharmaceutical, Inc.

Benda Pharmaceutical, Inc. (www.BendaPharma.com), a China-based pharmaceutical company, is a pure play on explosive Chinese pharmaceutical spending and the global search for a cancer cure. Benda produces conventional and Traditional Chinese Medicines, as well as Genedicine®, the world's first commercialized gene therapy medicine for the treatment of cancer.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

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