Exhibit 99.1

        Renhuang Pharmaceuticals Announces Fourth Quarter 2006 Guidance:

         Another record quarter expected due to strong growth in product
                                      sales

    HARBIN, China--(BUSINESS WIRE)--Oct. 30, 2006--Renhuang
Pharmaceuticals, Inc. (or "the Company", Stock symbol: RHGP.OB), a
leading provider of natural health care products in the People's
Republic of China (PRC), today announced guidance for the three months
ending October 31, 2006, which is the fourth quarter of the Company's
Chinese operating subsidiary fiscal year.

    The Company expects to reach a new record for quarterly earnings
during the August to October quarter. The Company estimates that net
income will be US$2.8 to US$3.0 million, compared to US$2.6 million
dollars in the third quarter of 2006. Revenue is expected to be
between US$8.5 and US$9 million.

    Li Shaoming, Chairman of Renhuang Pharmaceuticals, commented, "Our
fourth quarter is shaping up to be another record period for us.
Demand for our primary Siberian Ginseng showed solid growth, and we
were able to continue to gain traction in expanding our distribution
capabilities in our domestic market."

    Renhuang will release its full fourth quarter earnings report no
later than December 15, 2006.

    About Renhuang Pharmaceuticals, Inc.:

    Renhuang Pharmaceuticals is a leading bio-pharmaceutical company
located in Harbin in the Heilongjiang Province in Northeast China.
Renhuang is primarily engaged in the research, production, and sales
of bio-pharmaceutical products in Mainland China. The Company's main
products are Siberian ginseng, shark liver oil and several other
traditional medical products. It is estimated that 70% of China's
natural supply of Siberian Ginseng is currently controlled by the
Company.

    The company also anticipates approval within six to nine months by
State Food and Drug Administration ("SFDA") for up to five of its new
Monoclonal Antibody Reagent Box series products. These products are
60% more reliable than those from its competitors and also adhere to
"Good Manufacturing Practices", or "GMP". Moreover, the company is in
the process of building its own immune system research and development
function. Overall, the company is able to achieve significant cost
savings compared to most of its competitors, who purchase their raw
materials from third parties.

    Over 2000 sales agents are employed in seventy sales centers
across twenty-four districts and cover over 50% of the greater China
area and 80% of its population, including the most populous and
developed Eastern China. The Company employs over 50 people in its R&D
department, a number of which are well recognized and respected
pharmaceutical professors and research scientists from National Navy
Pharmaceutical Research Center, Beijing Ellionbio Research Center and
other well known institutions. State of the art research and
production facilities using the latest technologies are currently used
by the Company's scientists to develop new and innovative areas,
including antiseptic and immune system products and Diagnostic kits.

    Safe Harbor Statement

    This press release contains certain statements that may include
'forward-looking statements' as defined in the Securities Act of 1933,
and the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included herein are 'forward-looking
statements.' Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they do
involve assumptions, risks and uncertainties, and these expectations
may prove to be incorrect. You should not place undue reliance on
these forward-looking statements, which speak only as of the date of
this press release.

    The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in the Company's
periodic reports that are filed with and available from the Securities
and Exchange Commission. All forward-looking statements attributable
to the Company or persons acting on its behalf are expressly qualified
in their entirety by these factors. Other than as required under the
securities laws, the Company does not assume a duty to update these
forward-looking statements.

    CONTACT: Investor and media:
             Tip Fleming
             Christensen
             14 Wall Street, 20th floor
             New York
             917-412-3333
             email: tfleming@christensenir.com
             or
             In China:
             Gina Gao
             Renhuang Pharmaceuticals Inc
             #281, Taiping Street, Daowai Street, Harbin, China
             PC:150050
             0086-451-57620378
             Fax: 0086-451-57606414
             email: gs@renhuang.com