Gross Margin Continues to Improve

NEW YORK, Dec. 14 /Xinhua-PRNewswire/ -- Hubei Pharmaceutical Group (BULLETIN BOARD: HBEI) today reported results for the third quarter ended October 31, 2004. Net operating profits from operations for the three months ended October 31, 2004 were reported at $635,981 with sales revenues reaching $2,044,185. Gross profit margins increased to 53.2% for the third quarter, an increase of 3.8% from the previous quarter.

''We have recorded another solid quarter only five months after our first acquisition in China's fast growing life sciences and pharmaceutical industry,'' said Hubei Pharmaceutical Group President Reid Li. ''Our operational management has successfully implemented plans to improve both gross revenue and profitability by concentrating production capacity on products that generate higher profit margins and that are in demand in our recently expanded distribution channel. Furthermore, we continue to explore various acquisition and joint venture opportunities to accelerate the growth of our company.''

About Hubei Pharmaceutical Group

Hubei Pharmaceutical Group is engaged in the acquisition and vertical integration of operating subsidiaries or controlling joint venture interests in China, in all facets of pharmaceutical life sciences, especially the development, production and distribution of pharmaceuticals. Hubei has made an application to change its corporate identity to Amersin Life Sciences Corporation, a name that more closely reflects the current business and aggressive growth strategy of the Company. Shareholders can access further information at the Company's website, http://www.hbpharmagroup.com/ .

Legal Notice

This press release contains forward-looking statements that involve risks and uncertainties concerning our expected performance (as described without limitation in the quotations from current management in this release). Actual results may differ materially from the results predicted and reported results should not be considered as an indication of our future performance. We believe that these potential risks and uncertainties include, without limitation: risks associated with doing business in China, including dependence on agreements with Chinese governmental instrumentalities, potential control by the Chinese central government, availability of power and raw materials, and potential restrictions on foreign investment; our need for additional capital; dependence on the value of foreign currency; our ability to integrate newly acquired assets and product lines; and the number and size of our competitors. Statements in this release should be evaluated in light of these important factors. All information set forth in this release is as of December 1, 2004, and we undertake no duty to update this information. More information about these and other important factors that could affect our business and financial results is included in our Annual Report on Form 10-KSB for the fiscal year ended January 31, 2004, which is on file with the Securities and Exchange Commission. Additional information may also be set forth in our quarterly reports on Form 10-QSB filed with the Securities and Exchange Commission, including under the section, ''Management's Discussion and Analysis of Financial Condition and Results of Operations.''

HUBEI PHARMACEUTICAL GROUP, LTD. Consolidated Statements of Income (Expressed in US Dollars) Cumulative From Inception Date of December 18, 1998 Quarter Ended Nine Months Ended To October October 31, October 31, 31, 2004 2004 2003 2004 2003 Revenue $4,000,672 $2,062,863 $ -- $4,000,672 $ -- Cost of Goods Sold (2,040,950) (1,016,664) -- (2,040,950) -- Gross Profit 1,959,722 1,046,199 -- 1,959,722 -- General and Administration Costs 1,818,075 410,298 165,834 762,384 274,954 Net profit (loss) from operations 141,647 635,901 (165,834) 1,197,338 (274,954) Abandonment of mineral property (3,500) -- -- -- -- Minority interest (529,164) (305,556) -- (529,164) -- Loss on disposal of HBJV (423,777) -- -- (423,777) -- Loss on terminated acquisition (1,059,415) -- -- -- -- Net profit (loss)for the period $(1,874,209) $330,345 $(165,834) 244,397 $(274,954) Basic earnings (loss) per common share $0.01 $(0.01) $0.01 $(0.01) Diluted earnings (loss) per common share $0.01 $(0.01) $0.01 $(0.01) Weighted average number of shares outstanding -- Basic 31,447,692 27,117,961 31,447,692 27,117,964 -- Diluted 5,095,369 29,491,294 35,095,369 29,494,294 HUBEI PHARMACEUTICAL GROUP, LTD. Consolidated Balance Sheets (Expressed in US Dollars) October 31, January 31, 2004 2004 Assets (Unaudited) (Audited) Current Assets Cash and cash equivalents (Note 3) $ 412,253 $ 243,804 Accounts receivable 374,805 -- Proceeds receivable from disposal of Joint Venture (Note 4) 118,000 -- Prepaid expenses 931,596 352,278 Inventory (Note 4 & Note 5) 648,887 678,785 Travel advance 4,766 -- Total current assets 2,490,307 1,274,867 Cash restricted as to use by court order 82,056 82,056 Property, plant and equipment, at cost (Note 3 & Note 4) 5,245,191 2,975,487 Less: accumulated depreciation (393,517) (1,333) Net property, plant and equipment 4,851,674 2,974,154 Deferred charges -- 78,492 Construction in progress 217,775 -- Goodwill and other Intangible assets (Note 8) 2,912,951 -- Total Assets $ 10,554,763 $ 4,409,569 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 905,126 $ 303,202 Loans from related parties (Note 6) 757,028 -- Liabilities for acquisition (Note 1) 1,205,000 -- Short term bank loans (Note 7) 1,573,000 -- Total current liabilities 4,440,154 303,202 Long term debt (Note 6) 847,000 -- Minority interest in Joint Venture Corporation (Note 14) 1,902,210 3,622,500 Stockholders' Equity Capital stock 32,036,885 common shares (January 31, 2004 - 30,744,507) -- Par value 32,037 30,745 Additional paid in capital 3,167,571 2,538,276 Advances on proposed subscriptions -- 22,000 Share capital to be issued (Note 1) 2,040,000 -- Contributed surplus -- 12,075 Retained earnings (deficit) during development stage (Note 2) (1,874,209) (2,118,606) Cumulative currency translation adjustments -- (623) Total stockholders' equity 3,365,399 483,867 Total Liabilities and Stockholders' Equity $ 10,554,763 $ 4,409,569 For more information, please contact: Howard Milne, Corporate Communications, Hubei Pharmaceutical Group Ltd. Tel: +1-604-881-2899 x220 Fax: +1-604-881-2892 Email: howard@hbpharmaGroup.com

Website: http://www.hbpharmagroup.com

CONTACT: Howard Milne of Hubei Pharmaceutical Group Ltd.+1-604-881-2899 x220, or fax +1-604-881-2892, or howard@hbpharmaGroup.com