Tibet Pharmaceuticals Signs Letter of Intent to Cooperate With Anhui Taihe Pharmaceutical Group

SHANGRI-LA COUNTY, CHINA--(Marketwire - January 31, 2012) - Tibet Pharmaceuticals, Inc. (NASDAQ: TBET), an emerging specialty pharmaceutical company engaged in the development, manufacturing and marketing of traditional Tibetan medicine in China, today announced that it has signed a Letter of Intent ("LOI") to cooperate with Anhui Taihe Pharmaceutical Group Co., Ltd. ("Anhui Taihe Pharmaceutical Group"), a wholesale pharmaceutical distribution company based in Anhui province with a network across 16 provinces and municipalities in China.

"The management team at Tibet Pharmaceuticals is extremely pleased to announce the signing of our LOI with Anhui Taihe Pharmaceutical Group," said Hong Yu, CEO and Chairman of Tibet Pharmaceuticals. "We expect the proposed strategic cooperation agreement to increase our line of Tibetan pharmaceutical products' reach and contribute to our expansion in China."

Established in 1995, Anhui Taihe Pharmaceutical Group distributes over 3,000 pharmaceutical products, including a wide variety of prescription and over-the-counter medicines. Anhui Taihe Pharmaceutical Group is fully GMP certified in China. Its wholesale distribution network covers 16 of China's 23 provinces, all 4 municipalities and numerous autonomous regions, with its main hub of operations centrally located in China's Anhui province. Tibet Pharmaceuticals believes that Anhui Taihe Pharmaceutical Groups' annual revenues are approximately $200 million USD.

Mr. Yu concluded, "We believe that relationships such as our cooperation with Anhui Taihe Pharmaceutical Group will provide additional avenues to sell our products and access new customers throughout China's growing pharmaceutical industry."

Tibet Pharmaceuticals expects to continue to grow in China's fragmented pharmaceutical and traditional Tibetan medicine industries. The company is committed to establishing itself as a leading manufacturer and distributor of Tibetan medicine in China and believes that additional distribution channels will help enhance its completive advantages in the industry.

About Tibet Pharmaceuticals, Inc.

Based in Shangri-La County, Yunnan Province, China, Tibet Pharmaceuticals, Inc. (NASDAQ: TBET) is an emerging specialty pharmaceutical company engaged in the research, development, manufacturing and marketing of modernized traditional Tibetan medicines in China. With 190 employees and nation-wide distributors, the company develops both prescription and over-the-counter traditional Tibetan medicines that promote health in human respiratory, digestive, urinary and reproductive systems. Tibet Pharmaceuticals' products are sold throughout China, with a majority of sales concentrated in the southern provinces, most notably Yunnan Province, where the company's 52,000 sq. ft. GMP-certified manufacturing facilities are located. The access to key raw materials, not generally available outside the province, provides a significant advantage for Tibet Pharmaceuticals.

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Forward-Looking Statements

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts.

Specifically, the following references are forward-looking statements:

• The anticipated execution of final strategic cooperation documents between Tibet Pharmaceuticals and Anhui Taihe Pharmaceutical Group;
• The anticipated impact that the strategic cooperation arrangement will have upon Tibet Pharmaceutical's product line;
• Tibet Pharmaceuticals' ability to identify companies suitable for acquisition and its ability to complete the acquisition thereof; and
• The anticipated growth in Tibet Pharmaceuticals' business and the financial results thereof.

These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, changes in company valuations and investor perceptions of companies, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.