Biostar Pharmaceuticals Awarded Approximately $8M Contract in China

Biostar Pharmaceuticals, Inc.

("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that on November 26, 2012, it signed another one-year agreement valued at approximately $8 million to manufacture and supply Xijing Military Hospital with 16 new drugs used to treat a variety of diseases such as pharyngitis, nasopharynx, gastroenteropathy, nephropathy, asthma, hyperplasia of mammary glands, dermatosis, gynecological diseases, etc. The material terms of this agreement are similar to those of the first two one-year agreements signed with the same hospital in September and October 2012 for $3.6 million and $3.0 million, respectively.  With this new agreement, Biostar will be manufacturing a total of 24 drugs for Xijing Military Hospital (10 granules, 13 capsules, and one powder drug) with a combined value of $14.6 million. Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "We are pleased to have signed another drug manufacturing contract with Xijing Military Hospital as we continue to expand our drug portfolio with high quality products that are manufactured specifically for the needs of this hospital.  The signing of these agreements