Pingchuan Signs Regional Distribution Contract With Beijing Pingchuan Tianzhi Medical Technology Development Center HARBIN, China, June 14 /Xinhua-PRNewswire-FirstCall/ -- Pingchuan Pharmaceutical Inc. (OTC:PGCN) (BULLETIN BOARD: PGCN) ('PGCN') announced today that PGCN signed a Regional Distribution Contract with Beijing Pingchuan Tianzhi Medical Technology Development Center ('TIANZHI'), a subsidiary wholly invested by Pingchuan Pharmaceutical Inc. By the condition of the contract, PGCN authorized TIANZHI as its exclusive distribution agent for the health care product -- Kangda'an sugar capsule. The contract regulates TIANZHI that during the year of 2005, its sales index will be totaled to 60,000 bottles. Meanwhile, TIANZHI will take the position of exclusive agent in mainland China (excluding Yunnan, Guizhou, Sichuan, Hunan, Guangdong, Shanghai, Liaoning, Jilin and Heilongjiang). With the contract signed, it will bring to PGCN approximately RMB900,000 in sales revenue. Mr Hu Zhanwu, Chairman and president of PGCN, said that he was happy to see the contract signed and it was an effective way to promote the growth of sales in the areas around Beijing City. 'We chose TIANZHI as our sales agent for the belief that we are to strive to reach the market share of 1% - 1.5% for diabetes cure products in two years and achieve the sales goal of 300,000 bottles per year. Furthermore, our long-term objective is to make the Kangda'an sugar capsule the No.1 medicine for diabetes products in the Beijing area.' About Pingchuan Pharmaceutical Inc. Pingchuan Pharmaceutical Inc. ('PGCN') is a modernized pharmaceutical manufacturer with first-class medical R&D ability, pioneered medicine products, and well-established marketing network. Since its establishment, PGCN has focused its businesses on diabetes medicine and its medical products. The products of PGCN include health care products, varieties of medicine, as well as medical apparatus. Kang Da Glycosuria Capsule is a successful product of PGCN for treating diabetes, which was first developed in 1998 and introduced to the market in 2001. PGCN has well-established marketing network and sale branches, which include about 180,000 retail pharmacies/drugstores across China, agency network in major cities like Beijing, Shanghai, Guangzhou, and Xi'an, special counter sale at drug chain stores in key regions, residence community clinic sale and promotion, as well as internet marketing through the company's website. The marketing network of PGCN covers more than 50% districts of China and exports to US, Japan, Russia, and south-eastern Asia. About Beijing Pingchuan Tianzhi Medical Technology Development Center Beijing Pingchuan Tianzhi Medical Technology Development is grouped under Harbin Pingchuan Pharmaceutical Co., Ltd. in Jan. 2000. It is a wholly-owned subsidiary of Harbin Pingchuan Pharmaceutical Company. TIANZHI focuses on dealing with self-produced products, as well as dealing & distributing other medicines, health cares, pharmaceutical apparatuses and international trade businesses TIANZHI was authorized as the exclusive agent for the product of Kangda'an sugar capsule in Beijing area. By the end of 2004, TIANZHI printed out its good result that the total number of medicine bottles sold out was 26,000 and the sales revenue in 2004 was RMB400,000. Safe Harbor Information in this news release or on this website may contain statements about future expectations, plans, prospects or performance of Pingchuan Pharmaceutical Inc. that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be, " "expects," "may affect," "believed," "estimate," "project," and similar words and phrases are intended to identify such forward-looking statements. Pingchuan Pharmaceutical Inc. cautions you that any forward-looking information provided by or on behalf of Pingchuan Pharmaceutical Inc. is not a guarantee of future performance. None of the information on this website constitutes an offer to sell securities or investment advice of any kind, and visitors should not base their investment decisions on information contained in this website. Pingchuan Pharmaceutical Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond Pingchuan Pharmaceutical Inc.'s control. In addition to those discussed in Pingchuan Pharmaceutical Inc.'s press releases, public filings, and statements by Pingchuan Pharmaceutical Inc.'s management, including, but not limited to, Pingchuan Pharmaceutical Inc.'s estimate of the sufficiency of its existing capital resources, Pingchuan Pharmaceutical Inc.'s ability to raise additional capital to fund future operations, Pingchuan Pharmaceutical Inc.'s ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities and, in identifying contracts which match Pingchuan Pharmaceutical Inc.'s capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. Pingchuan Pharmaceutical Inc. does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. DATASOURCE: Pingchuan Pharmaceutical Inc. CONTACT: Xiao Yi of Pingchuan, +86-10-6347-0270 x101, or mobile, +86-1360-1383-001, or fax, +86-10-6342-1691, or

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