Company Contact:		CCG Investor Relations:
Renhuang Pharmaceuticals, Inc.		Mr. Mark Collinson, Partner
Ms. Portia Tan, IR Contact		Phone: +1-310-954-1343 (Los Angeles)
Tel: 86-451-8260-2162		Email: mark.collinson@ccgir.com
Email: ir@renhuang.com		Website: www.ccgirasia.com

		Mr. Crocker Coulson, President
		Phone: +1-646-213-1915 (New York)
		Email: crocker.coulson@ccgir.com

Harbin, China – September 20, 2010 – Renhuang Pharmaceuticals, Inc. (NYSE Amex: CBP) (“Renhuang” or the “Company”), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines (“TCM”), today announced its financial results for the third quarter ended July 31, 2010 and affirmed financial guidance for fiscal year 2010.

“Our third quarter sales and net income are historically modestly lower as compared to those in the first two quarters due to seasonality of our product portfolio,” said Mr. Shaoming Li, the Chairman and CEO of Renhuang. “Demand for our products often peaks in the fourth quarter, which represents the start of the flu season. Despite the third quarter being a historically slow quarter, we are pleased with the year-over-year growth in net sales and net income. It is also pleasing to report that our recently introduced products, Banlangen Granules and Compound Honeysuckle Granules, have been key drivers supporting our sales growth and strong margins.”

For the third quarter ended July 31, 2010, net sales were $9.3 million, up 43.8% from $6.4 million in the same quarter last year. The sales increase was largely attributable to strong growth in sales of the Company’s recently introduced products, Banlangen Granules and Compound Honeysuckle Granules, and an increase in the average selling prices (ASP) of certain of the Company’s products. Banlangen Granules and Compound Honeysuckle Granules accounted for 26.2% of gross sales in the quarter. ASP rose 5.1% year-over-year in the third quarter of fiscal 2010, which included lower average sales rebates. Except for Shark Vital Capsules, ASP’s across all product categories rose on a year-over-year basis.

Gross profit in the quarter increased 32.7% to $4.6 million, as compared to $3.5 million for the same period of 2009. Gross margin for the quarter ended July 31, 2010 decreased to 50.1% from 54.3% in the comparable fiscal 2009 quarter. The year-over-year decline in margin was mainly due to lower sales of the Company’s higher-margin product, Shark Vital Capsules during the third fiscal quarter.

Operating expenses for the third quarter of fiscal 2010 were $3.2 million, as compared to $2.8 million in the same period last year. Sales and marketing expenses rose to $1.3 million from $1.1 million. The spending increase reflected continued investment in the Company’s distribution network and TV advertising in order to increase product market share and create greater consumer awareness of the Company’s premium quality products. General and administrative expenses declined 21.0% to $0.4 million, primarily as a result of the Company’s strategic decision to purchase office space in the second fiscal quarter which resulted in savings on rental expenses for its factory and administrative office. Research and development expenses increased 24.6% to $1.5 million as the Company’s pipeline of projects continues to advance and grow.

Operating income in the fiscal 2010 quarter was $1.4 million, up 116.4% from $0.7 million in the 2009 quarter. Operating margin increased significantly year-over-year to 15.5% from 10.3%. The Company did not incur income tax expenses as its subsidiary registered in the PRC has been granted a tax holiday for fiscal 2010. For the third quarter ended July 31, 2010, net income grew 115.8% to $1.5 million, or $0.04 per diluted share, from $0.7 million, or $0.02 per diluted share in the prior year period.

Total revenue for the nine month period ended July 31, 2010 was $38.5 million, an increase of 33.1% from $28.9 million for the first nine months in fiscal 2009. The strong growth in year-over-year sales was mainly due to the introduction of Banlangen Granules and Compound Honeysuckle Granules in the last quarter of 2009, and an increase in average selling prices for certain other products.

Gross profit in the first nine months of fiscal 2010 rose 34.8% to $20.3 million, representing a gross margin of 52.8% as compared to 52.2% in the first nine months of fiscal 2009. Operating income grew 35.3% year-over-year to $12.2 million. In the first nine months of fiscal 2010, net income was $12.2 million or $0.32 per diluted share, up from $9.0 million or $0.26 per diluted share in the first nine months of fiscal 2009.

As of July 31, 2010, Renhuang had $28.7 million in cash and cash equivalents. Working capital was $42.3 million with a current ratio of 18.0x, as compared to $8.1 million and 12.9x as of October 31, 2009. The Company had no debt on its balance sheet. At the end of the third quarter of 2010, shareholders’ equity was $63.1 million, as compared to $50.5 million at the end of fiscal 2009.

Cash flow from operating activities was $22.9 million for the nine months ended July 31, 2010, as compared to $3.1 million during the same period in the prior year. The cash flow increase was primarily attributable to an increase in net income and a decrease in trade receivables that reflected a change in credit terms and more aggressive receivable collection efforts year-over-year. Average days sales outstanding fell to 76 days in first nine months of fiscal 2010 from 249 in the first nine months of fiscal 2009.

Additionally in August 2010, Renhuang announced that the State Intellectual Property Office of China ("SIPO") of the People's Republic of China recently granted the Company patent protection for the product packaging design for its Compound Honeysuckle Granules, one of Renhuang's leading Traditional Chinese Medicine Products.

Renhuang is affirming its fiscal 2010 guidance for net sales in the range of $54.7-$55.6 million, which represents a 26% to 28% increase over reported revenues of $43.4 million in fiscal year 2009. The Company continues to expect fiscal 2010 net income, excluding any non-cash, non-operating gains and expenses (such as the change in fair market value of warrant liability), to be in the range of $18.6-$18.9 million, up 26% to 28% from net income of $14.8 million in fiscal year 2009.

Renhuang expects sales of its leading Siberian Ginseng products to expand as it benefits from further market penetration and the Company’s rapidly growing new products to continue their growth momentum driving future revenue and net income growth. Renhuang plans to terminate sales of Shark Vital Capsules by the end of the fourth quarter of 2010 and launch its new product, Badger Oil - a natural medicine for the treatment of burns with no known toxic side effects or allergic reactions in the same period. The Company also launched Qing Re Jie Du Oral Liquid, a TCM for the treatment of influenza and upper respiratory infections in June 2010 and Compound Schisandra Tables in July 2010, a new all-natural anti-depressant and nerve regulation product.

"During the current Spring and Autumn season, China battles with influenza (or common flu), which drives up the sales of our Banlangen Granules and Compound Honeysuckle Granules. These products have established a strong market reputation due to their high-quality and performance," added Mr. Li. “We will continue to maintain our focus on botanical anti depression and nerve regulation products, and invest in research and development of these products. Our target is to become the leading pharmaceutical company in botanical anti depression and nerve regulation medicine in China. In addition to focusing on organic growth, Renhuang continues to actively evaluate external growth opportunities through strategic acquisitions."

If you are unable to participate in the call at this time, a replay will be available on Tuesday, September 21, 2010 at 12.00 noon Eastern Time, through Tuesday, October 5, 2010. To access the replay, dial 800-642-1687. International callers should dial +1 706-645-9291. The conference ID number for the replay is 98347783.

Renhuang Pharmaceuticals, Inc. is engaged in the research, development, manufacturing, and distribution of botanical products, bio-pharmaceutical products, and traditional Chinese medicines ("TCM"), in the People's Republic of China. All of the Company's products are produced at its three GMP-certified production facilities in Ah City, Dongfanghong and Qingyang. The Company distributes its botanical anti-depression and nerve-regulation products, biopharmaceutical products, and botanical antibiotic and OTC TCMs through its network of over 3,000 distributors and over 70 sales centers across 24 provinces in China. Company Website: http://www.renhuang.com.

This press release contains certain statements that may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s beliefs, assumptions and expectations of the Company’s future operations and economic performance, taking into account the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known that may cause actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial condition expressed or implied in any forward-looking statements. These forward-looking statements are based on current plans and expectations and are subject to a number of uncertainties including, but not limited to, the Company’s ability to achieve its financial guidance, ability to manage expansion of its operations effectively, competition in the marketing and sales of its products, and other factors detailed in the Company’s annual report on Form 10-K and other filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein.

	July 31, 2010		October 31, 2009
	US$		US$
	(Unaudited)		(Audited)
ASSETS
Current assets:
Cash and cash equivalents		28,749,480		8,111,514
Trade receivables, net		10,817,824		23,203,410
Due from related parties		-		130,199
Inventory, net		3,573,349		3,024,016
Deposits		1,473,796		-
Prepayments		-		89,281
Other receivables, net		144,011		102,613
Total current assets		44,758,460		34,661,033

Property and equipment, net		2,090,592		2,352,163

Deposits		18,695,870		16,137,000

Total assets		65,544,922		53,150,196

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Current liabilities:
Accounts payable		256,993		369,329
Value added tax payable		471,282		1,186,642
Accrued employee benefits		1,422,006		1,136,267
Warrant liability		342,770		-
Total current liabilities		2,493,051		2,692,238

Commitments and Contingencies

Shareholders’ equity
Preferred stock (no par value, 1,000,000 shares authorized; none issued and outstanding as of July 31, 2010 and October 31, 2009)		-		-
Common stock ($0.001 par value, 100,000,000 shares authorized; 37,239,536 issued and outstanding as of July 31, 2010 and October 31, 2009)		37,240		37,240
Additional paid-in capital		7,651,460		7,596,525
Common stock warrants		496,732		496,732
Reserves		3,372,697		3,372,697
Accumulated other comprehensive income		3,669,590		3,367,659
Retained earnings		47,824,152		35,587,105
Total shareholders’ equity		63,051,871		50,457,958

Total liabilities and shareholders’ equity		65,544,922		53,150,196

	Three months ended July 31,						Nine months ended July 31,
	2010			2009			2010			2009
	US$			US$			US$			US$
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

Sales, net		9,263,892			6,442,197			38,489,012			28,915,072

Cost of goods sold		(4,620,568	)		(2,942,649	)		(18,151,062	)		(13,825,692	)

Gross profit		4,643,324			3,499,548			20,337,950			15,089,380

Operating and administrative expenses:
Sales and marketing		1,284,990			1,109,540			3,689,290			2,534,865
General and administrative		395,131			499,949			2,208,965			1,712,342
Research and development		1,528,933			1,227,411			2,251,854			1,833,391
Total operating expenses		3,209,054			2,836,900			8,150,109			6,080,598

Income from operations		1,434,270			662,648			12,187,841			9,008,782

Other income:
Interest income		22,039			12,054			49,206			31,204
Income from operations before income tax expenses		1,456,309			674,702			12,237,047			9,039,986

Income tax expenses		-			-			-			-
Net income		1,456,309			674,702			12,237,047			9,039,986

Other comprehensive income:
Cumulative currency translation adjustments		461,820			(93,739	)		301,931			(79,568	)

Total comprehensive income		1,918,129			580,963			12,538,978			8,960,418

Earnings per common stock- Basic		0.04			0.02			0.33			0.26
Earnings per common stock - Diluted		0.04			0.02			0.32			0.26

Weighted average common stock outstanding
Basic		37,239,536			36,796,990			37,239,536			35,096,680
Diluted		37,901,089			36,796,990			37,793,370			35,096,680

	For the nine months ended July 31,
	2010			2009
	US$			US$
	(Unaudited)			(Unaudited)
Cash flows from operating activities:
Net income		12,237,047			9,039,986
Adjustments to reconcile net income to operating activities:
Depreciation of property and equipment		261,572			265,559
Warrants issued for services		342,770			-
Share compensation		42,759			-

Changes in assets and liabilities:
Decrease (increase) in trade receivables		12,385,586			(5,868,520	)
Decrease (increase) in due from related parties		130,199			(321,010	)
Decrease (increase) in inventory, net		(549,333	)		43,425
Decrease (increase) in prepayments and in other receivables		(1,425,913	)		77,805
Decrease in accounts payable		(112,336	)		(93,249	)
Decrease in value added tax payable		(715,360	)		(270,065	)
Increase in accrued employee benefits		285,739			281,611
Decrease in other payables		-			(96,754	)
Net cash provided by operating activities		22,882,730			3,058,788

Cash flows from investing activities:
Purchase of property and equipment		-			(16,183	)
Deposits for office properties		(2,558,870	)		-
Net cash used in investing activities		(2,558,870	)		(16,183	)

Effect of exchange rate changes on cash		314,106			(22,551	)

Net increase in cash and cash equivalents		20,637,966			3,042,605
Cash and cash equivalents, beginning of year		8,111,514			9,747,693
Cash and cash equivalents, end of year		28,749,480			12,767,747

Supplemental disclosure of cash flow information:
Cash paid during the year for income taxes		-			-
Interest paid during the year		-			-