China Yongxin Pharmaceuticals Opened Three New Stores in 2009 and Expanded Customer Base

CHANGCHUN, China and LOS ANGELES, Jan. 8 /PRNewswire-Asia/ — China
Yongxin Pharmaceuticals, Inc. (OTC Bulletin Board: CYXN; “China Yongxin
Pharmaceuticals” or the “Company”), is a leading manufacturer, distributor and
retailer of Chinese traditional medicines, pharmaceutical products, natural
health products, health food, cosmetics, and medical equipment in Northeastern
China. The Company today announced that it had opened three new stores in
2009.

Reflecting a transition in the Company’s sales strategy, the Company
opened three new retail stores in 2009. Among them, two stores are located in
Tianjin City with an average operating area of 100 square meters per store.
Covering a local customer population of 23,000, each store offers more than
1,500 products and has achieved an average revenue of $429 per store per day.

With an operating area of 140 square meters, the new store in Changchun
City offers more than 3,000 products to a local customer population of 27,000.
It has also realized an average revenue of $429 per day.

With the new stores, the Company now has 96 stores in total in China
(including 22 franchisees), offering a broader product portfolio including 98%
of the items listed on the recently issued Essential Drug List (EDL) in China.
With expanded marketing activities, these new stores contributed to increased
revenues in 2009 from the Company’s retail drug operations, which increased by
approximately 30% over the prior year. These new stores also helped to
improve the Company’s 2009 gross profit which was $15.2 million and gross
margin of 32.6%, representing a significant improvement over the $11.9 million
in gross profit and gross margin of 20.1% for 2008.

Mr. Yongxin Liu, Chairman and Chief Executive Officer of China Yongxin,
commented, “With enhanced government support, specifically the commencement of
China’s $126 billion health care reform plan focused on providing a broader
spectrum of healthcare services and pharmaceutical
products to all Chinese residents, we are confident that our modernized
logistics center and distribution channels, the broad customer base of our
chain drugstores, our extensive product portfolio, and committed management
team will enable us to resume our growth momentum and capitalize on a long-
term, secular growth opportunity.”

About China Yongxin Pharmaceuticals, Inc.

China Yongxin Pharmaceuticals, Inc. was founded in 1993 as the Changchun
Yongxin Dirui Medical Co., Ltd. (Yongxin), is a manufacturer, retailer and
distributor of Chinese traditional medicines, pharmaceutical preparations,
natural health products, health food, cosmetics, and medical equipment in
Northeastern China. Its retail operations began in 2004, and in 2005, it
gained franchise rights from one of the world’s largest drug chains for
China’s Jilin Province. By the end of 2007, the Company had become one of the
fastest growing drug retailers in China through its retail chain of 93 drug
outlets as well as wholesale distribution and manufacturing operations in
Northeastern China. For more information about China Yongxin Pharmaceuticals,
please visit http://www.yongxinchina.com .

Forward Looking Statements

This news release contains certain “forward-looking statements.” Forward-
looking statements are based on current expectations and assumptions and are
inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified, and many of which are beyond the Company’s control.
The forward-looking statements are also identified through the use of words
“believe,” enable,” “may,” “will,” “could,” “intends,” “estimate,”
“anticipate,” “plan,” “predict” “probable,” “potential,” “possible,” “should,”
“continue,” “project”, “expect” and other words of similar meaning. Actual
results could differ materially from these forward-looking statements as a
result of a number of risk factors detailed in the Company’s periodic reports
filed with the SEC. Given these risks and uncertainties, investors are
cautioned not to place undue reliance on such forward-looking statements and
no assurances can be given that such statements will be achieved. China
Yongxin Pharmaceutical Inc. does not assume any duty to publicly update or
revise the material contained herein.

    For more information, please contact:

    For the Company:
     Mr. Sam Liu, COO
     China Yongxin Pharmaceuticals, Inc.
     Tel:   +1-626-581-9098
     Email: info@yongxinchina.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternational.net

SOURCE China Yongxin Pharmaceuticals, Inc.