HANGZHOU, China, May 16 /PRNewswire-FirstCall/ -- Aida Pharmaceuticals, Inc. (OTCBB: AIDA), one of mainland China's leading pharmaceutical companies, today announced its financial results for the first quarter ending March 31, 2007. The Company reported a net loss of $160,204, or $0.01 per share, for the first quarter of 2007 versus net income of $14,536, or $0.00 per share, for the first quarter of 2006. Revenues and gross profits were roughly flat, reflecting the typical seasonal weakness of the first quarter, and non- recurring government grants declined substantially. Full details of the Company's year-end financial results are available in the Company's Form 10-KSB at http://www.sec.gov/. Financial Performance: -- Revenues for the quarter ended March 31, 2007 totaled $5,296,176, a 0.7% decrease from revenues of $5,331,827 for the quarter ended March 31, 2006. An 11.6% increase in injection sales offset modest decreases in Etimicin powder and transfusion sales. First quarter sales are seasonally the weakest of the year, owing to the nearly month-long Chinese New Year holidays. -- Gross profit margins stabilized at 43.9% for the quarter ending March 31, 2007, versus 44.1% for the first quarter ending March 31, 2006, as the Company cycled through the sales mix changes that first appeared in early 2006 and decreased gross margins. Gross profit totaled $2,323,660 in the first quarter of 2007, a decrease of approximately 1.1% versus gross profit of $2,348,713 in the first quarter of 2006, owing to the slight decline in sales. -- Income from operations totaled $27,312 for the quarter ended March 31, 2007 versus income from operations of $19,234 for the quarter ended March 31, 2006. Increases in general and administrative and research and development expenses were offset by a substantial decline in selling and distribution expenses. The decline in selling and distribution expense reflects the Company's rationalization of its sales and distribution channels during the latter part of 2006. -- The net loss totaled $160,204, or $0.01 per share, for the quarter ended March 31, 2007 versus net income of $14,536, or $0.00 per share, for the quarter ended March 31, 2006. The net loss, despite increased income from operations in the quarter, largely reflects a decline in non-recurring government subsidy grants to the Company. Government grants amounted to $49,723 for the quarter ended March 31, 2007, versus $459,993 for the quarter ended March 31, 2006. -- Cash and equivalents decreased to $4,930,714 as of March 31, 2007 from $6,116,816 at year-end 2006. Accounts receivable declined to $9,442,779 as of March 31, 2007 from $13,777,571 at year-end 2006, owing to management's decision to take a reserve against receivables in the first quarter of 2007. The reserve reflects the inability of several small customers to make their payments in a timely way. Shareholders' equity remained roughly flat at $10,360,895 as of March 31, 2007 versus $10,352,218 at year-end 2006. Weighted average shares outstanding increased to 27,000,000 for the quarter ended March 31, 2007, from 25,000,000 for the quarter ended March 31, 2006. "Our gross margins have now stabilized, as we've cycled through the sales mix changes that first appeared in early 2006," said Jin Biao, Aida's chairman and chief executive officer. "We encountered some unforeseen circumstances with the inability of several small customers to pay in a timely manner and decided it was most prudent to take a reserve against our receivables this quarter. We've restructured our sales channels to avoid such circumstances going forward. These collective actions should strengthen our future financial position." Biao continued, "We expect our revenue and earnings growth to average 30% per year over the next five years, as a result of strong growth in Etimicin consumption, along with our pipeline of new drugs for cancer, hepatitis and stroke and our focus on selective acquisitions. We continue to focus on more closely aligning Aida's valuation with our strong growth profile." COMPARATIVE RESULTS For Quarter Ended 3/31/07 3/31/06 Revenue $5,296,176 $5,331,827 Cost of Goods Sold (2,972,516) (2,983,114) Gross Profit 2,323,660 2,348,713 Gross profit margin (%) 43.9% 44.1% Income from Operations 27,312 19,234 Net Income (Loss) (160,204) 14,536 Net Income (Loss) per share (0.01) 0.00 Weighted average shares outstanding 27,000,000 25,000,000 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. For additional information, please visit http://en.aidapharma.com/. Aida Pharmaceuticals, Inc. 31 Dingjiang Road Jianggan District Hangzhou, China 310016 Investor Relations: Equity Performance Group Bethany Tomich (617) 723-1465 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 is 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: Bethany Tomich of Equity Performance Group for Aida Pharmaceuticals, Inc., +1-617-723-1465, Web site: http://en.aidapharma.com/ http://www.equityperformancegroup.com/

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