Skystar Bio-Pharmaceutical Initiates Pre-Production Field Trials of Met-Enk to Boost the Immune System and Treat Viral Diseases in Livestock

XI’AN, CHINA--(Marketwire - August 20, 2009) - Skystar Bio-Pharmaceutical Company (NASDAQ: SKBI) (“Skystar” or the “Company”), a China-based producer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced that it has initiated early-stage field experiments of its proprietary Methionine Enkephalin (Met-Enk) powder. Met-Enk is designed to boost the immune system of livestock, which helps animals’ immune systems to better resist certain viral diseases including Porcine Circovirus, Porcine Reproductive and Respiratory Syndrome. These viral diseases are extremely costly to the Chinese livestock industry as current drugs are largely ineffective against them.

Early studies in pigs and guinea pigs suggest that when Met-Enk is injected it could prove effective in preventing the onset of swine-related H1N1 and H3N2 viruses, or swine flu, Coronavirus, Influenza A, Herpes, HIV, Cytomegalovirus, Japanese encephalitis and Friend leukemia virus. Skystar is pursuing additional studies to verify these findings.

Met-Enk is an endogenous opioid peptide that naturally occurs in the brain to control and increase the animal’s immune system. Skystar has independently synthesized Met-Enk into a freeze-dried powder form, which makes it easy to produce on a large scale, does not lose its potency when stored for long periods of time and makes it easier to package and deliver.

“We are continuing to build our portfolio of products and are on track to meet our goal of introducing 40 new products this year,” said Weibing Lu, Skystar’s Chairman and Chief Executive Officer. “The addition of Met-Enk marks an important addition to our arsenal of veterinary medications as it could play a significant role in helping to prevent and treat costly viral-based diseases among China’s farm breeding industry. We’re currently distributing Met-Enk to a select group of our large scale farming customers. Early feedback indicates that our customers have found Met-Enk is particularly useful when given to the animal at birth. When used as a standard precautionary measure it will help maintain the overall health of the livestock and our customers have seen notable declines in abortion, still birth rates and increased weaned pig survival rates. We plan to increase production and roll-out this product to our complete customer base in the coming months.”

About Skystar Bio-Pharmaceutical Company

Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, micro-organisms, vaccines and feed additives) and over 170 products, with over 40 additional products in the developmental stage. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit http://www.skystarbio-pharmaceutical.com.

To be added to the Company’s email distribution for future news releases, please send your request to skystar@tpg-ir.com.

Forward-looking Statements

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