SOURCE: First China Pharmaceutical Group, Inc.

First China Pharmaceutical Group, Inc.

December 02, 2010 09:15 ET

First China Pharma Continues to Grow Market Share -- Company Signs Agreements With 2 Additional Hospitals

HONG KONG--(Marketwire - December 2, 2010) - First China Pharmaceutical Group, Inc. (OTCBB: FCPG) ("First China" or the "Company"), a rapidly growing pharmaceutical distribution company headquartered in Yunnan, China, wishes to announce the recent signing of agreements to distribute its full inventory of over 5,000 medicinal and pharmaceutical product lines to two district hospitals in Yunnan Province, resulting in a total of ten new hospital agreements in less than 60 days, a significant increase in market share for the Company.

First China's Management welcomes the Kunming Maternal & Child Health Care Hospital and Kunming General Hospital of Chengdu Military Command to the Company's rapidly growing list of institutional customers.

First China Pharmaceutical Group plans to continue its strategic growth of the company as demonstrated by announcements on November 3rd outlining the Company's intent to acquire the interests of De Xin Pharmacy of Kunming City as a potential flagship retail outlet, and the November 30th news announcing intent to acquire the interests of Shandong Run Kang Pharmaceutical Co. Inc. of Jinan City in Shandong Province, a well-positioned and undervalued regional distribution company offering excellent development upside potential.

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. The Company intends for its business model to leverage the efficiencies of internet ordering and fulfillment and 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 60% to 70% of their product needs directly from the Company.

The agreements are partially driven by a 2009 directive by the Ministry of Health that public hospitals should gradually phase out existing "cost plus" pricing system within 3 years. The government also advised that medical institutions should centralize their procurement and distribution of drug and pharmacare products. The new methodology is gaining increased popularity as many leading hospitals and clinics shift to this new system of procurement.

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 believed to be one of a limited number of pharmaceutical distribution companies in Yunnan Province that has obtained government approval to fulfill 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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