China Aoxing Pharmaceutical Corp. Announces Appointment of New Chief Financial Officer

NEW YORK, NY--(Marketwire - January 20, 2010) -

China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG) (“China Aoxing”), a pharmaceutical company specializing in research, development, manufacturing and distribution of narcotic and pain-management products, today announced that it has appointed Dr. Hui Shao as Chief Financial Officer, effective immediately.

“We are very delighted to welcome Dr. Shao into his new appointment as Chief Financial Officer of the Company,” said Zhenjiang Yue, Chairman and CEO of China Aoxing. “We believe Dr. Shao’s global vision and expertise in the healthcare industry will enhance our operations and financial capabilities immediately as our company embarks on a new era of growth and international endeavors. He will certainly strengthen our profile as a publicly listed company.”

Dr. Shao brings a broad business and financial acumen with over 14 years of extensive financial, accounting, private investment and strategic business development experience across various aspects of the global healthcare industry. Since 2007, Dr. Shao has served as the Company’s Vice President of Finance. Prior to joining the Company, Dr. Shao was a Senior Analyst at Mehta Partners and Kamunting Street Capital Management in New York, where he was responsible for a healthcare investment portfolio of over $100 million across North American and European companies. Dr. Shao was a Principal Scientist, leading metabolic disease and oncology projects at Roche Pharmaceuticals, before he started his career on Wall Street.

Dr. Shao earned his MBA in Finance and Accounting from the Stern School of Business, New York University. He earned his Ph.D. in Bioorganic Chemistry from the University of California, San Diego. He is a Chartered Financial Analyst (CFA) and a member of the New York Society of Security Analysts (NYSSA).

Dr. Shao commented, “I am excited to have the opportunity to expand my role at the Company. Our business is making significant progress on every front. I look forward to seeing these endeavors to fruition and believe that China Aoxing will be in an excellent position to benefit from the rapid growth and market dynamics of its pain management therapeutics.”

With Dr. Shao’s appointment, Ms. Hongyue Hao will step down as the Acting CFO. Ms. Hao will continue to be the Vice General Manager of Financial Operations and Reporting of Hebei Aoxing Pharmaceutical Group Company, Inc., the main operating subsidiary of China Aoxing.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG) is a pharmaceutical company specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE: AOB). Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China’s largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company’s filings with the Securities and Exchange Commission, including the Form 10-K for the year ended June 30, 2009, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.