China BCT Expands its Retail Pharmacy Footprint in Guangxi with the Opening of 21 New Stores

LIUZHOU CITY, Guangxi Province, China, July 20, 2011 /PRNewswire-Asia/ -- China BCT Pharmacy Group, Inc., (OTC BB: CNBI), (“China BCT” or the “Company”), a leading pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China, today announced that the Company is in the process of launching 21 new retail pharmacy stores in Guangxi, bringing the total number of “Baicaotang” branded stores to 208.

The new stores will offer a full range of pharmaceutical products and are located in areas of Liuzhou city, the administrative counties around Liuzhou, Yizhou City, Binyang County, and Luzhai County. Upfront capital investment to complete site renovation for the new stores, which have an average size of roughly 73 square meters, totaled approximately RMB 12.6 million ($1.9 million). Management estimates that the pay back period on this investment will be approximately 4 years and believes that the 21 new stores, as a group, will generate annual revenues of approximately RMB 18.9 million ($2.63 million). The Company expects all of the new locations, upon receipt of required government business licenses, to be fully operational by the end of the third quarter of 2011.

“We are pleased to announce the addition of 21 new stores to our strong regional retail pharmacy business,” commented Mr. Hui Tian Tang, Chairman and Chief Executive Officer of China BCT Pharmacy Group, Inc. “Our retail strategy continues to focus on Guangxi, with an emphasis on second and third tier cities with relatively low market penetration. By investing in the Baicaotang brand, providing excellent customer service and offering ample product selection, we aim to become the leading retail pharmacy in Guangxi. Our broader strategy is to vertically integrate our growing retail network with our wholesale distribution and manufacturing businesses to maximize China BCT’s overall profitability,” Mr. Tang added.

About China BCT

China BCT is engaged in pharmaceutical distribution, pharmacy retailing, and the manufacture of pharmaceuticals products through its subsidiaries Guangxi Liuzhou Baicaotang Medicine Limited, Guangxi Liuzhou Baicaotang Medicine Retail Limited, and Hefeng Pharmaceutical Co. Limited in Guangxi province, China. It operates a large regional retail network in Guangxi province, consisting of 208 directly owned retail stores in Guangxi province and currently over 8,000 products are distributed through the Company’s wholesale distribution network. For more information, please visit www.china-bct.com.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including: changes from anticipated levels of sales; future international, national or regional economic and competitive conditions; changes in relationships with customers; access to capital; difficulties in developing and marketing new products and services; marketing existing products and services; customer acceptance of existing and new products and services; and other factors detailed in the Company’s periodic filings with the Securities and Exchange Commission (http://www.sec.gov). Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation.

SOURCE China BCT Pharmacy Group, Inc.