Skystar Bio-Pharmaceutical’s Primary Veterinary Medication Facility in Huxian Province Resumes Production and Distribution

XI’AN, CHINA--(Marketwire - November 05, 2012) - Skystar Bio-Pharmaceutical Company (NASDAQ: SKBI) (“Skystar” or the “Company”), a China-based manufacturer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced that its primary production facility for veterinary medicines in Huxian, China has resumed production and distribution in October 2012. Production was allowed to resume at the 45,000 square foot veterinary medicine facility following Good Manufacturing Process “GMP” recertification by the Ministry of Agriculture and physical receipt of a GMP certificate. The veterinary medication line contributes significant annual revenue, accounting for roughly two-thirds of Skystar’s fiscal 2011 sales. Skystar’s two veterinary medicine facilities in Jingzhou and Huxian province have now resumed production and possess GMP certificates valid for 5 years.

Mr. Lu, Chairman and CEO, commented, “We are pleased to resume production of the Company’s veterinary medication lines at both our Huxian and Jingzhou plant which was recently GMP recertified. As a leading provider of veterinary medicines in China, the Company looks forward to resuming support and providing products for the animal husbandry needs of its customer base. China’s market for veterinary medicines continues to grow as the industry moves towards national production standards for livestock, poultry and aquaculture. In line with this trend, the Company’s production facilities will be core to its mission of expanding the Company’s footprint distribution, customer base and sales of its products. We look forward to providing an operational update and outlook to shareholders for all of our production lines when the Company reports its full fiscal year.”

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 284 products. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit http://www.skystarbio-pharmaceutical.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the Company’s ability to receive timely certification and related government approvals, its ability to capitalize and generate expected revenue following GMP certifications, its ability to continue additional sales and related expenses in connection with the anticipated increased production levels effect of changing economic conditions in The People’s Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.