SOURCE: Premiere Publishing Group, Inc.

December 02, 2010 08:00 ET

Premiere Publishing Group, Inc. Further Clarifies Letter of Intent and Business Strategy

TOTOWA, NJ--(Marketwire - December 2, 2010) -  The management at Premiere Publishing Group, Inc. (OTCBB: PPBL) would like to clarify for its shareholders that the recent Letter of Intent it had signed with a pharmaceutical distribution company out of Mainland China was not signed with Xi'an Janssen Pharmaceutical Ltd. which is a Johnson and Johnson joint venture started in 1985.

Premiere Publishing Group, Inc., as we stated clearly in our earlier press release, signed a Letter of Intent with Xi'an Johnson Pharmaceutical Ltd. a company which is also based out of Xi'an, the capital city of the Shaanxi province of the People's Republic of China. The company is in the business of distributing both OTC drugs and herbal medicines on both a wholesale and retail basis throughout the province.

Xi'an Johnson Pharmaceutical Ltd. is expected to generate $4 million in profits for 2010 or close to $20 million in revenue. We are currently completing our due diligence after a one week visit with the company in October and awaiting the audited financials for 2010 which are now being prepared. Due to the stringent filing requirements that fully reporting companies such as Premiere Publishing and Xi'an Johnson Pharmaceutical Ltd. would have, it requires nothing less than an SEC qualified audit for the reporting period of 2010 through the month of November.

The venue calls for the merging of Xi'an Johnson Pharmaceutical Ltd. with one of our wholly owned subsidiaries, close the financing it has requested, which could be used partially for the potential acquisition of another pharmacy distribution company. Which in turn will help Xi'an Johnson Pharmaceutical continue its quest to become one of the larger publicly traded Chinese pharmaceutical companies in China. Their strategy is similar to another publicly traded pharmaceutical company known as China Jo Jo Drug Stores which is based in the Zheziang Province of China listed under the symbol NASDAQ CJJD.

Subsequent to the merger and financing the company would be registered as a "stand alone" fully reporting public company. We would then distribute shares of Xi'an Johnson Pharmaceutical Ltd. to our shareholder base on a pari passu basis.

We expect to work along these lines with several other highly profitable companies in the future and again look forward to keeping our shareholders informed of our progress going forward.

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