I Project name

Traditional Chinese Medicine Cultural Industry Base of Yantai Bohai Pharmaceutical Group

II Brief introduction to the project undertaker

Founded in 1971 and listed in 2010 in America, this Group mainly deals with the R& , production and marketing of traditional Chinese medicine (TCM)and crude drugs. It has many subsidiaries like Yantai Bohai Pharmaceutical Co., Ltd., Yantai Tianzhen Pharmaceutical Co., Ltd., Yantai Tianzhen Drugs Research and Development Co., Ltd.

III Project content and construction scale

This project will consist of five sections: 1. base of Bohai Pharmaceutical headquarter, 2. drug research institute, 3. TCM and bio-medicine production base, 4. logistics center, 5. TCM-themed health maintenance tour which includes unique hotel, Baicao Group tour area and TCM care center. With a planned land coverage of 321,274 square meters and a total construction area of 244,000 square meters, this project has three stages, wherein the first stage (total construction area about 157,600 square meters) is designed to build one TCM production base, one biologicals production base and one drug research institute.

IV Construction conditions of the project

This project is located at Jindoushan Road, Laishan Economic Development Zone. Its first stage --- Shenzhou Medicine Project has been completed and put into operation. This stage has been invested RMB 120 million Yuan and developed a land coverage of 115,827 square meters.

V Total investment of the project

310 million U.S. dollars

VI Market and economic benefic analysis and forecast

After the project being put into production, its annual operating income can increase RMB 2 billion Yuan, and its profits will be RMB 500 million Yuan.

VII Ways of cooperation

Joint venture and cooperative operation

VIII Contact information

Person to contact: Liu Yongjun

Telephone number, Fax number: 0086-535-6763222

E-mail: liuyongjun189@163.com