Sinobiomed Inc.
OTC Bulletin Board : SOBM

Sinobiomed Inc.

October 17, 2007 09:00 ET

Update on Sinobiomed's Acquisition of Chinese Pharmaceutical Distributor

Sinobiomed Books Acqusition's Revenue for Six Months Ended June 30, 2007 of US$11.3 Million

SHANGHAI, CHINA--(Marketwire - Oct. 17, 2007) - Sinobiomed Inc. ("Sinobiomed", or "the Company") (OTCBB:SOBM) is pleased to update on the acquisition, by its 82% owned subsidiary, Shanghai Wanxing Bio-pharmaceuticals Co., Ltd. ("Shanghai Wanxing"), of Suzhou Boai Medical Development Co., Ltd. ("Suzhou Boai").

On August 26, 2007, the equity owners of Suzhou Boai holding 90% of the equity of Suzhou Boai formally transferred their equity ownership of Suzhou Boai to Shanghai Wanxing. As of August 26, 2007, Shanghai Wanxing is registered as the 90% equity owner of Suzhou Boai. All the equity owners of Suzhou Boai have transferred all of their equity to Shanghai Wanxing, except for one equity owner who will retain a 10% interest, for a transfer price of approximately US$2.4 million. The transfer follows Sinobiomed's signing, on August 6, 2007, of a formal Equity Transfer Contract with the equity owners of Suzhou Boai to acquire a 90% interest in Suzhou Boai, a pharmaceutical distribution firm.

With the completion of the transfer, Sinobiomed booked Suzhou Boai's unaudited revenue to June 30, 2007, which was US$11,300,810. Suzhou Boai's revenue to December 31, 2006 was US$18,298,863, according to the US GAAP audit filed on October 16, 2007.

The transfer gives Shanghai Wanxing control of Suzhou Boai, which is GSP certified by the Chinese State Food and Drug Administration (SFDA). GSP stands for Good Supply Practice, and certification safeguards the safety and quality of pharmaceutical products in business transactions. The pharmaceutical distribution company, located in Suzhou, about 100 km east of Shanghai, has two wholly owned subsidiaries; one sells vaccines, the other medical devices. Suzhou Boai is engaged in the wholesale supply of biological products, chemical medicines and Chinese traditional medicine in southern and east central China.

The acquisition of Suzhou Boai is the first step of Sinobiomed's expansion strategy. The Company intends to acquire another distributor in northern China, as well as target pharmaceutical companies with manufacturing capability and existing product lines for acquisition. Sinobiomed's near-term objective is to develop a large-scale, highly profitable integrated pharmaceutical enterprise that develops, manufactures and distributes a broad range of market-driven products that leverage its innovative biotechnology patents and processes.

"The acquisition of Suzhou Boai's well developed product distribution network - in combination with Shanghai Wanxing's existing products, robust product pipe line and GMP certification - is expected to accelerate and expand sales and revenue," according to Shanghai Wanxing President and CEO, Banjun Yang. "We intend to build on Suzhou Boai's current customer base as well as widen our market penetration in China."


Sinobiomed Inc. is a leading Chinese developer of genetically engineered recombinant protein drugs and vaccines. Based in Shanghai, Sinobiomed currently has 10 products approved or in development: three on the market, four in clinical trials and three in research and development. The Company's products respond to a wide range of diseases and conditions, including malaria, hepatitis, surgical bleeding, cancer, rheumatoid arthritis, diabetic ulcers and burns, and blood cell regeneration.

FORWARD LOOKING STATEMENTS This news release may include "forward-looking statements" regarding Sinobiomed Inc., and its subsidiaries, business and project plans. Such forward looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Sinobiomed Inc. expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Sinobiomed Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

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