SOURCE: First China Pharmaceutical Group, Inc.

First China Pharmaceutical Group, Inc.

September 27, 2010 09:00 ET

First China Pharma Acquires Chinese Healthcare Products Distributor

Specialized Service Provider Holds Only Online Fulfillment License in Region

HONG KONG--(Marketwire - September 27, 2010) -  First China Pharmaceutical Group, Inc. (OTCBB: FCPG) ("First China" or the "Company") is pleased to announce that as of September 15, 2010, First China Pharmaceutical Group, Inc., a Nevada corporation, closed a voluntary share exchange transaction with First China Pharmaceutical Group Limited, a company organized under the laws of Hong Kong ("FCPG.HK").

The Share Exchange Agreement is between the Company, on the one hand, and FCPG HK, Kun Ming Xin Yuan Tang Pharmacies Co., Ltd., a company organized under the laws of the People's Republic of China and wholly owned subsidiary of FCPG HK ("XYT") and Zhen Jiang Wang, the sole shareholder of FCPG HK, on the other hand.

Following the Exchange Transaction close, FCPG HK and XYT have become the Company's wholly owned subsidiaries, and the Company has acquired the business and operations of FCPG HK and XYT which includes a strategic advantage over its competitors as it is the only pharmaceutical distribution company in Yunnan Province that has obtained government approval to fill orders over the internet.

First China Pharmaceutical Group plans to continue the growth of the company from its current position as a provider of approximately 5,000 drugs to more than 4,700 pharmacies, hospitals and clinics in China's Yunnan Province (pop. 45,710,000). The Company anticipates its business model will change to leverage the efficiencies of internet ordering and fulfillment and intends to rapidly expand its capacity to approximately 30,000 products. It is estimated that a broader product line will ensure customers will be able to order 80% to 90% of their product needs directly from the Company.

Upon the closing of the Exchange Transaction, Mr. Zhen Jiang Wang, as recent Executive Director of XYT, was appointed as Chairman of the Company's Board of Directors and Chief Executive Officer. In addition, Ms. Jing Gong has been appointed as President, Ms. Yi Jia Li as Chief Financial Officer, Treasurer, and Secretary, and Mr. Yong Kang Chen as Senior Vice President, Quality Control. Mr. Aidan Hwuang has resigned as President, Chief Financial Officer, and Secretary of the Company, but will continue to serve on the Company's Board of Directors. Mr. Gregory D. Tse has been appointed to the Board and Mr. Roderick Macutay has resigned as a Director of the Company. 

The Definitive Agreement contains customary representation and warranties, covenants and indemnification provisions and conditions. Details of the company's business, finances, appointments and agreements can be found as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database.

About First China Pharmaceutical Group, Inc. (OTCBB: FCPG)
First China Pharmaceutical Group, Inc. aims to develop a high growth pharmaceutical distribution company generating significant revenue from the sale of healthcare products in China. As part of its business strategy, the Company has acquired the assets of Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT), which includes a strategic advantage over its competitors as it is the only pharmaceutical distribution company in Yunnan Province that has obtained government approval to fill orders over the internet. First China Pharmaceutical Group plans to continue the rapid growth of the company from its current position as a provider of approximately 5,000 drugs to more than 4,700 pharmacies, hospitals and clinics in China's Yunnan Province. For more information visit: www.firstchinapharma.com

Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, regulatory incentives, the development of new business opportunities, and projected costs, revenue, profits and results operations. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

ON BEHALF OF THE BOARD
First China Pharmaceutical Group, Inc.
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Zhen Jiang Wang
Chairman and CEO

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