SOURCE: Skystar Bio-Pharmaceutical Company

November 15, 2006 09:33 ET

Skystar Bio-Pharmaceutical Reports Record Revenue and Net Income in Third Quarter

XI'AN, CHINA -- (MARKET WIRE) -- November 15, 2006 -- Skystar Bio-Pharmaceutical (OTCBB: SKBI), a leading bio-pharmaceutical company in China, today reported financial results for the third quarter and nine months ended September 30, 2006.

Highlights:

--  Third quarter 2006 revenues were up 118% year-over-year to $3.56
    million.
--  Third quarter net income was $800,000, up 66% sequentially from the
    second quarter and 53% year-over-year.
--  EPS for the third quarter was up 50% year-over-year to $0.06 and 20%
    sequentially from the second quarter.
--  For the first nine months of 2006, revenues totaled $7.32 million, up
    62% compared to the same period last year.
--  EPS for the first nine months was up 17% to $0.14 compared to the same
    period last year.
    

Weibing Lu, Chairman and CEO of Skystar Bio-Pharmaceutical, commented, "This quarter was particularly significant for us as we started realizing some of the impact of the additional revenues generated through our new facilities. These facilities are still not 100% complete but we are anticipating being able to meet a very large portion of the overwhelming demand we have for our products once they are all in full operation. This will of course have a positive impact on our future revenues and earnings."

Company Reports Record Third Quarter Revenues

Revenues for the third quarter ended September 30, 2006 totaled $3.56 million, up 118% from $1.63 million in the third quarter of 2005. On a sequential basis, revenues were up 29% from $2.76 million in the second quarter of 2006.

For the first nine months of 2006, revenues totaled $7.32 million, up 62% from $4.53 million in the first nine months of 2005.

Company Achieves Record Net Income

Net income for the third quarter ended September 30, 2006 was a Company record $800,000, or $0.06 per diluted share, compared to $524,000, or $0.04 per diluted share, in the third quarter of 2005. On a sequential basis, net income was up 66% from $483,000 in the second quarter of 2006.

For the first nine months of 2006, net income totaled $1.44 million, or $0.14 per fully diluted share, up 17% from $0.12 per fully diluted share from the first nine months of 2005.

If you would like to be added to Skystar Bio-Pharmaceutical's investor email list please contact Zack Noory with Nexus Investor Relations at znoory@nexusir.com.

About Skystar Bio-Pharmaceutical

Skystar Bio-Pharmaceutical Company is a China based producer and distributor of vaccines, microorganisms and 100% organic herbal additives to cure and prevent disease in poultry, livestock, birds and pets. The company's product line consists of more than 70 state-of-the-art products with over 50 additional products in the developmental stage. One of the prominent products currently in the development stage is a feed additive and vaccine for Avian Influenza. Skystar has formed strategic sales distribution networks in 27 provinces and regions throughout China. Skystar recently received China's State Ministry of Agriculture's authorization for the construction of a new Bio-Pharmaceutical facility, which will conform to Good Manufacturing Practices (GMP) standards and will significantly increase the company's production capacity. Skystar anticipates that this increase will help the company meet the overwhelming demand for its products.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, uncertainties in product demand, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

Contact Information

  • AT SKYSTAR BIO-PHARMACEUTICAL:
    Scott Cramer
    Director - Investor Relations
    407-645-4433
    Email Contact

    AT NEXUS INVESTOR RELATIONS:
    Zack Noory
    Managing Partner
    310-606-2018
    Email Contact