First China (OTC:FCPG) Signs Distribution Agreements with Hospitals in China

First China Pharmaceutical Group, Inc. (OTC:FCPG) hit a new 52-week high today of $1.49 on heavy volume after announcing new distribution clients in China. In late trading, shares of First China were still up 20 percent at $1.38 per share on volume of more than 718,000 shares compared to its average daily volume of only 237,000 shares. First China has a market cap of $62 million with a 52-week between $0.80 and $1.49 per share.

First China, a rapidly growing pharmaceutical distribution company headquartered in Yunnan, China, announced the recent signing of agreements to distribute its full inventory of over 5,000 medicinal and pharmaceutical product lines to two district hospitals in Yunnan Province, resulting in a total of ten new hospital agreements in less than 60 days, a significant increase in market share for the Company.

First China's Management welcomes the Kunming Maternal & Child Health Care Hospital and Kunming General Hospital of Chengdu Military Command to the Company's rapidly growing list of institutional customers.

First China plans to continue its strategic growth of the company as demonstrated by announcements on November 3rd outlining the Company's intent to acquire the interests of De Xin Pharmacy of Kunming City as a potential flagship retail outlet, and the November 30th news announcing intent to acquire the interests of Shandong Run Kang Pharmaceutical Co. Inc. of Jinan City in Shandong Province, a well-positioned and undervalued regional distribution company offering excellent development upside potential.

First China plans to continue the growth of the company from its current position as a provider of approximately 5,000 drugs to more than 4,700 pharmacies, hospitals and clinics in China's Yunnan Province. The Company intends for its business model to leverage the efficiencies of internet ordering and fulfillment and to rapidly expand its capacity to approximately 30,000 products. It is estimated that a broader product line will ensure customers will be able to order 60% to 70% of their product needs directly from the Company.

First China aims to develop a high growth pharmaceutical distribution company generating significant revenue from the sale of healthcare products in China. As part of its business strategy, the Company has acquired the assets of Kun Ming Xin Yuan Tang Pharmacies Co. Ltd., which includes a strategic advantage over its competitors as it is believed to be one of a limited number of pharmaceutical distribution companies in Yunnan Province that has obtained government approval to fulfill orders over the Internet.

For more information visit: www.firstchinapharma.com

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