Sinobiomed Inc.
OTC Bulletin Board : SOBM

Sinobiomed Inc.

October 02, 2007 09:00 ET

Sinobiomed Subsidiary Named "High and New Technology Enterprise"

Designation Gives Firm 2 Years Tax Exemption Followed by 3 Years of 50% Tax Reduction

SHANGHAI, CHINA--(Marketwire - Oct. 2, 2007) - Sinobiomed Inc. ("Sinobiomed", or "the Company") (OTCBB:SOBM) is pleased to announce that its 82% owned subsidiary, Shanghai Wanxing Bio-pharmaceuticals Co., Ltd. ("Shanghai Wanxing"), has been designated as a "High and New Technology Enterprise" by the Science and Technology Commission of the Municipality of Shanghai in accordance with standards set by the Chinese Ministry of Science and Technology.

The Chinese government's preferential policies grant joint venture companies such as Shanghai Wanxing that receive the designation a number of significant benefits, including:

- An enterprise tax exemption in its first two years of profitability;

- A tax reduction of 50% (from 15% to 7.5% in its third to fifth years of profitability);

- Exemptions on import duties and value added tax for equipment imported for research and production; and

- Exemptions on export duties

"The "High and New Technology Enterprise" designation strengthens Shanghai Wanxing's ability to accelerate product development and build corporate capacity in ways that increase shareholder value," said Sinobiomed President and CEO Banjun Yang. "We are thankful that the Municipality of Shanghai and Ministry of Science and Technology have extended this signal honor to our firm. We fully intend to leverage the substantial tax and duty exemptions to grow the Company."

Shanghai Wanxing qualified for the designation because it meet the "Conditions and Measures on the Designation of High and New Technology Enterprises in National High and New Technology Industry Development Zones" set forth by the Ministry of Science and Technology of China. These include:

- Being a knowledge-intensive and technology-intensive economic enterprise with modern, scientific management system;

- Being engaged in the research, development and production of a variety of high technologies and products;

- Being the holder of several patents and producing products that lead the domestic market and/or meet advanced global standards;

- Annually investing significant funding into research on high and new technologies and products


Sinobiomed Inc. is a leading Chinese developer of genetically engineered recombinant protein drugs and vaccines. Based in Shanghai, Sinobiomed currently has 10 products approved or in development: three on the market, four in clinical trials and three in research and development. The Company's products respond to a wide range of diseases and conditions, including: malaria, hepatitis, surgical bleeding, cancer, rheumatoid arthritis, diabetic ulcers and burns, and blood cell regeneration.

PHONE: 86-58993708 / FAX: 86-58993709

FORWARD LOOKING STATEMENTS This news release may include "forward-looking statements" regarding Sinobiomed, and its subsidiaries, business and project plans. Such forward looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Sinobiomed expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Sinobiomed does not undertake any obligation to update any forward looking statement, except as required under applicable law.

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