HANGZHOU, China, Dec. 7 /PRNewswire-FirstCall/ -- Aida Pharmaceuticals, Inc. (OTC:AIDA) (BULLETIN BOARD: AIDA) , one of mainland China's leading pharmaceutical companies, today announced Chairman Jin Biao has issued a letter to the Company's shareholders: To Our Shareholders: On behalf of the management team and employees of Aida Pharmaceuticals, I am pleased to be sending you this year-end message. Since becoming a publicly- traded company in 2005, Aida Pharmaceuticals has experienced significant growth in a very short period of time. Led by a highly-respected management team with world-class academic, scientific and corporate experience, Aida Pharmaceuticals has managed significant growth in 2006, while aggressively developing a diverse portfolio of innovative Western-style, chemistry-based drugs. The Company is patterned after a Western business model, ensuring strong quality assurance, cost control, and inventory management through recognized ecologically-friendly practices ISO14001 and China's Good Manufacturing Practices ("GMP") and has implemented Western corporate governance and transparency standards. Through the third-quarter of 2006, Aida Pharmaceuticals' EPS doubled, our net income more than doubled and our gross margins improved sequentially. Most significantly, net income totaled $919,285, increasing 130.4% sequentially versus net income of $398,888 in the second-quarter of 2006 and increasing 25.8% versus net income of $730,540 in the third-quarter of 2005. Aida also reported earnings per share of $0.04 in the third quarter of 2006, versus $0.02 in the second-quarter of 2006 and $0.03 in the third-quarter of 2005. The Company expects these positive growth trends to continue through the fourth quarter 2006, historically Aida's strongest revenue period, due to the Company's competitive product cost position. The Company projects fiscal year-end 2006 sales of approximately $29 million, making 2006 our best year by far. Aida anticipates revenues and earnings growth to average 30% per year over the next five years, as a result of strong growth in Etimicin Sulfate consumption, along with our pipeline of new drugs to treat Cancer, Hepatitis and stroke and management's focus on selective acquisitions. 2007 is expected to be a strong year for Aida Pharmaceuticals. Our current flagship product, Etimicin Sulfate, the first and only antibiotic developed in China, continues to experience, what we see as, unabated market growth. The patent for Etimicin Sulfate is protected through 2013. Aida leads the Etimicin Sulfate market with 80% market share in mainland China, equivalent to over 6 million 100mg units sold (Etimicin powder is sold for approximately US$7.57/100 mg to patients). We also anticipate Phase II and III clinical testing for our development- stage genetic therapy cancer treatment, Rh-Apo2L, to be completed in 2007. Production approval is expected shortly thereafter. We believe Rh-Apo2L will be the catalyst for explosive growth in 2008 resulting in potential EBITDA of $58.3 million on potential sales of $113 million. We believe these numbers could increase significantly thereafter as the brand grows. Being a leader in the Chinese pharmaceutical industry requires an outstanding strategy for growth and a relentless focus on customers. It requires expertise in manufacturing processes. It requires a deep understanding of the products that consumers want and need. It also requires a vision of where the industry is heading. These requirements play to Aida Pharmaceuticals' strengths and make us uniquely qualified to be a leader in this industry. Combined with our strong history of innovation, risk management expertise, market leadership, superior customer service and strong capital position, I am confident in our ability to continue to grow and bring meaningful pharmaceutical treatments to market. Thank you for your continued confidence and support. Sincerely, Jin Biao Aida Chairman About Rh-Apo2L: Rh-Apo2L is an anti-tumor biological agent researched and developed by Shanghai Qiaer Biotechnology Co., Ltd., a newly acquired subsidiary of Aida Pharmaceuticals. Rh-Apo2L is a broad spectrum genetic cell apoptosis (cell- killing) agent, which the Company expects to be used for the treatment of a variety of cancerous tumors. Research and Development of Rh-Apo2L is sponsored and supported by several national and municipal funds. One patent of Rh-Apo2L has been granted by Chinese Patent Bureau, two additional patents are currently in process. To learn more about Rh-Apo2L, please visit http://www.equityperformancegroup.com/aida_einvestor_kit/QiaerBiotechFAQ.pdf. About Aida Pharmaceuticals: Aida Pharmaceuticals is a product-focused pharmaceuticals company engaged in the formulation, clinical testing, registration, manufacture, sales and marketing of advanced pharmaceutical and genetic products in mainland China. The Company's mission is to discover, develop and market meaningful new therapies that improve human health. Aida, in operation since March 1999, is headquartered in Hangzhou, China with manufacturing, distribution and sales points throughout mainland China. Aida is GMP certified in China and ISO9002 certified for quality assurance and ISO14000 certified for ecologically- friendly practices. Aida is now producing and marketing a patented prescription drug in China, Etimicin Sulfate. It is the first antibiotic developed in China and is regarded as a category "A" drug by the State Food and Drug Administration of China. Contact Information: Aida Pharmaceuticals, Inc. 31 Dingjiang Road Jianggan District Hangzhou, China 310016 http://www.aidapharma.com/ Investor Relations: Equity Performance Group Gary Geraci (617) 723-2373 http://www.equityperformancegroup.com/ Safe Harbor Statement: Under the Private Securities Litigation Reform Act of 1995: This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on Aida Pharmaceuticals, Inc.'s management's current expectations and are subject to risks and uncertainties and changes in circumstances. All forward-looking statements included in this press release are based upon information available to Aida Pharmaceuticals, Inc. as of the date of the press release, and it assumes no obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. These forward-looking statements may relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Further information on risks or other factors that could affect Aida Pharmaceuticals, Inc.'s results of operations are detailed in its filings with the United States Securities and Exchange Commission available at http://www.sec.gov/. DATASOURCE: Aida Pharmaceuticals, Inc. CONTACT: Investor Relations, Gary Geraci of Equity Performance Group, +1-617-723-2373, or , for Aida Pharmaceuticals, Inc. Web site: http://www.aidapharma.com/ http://www.equityperformancegroup.com/

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