SOURCE: First China Pharmaceutical Group, Inc.

First China Pharmaceutical Group, Inc.

January 04, 2011 09:00 ET

First China Pharma Increases National Expansion Aims With 2 New Hospital Agreements in Autonomous Regions of China

HONG KONG--(Marketwire - January 4, 2011) - 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 signing of two new distribution agreements bringing the current number of hospital contracts to 17 in just over 60 days of concerted sales efforts.

With the signing of these agreements, First China continues to maintain its pace of steady growth and ongoing success towards its national expansion aims. Management is pleased to welcome the Tumor Hospital of Baotou located in Baotou City (pop. 2,400,000), Inner Mongolian Autonomous Region and the Urumchi General Hospital of Lanzhou Military Command located in Urumchi City (pop. 2,700,000), Xinjiang Uygur Autonomous Region to its growing distribution network.

Recent news regarding announcements from the Chinese Central Government declaring new policies to encourage private funds, including overseas capital, to be channeled into the medical sector to meet the countries increasingly diversified demands on health care have generated great interest and optimism in the healthcare sector. First China believes that its recent market share expansion beyond its current list of over 4,700 pharmacies, hospitals and clinics is indicative of the confidence these new measures are producing.

Consequently, the Company is redoubling its initiatives to rapidly deploy its proprietary software-based internet fulfillment system and to update its timeline to speed inventory targets aimed at increasing the current inventory of 5,000 products to approximately 30,000 items.

First China is buoyed by its successful and rapid penetration into the growing drug distribution marketplace in China and is committed to the further development of territorial expansion, joint partnerships and key acquisition strategies to drive the Company towards achieving its stated goals in the months ahead.

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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