NEW YORK, July 10, 2003 (PRIMEZONE) -- Hubei Pharmaceutical Group, Ltd. (OTCBB:HBEI), Hubei Zenith Airbeck Pharmaceutical Co. Ltd. (Airbeck) and Hubei Pharmaceutical Co. Ltd. (HBJV) are pleased to announce the completion of the transfer of the Airbeck dosage division's assets to the new HBJV joint venture between HBEI and Airbeck. Hubei Pharmaceutical Group also announces completion of the acquisition of a controlling interest of 57.1% in the Joint Venture pursuant to the acquisition agreement between HBEI and Red Dot Capital Inc. announced previously.
The new joint venture is located in Xiangfan City, Hubei Province, a hotbed of Chinese Pharmaceutical production. It is licensed for research, development, production and sales of pharmaceutical products. All business and pharmaceuticals product licenses have been transferred to HBJV and trademark re-registration for each of the products has been completed. In total, 120 products and 114 underlying production licenses, some of which are well-established brand names in the domestic market, have been registered. All business previously conducted by Airbeck's dosage division will be conducted by HBJV. This includes production and distribution of pharmaceuticals in all standard dosage forms including injections, tablets, capsules, creams and granules. HBJV will implement a more aggressive business plan to build on the many years of successful history and to prepare the company for additional market opportunities anticipated as a result of China's favorable stance toward privatization and export market development as a recent entrant into the World Trade Organization.
Mr. David Gong, HBEI's Chief Representative in China comments: "We are very pleased to see the transfer of assets completed. Airbeck's dosage division brings with it over 35 years of exemplary history and is well known in China and several overseas markets. It is a very solid foundation from which to lever and integrate a skilled workforce, existing distribution pipeline and significant production capacity with additional management expertise and a modernized approach. I believe our joint venture will successfully build on this legacy and am excited by the prospect of early stage successes as we modernize packaging, streamline our business processes and build upon an already profitable operational base."
On behalf of the board of directors,
Reid Li, President
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