BOCA RATON, Fla., May 11, 2006 (PRIMEZONE) -- Genesis Technology Group, Inc. (OTCBB:GTEC) announced that Lotus Pharmaceuticals, Inc., its health care and pharmaceuticals partner in Beijing, has commenced programs to increase its 2006 revenues above $20 million with about 15% in net profits, to launch its new U.S. public corporation through a reverse merger, and to establish Lotus as a national brand in China. New facilities, manufacturing capability, and four drugs scheduled to come to market in the fall all contributed to the increased forecasts. Based on these revised projections and its significant equity stake in Lotus, Genesis estimates its own net gain could exceed $2 million.
At present, Lotus is undergoing an independent audit of its financial statements by a New York certified public accounting firm that will enable Genesis to create the publicly traded company, in which Genesis will have a percentage ownership, during this calendar year. Since March 2006, when Genesis Equity Partners acquired a significant interest in Lotus Pharmaceuticals, Inc., Lotus increased its revenues and profits forecasts by over 30% based on first quarter sales -- exceeding $5 million -- and these three major developments, announced last week:
-- Lotus opened its newly-built facilities to produce freeze-dry
powder injections, small-volume injections and eye drops with
total investments of $245,000, which passed the National GMP
Certification with the Certificate Number G3452.
-- Exclusive new drug curing open-angle glaucoma, alpha-2 Receptor
Excitant-brimonidine tartrate material and eye drops (Muxin) was
approved by the State SFDA (registration number of approval: SDPD
H20041215), and came to market in September; the sales in three
months totaled RMB $244,000 with a profit of $100,000.
-- Levofloxacin Lactate Freeze-Dry Powder Injection (Junxin), the
broad spectrum antibiotic ranks first on use level in the world
was approved by the State SFDA (registration number of approval:
SDPD H20050501), and also came into the market in September; the
sales in three months was $400,000 with a profit of $134,000.
Dr. Liu Zhongyi, CEO of Lotus Pharmaceuticals, commented: "Lotus is on track to become a U.S. publicly traded company in 2006. With Genesis as our equity partner and U.S. representative, we are confident that Lotus will be well received by investors. Our goal is to establish Lotus (known in China as Liang Fang) as one of the country's most prominent pharmaceutical companies. Future investment will not only expand Lotus's market nationally, but, ultimately, we believe that it could become an international brand.
"In addition to well-established Valsartan Capsules for the treatment of hypertension, Lotus has submitted the following new drugs for SFDA approval and marketing in China:
1. Broad spectrum antibiotic: Gatifloxacin Lactate Injection
(Acceptance No.: CXHS0503239 Beijing and CXHS0503240 Beijing)
2. Broad spectrum antibiotic: Gatifloxacin Lactate Freeze-Dry Powder
Injection (Acceptance No.: CXHS0503288 Beijing and CXHS0503289
Beijing).
3. A new drug used to cure acute and chronic ambient circulatory
disturbance, and ameliorate the low conation caused by cerebral
infarction sequela and affective disturbance: Nicergoline
Freeze-Dry Powder Injection (Acceptance No.: CYHS0506815 Beijing).
4. A new drug used to cure cerebral edema resulted from various
courses of disease, swelling caused by wound or operation and
venous return disturbance: Sodium Aescinate Freeze-Dry Powder
Injection (Acceptance No.: CYHS0506816 Beijing and CYHS0506817
Beijing).
Continued Dr. Liu: "We anticipate these drugs coming to market in October 2006, and the impact on our sales should be substantial. On Friday, May 19, 2006, at the Genesis Annual Shareholders Meeting in Beijing, I will present a detailed report on the growth and future of Lotus Pharmaceuticals."
Dr. Shaohua Tan, a member of the Genesis Board of Directors who oversees its China operations, repeated his explanation of the GEP program: "These developments are a good example of the success of the Genesis business model. Basically, Genesis invests time, effort and money to secure a significant position in Chinese companies with experienced management and a history of success in China. The screening process is rigorous, and few candidates qualify to become GEP partners. Those that do then undergo an independent audit of their financial statements. After months of due diligence and contributions by our auditing, legal and management teams, we can launch these restructured and dynamic companies as U.S. publicly traded corporations.
"The value proposition is clear: the GEP partner companies offer assets, revenues and profits well beyond those available in the West at the costs and investment levels we can negotiate. Furthermore, with the likelihood of the revaluation of the yuan (Chinese dollar) against the U.S. dollar, most experts speculate that the value of such Chinese assets could increase above 25%; of course, this would concomitantly impact the revenues and profits at the same levels. We believe that Genesis has created a business model that could provide sustained profitability for our Company," Dr. Tan concluded.
Note: The Annual Shareholders Meeting has been scheduled for 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 Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. (known in China as 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. Lotus 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. The new Lotus Pharmaceuticals website is under construction.
About Genesis Technology Group, Inc.
Genesis Technology Group, Inc. is a business development firm that fosters bilateral commerce between Western and Chinese companies. The Company has offices in the United States and China. A 75% owned subsidiary of Genesis, Genesis Equity Partners, 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 US Securities & Exchange Commission. For more information, visit www.genesis-technology.net
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