BOCA RATON, Fla., March 21, 2006 (PRIMEZONE) -- Genesis Technology Group, Inc. (OTCBB:GTEC) announced that its subsidiary, Genesis Equity Partners, LLC, signed a contract with the Liang Fang Pharmaceuticals, Ltd., one of China's most respected and innovative drug development, medical device, and retail drug store enterprises.
Liang Fang reportedly grossed over $15.8 million in revenues, almost $ 2.6 million in net profits in 2005, plus net assets exceeding $ 7.5 million. For the past three fiscal years combined, Liang Fang's revenues exceeded a total of $ 31.2 million. Based on its first quarter sales for 2006, the Beijing-based manufacturer, which also has 10 retail outlets, forecasts an increase to over $20 million in revenues this year. Genesis Equity Partners will receive a significant equity position in Liang Fang and ongoing consulting fees for coordination and oversight of its U.S. business activities.
Among Liang Fang's best selling products, Valsartan Capsules are a medicine for primary hypertension or high blood pressure. Valsartan first came to market in America in 1996, known as Diovan. The Novartis AG version of the Diovan product generated almost 17 percent of that company's 2004 revenues from branded pharmaceuticals. Novartis predicted the drug might be its first to generate annual revenues of more than $5 billion.
Dr. Liu Zhongyi, CEO of Liang Fang, commented: "In July 2001, the National Drug Administration authorized Liang Fang for the production of Valsartan. With increased production and marketing, we believe that it should dominate the Chinese market, where over nine percent of the population suffers from high blood pressure.
"Valsartan is just one example of the important and successful array of drugs that Liang Fang has acquired or developed and marketed over the years. Liang Fang intends to become a global brand, although the market in China is large enough to sustain our growth rate at over 40% annually. We realize that Western marketing is often the key to such success, and we intend to capitalize on Genesis's expertise and network in China, Latin America, and the United States.
"We selected Genesis because of its long history of success and expertise in China. We carefully studied its GEP merger and acquisition program, and believe that Liang Fang can flourish globally. In our evaluation, we also reviewed the performance of another Genesis Chinese client, SunWin Neutraceuticals (OTCBB:SUWN), and we are confident that Liang Fang could exceed its success, as a U.S. publicly traded company," concluded Dr. Liu.
Dr. Shaohua Tan, the Genesis Director who negotiated the Liang Fang contract, added: "We are enthused to add Liang Fang to the list of GEP clients. This month, Messrs. Wolfson and Clinton joined me in inspecting the world-class Liang Fang manufacturing plant and two of its Beijing retail stores. The Company's management, facilities and obvious growth potential impressed us immensely.
"Last month, we announced that Gold Horse International became the newest member of our innovative merger and acquisition program. Its market sector, construction and real estate development, ranks among the most active in China. Now, with Liang Fang, we are entering the health care and pharmaceutical arena, perhaps the fastest growing industry worldwide."
Annual Shareholders Meeting scheduled on Friday, May 19, 2006, at 1 o'clock P.M. at the China World Hotel in Beijing, China, located at No. 1 Jianguomenwai Avenue; telephone (8610) 6505-2266, facsimile (8610) 6505-0828, email cwh@shangri-la.com and website http://www.shangri-la.com.
About Liang Fang Pharmaceuticals, Limited
Liang Fang Pharmaceuticals, Ltd. is a large comprehensive enterprise which deals in an integration of the production, trade and retailing of pharmaceuticals. It possesses the most advanced pharmaceutical-making equipment now in China, workshops authenticated by the National GMP, a number of first-rate medicines and other types of medicines produced solely in this corporation, and a large group of high-tech personnel. Liang Fang covers a business and office area of 2,000 square meters and a storehouse of 1,000 square meters. Altogether there are four organs attached to this corporation handling respectively the scientific research on new medicine, the production, wholesale and retail of medicine.
About Genesis Technology Group, Inc.
Genesis Technology Group, Inc. is a business development firm that fosters bilateral commerce between Western and Chinese companies. Genesis has created successful profit centers in product development, manufacturing, distribution, joint ventures and operational services. The Company has offices in the United States and China. A 75% owned subsidiary of Genesis, Genesis Equity Capital, LLC assists Chinese and Western companies in formulating strategies to increase equity value, while targeting Western stock exchanges as a source of capital and shareholder support. The core strength of GEP management is creating a first rate plan to create investor awareness and bring in long-term individual and institutional investors. GEP should create liquidity in the stock and gain investor awareness by using tested channels of communications by cogently articulating the companies' stories. GEP has built successful channels with expertise in screening and selecting Chinese companies that possess solid business histories and professional management, and North American public companies and shells that possess a shareholder base and a history of auditing and filing, as required by the U.S. Securities & Exchange Commission. For more information, visit www.genesis-technology.net.
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