China Sky One Medical acquires Peng Lai Jin Chuang Company

Under the terms of the agreement, China Sky One Medical’s wholly owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company, acquired 100% of Jin Chuang’s assets for a cash payment of approximately $7.1 million, consisting of $2.5 million in cash and $4.6 million of China Sky One Medical’s common shares.

Yan-qing Liu, chairman, CEO and president of China Sky One Medical, said: “This acquisition complements our business, and we expect to realize greater synergies as we incorporate Jin Chuang’s assets and broaden our manufacturing capabilities and product line even further. Even though Jin Chuang is a newly established company not begun to manufacture, we expect it will begin to contribute to our profitability at the end of 2008.”