SOURCE: Skystar Bio-Pharmaceutical Company

December 20, 2006 09:30 ET

Skystar Bio-Pharmaceutical Provides Fourth Quarter and Full Year 2006 Financial Guidance

Company Projects Fourth Quarter Revenue Increase Between 28% and 42%; Annual Revenue Expected to Increase by 54% to 57%.

XI'AN, CHINA -- (MARKET WIRE) -- December 20, 2006 -- Skystar Bio-Pharmaceutical (OTCBB: SKBI), a leading bio-pharmaceutical company in China, today reported revenue and earnings guidance for both fourth quarter and full year 2006, ending December 31.

Fourth Quarter Revenue to Increase by 28%-42% Year-Over-Year

For the fourth quarter of 2006, the Company projects revenue between $1.80 million and $2.00 million. This would be an increase of between 28% and 42% over the $1.41 million in sales reported for the fourth quarter of 2005. For the full year 2006, Skystar estimates revenue of $9.12 million to $9.32 million, an increase of 54% to 57% over the $5.94 million recorded for all of 2005.

With the completion of its new facilities, Skystar has started to drastically increase its production capacity to meet the overwhelming demand for its products. This increased demand, partially caused by many competitors being forced out of the industry due to the stringent new GMP Certification Standards passed by the PRC, coupled with the completion of its new GMP Certified facilities has allowed Skystar to be confident in projecting such robust growth in revenue.

Weibing Lu, Skystar Bio-Pharmaceutical's Chairman and CEO, said, "We are pleased to start the practice of providing financial guidance in an effort to provide as much transparency and pertinent financial information to investors as possible. The growth we have realized in the past three years and the record growth we are projecting for 2006 are attributable to our dedication to invest in and build technically advanced, GMP Certified facilities and the overwhelming demand for our products throughout China due to the increased standard of living."

Fourth Quarter and Full Year EPS Expected to Increase 300% and 69% Respectively

Net income for the fourth quarter ending December 31, 2006 is projected between $200,000 and $220,000, or approximately $0.02 per diluted share. Excluding a one-time expense for amortization of deferred consulting fees, projected net income for the fourth quarter 2006 would have been between $520,000 to $540,000, or $0.04 per fully diluted share, an increase of 300% from the $0.01 achieved in fourth quarter of 2005.

Full year 2006 net income is projected between $1.60 and $1.65 million, or $0.14 per fully diluted share. Excluding a one-time expense for amortization of deferred consulting fees, projected net income for full year 2006 would have been between $2.58 million to $2.63 million, or $0.22 per fully diluted share, an increase of 69% from the $0.13 achieved in 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 completed construction of new state-of-the-art Bio-Pharmaceutical facilities covering an area of almost eight acres. The new facilities meet or exceed all Good Manufacturing Practice (GMP) Certification Standards and have received GMP Certification from the Chinese government. For additional information, please visit www.skystarbio-pharmaceutical.com.

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

  • FOR FURTHER 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