China Yongxin Pharmaceuticals Plans to Open Eighteen New Stores in 2010 to Further Expand Customer Base and Increase Market Share

CHANGCHUN, China and LOS ANGELES, Jan. 25 /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 plans to open twenty eight new
stores in 2010.

In pursuit of the Company’s new sales strategy, China Yongxin
Pharmaceuticals plans to open twenty eight new retail stores in 2010 to expand
its customer base and increase market share. Among them, ten stores will be
located in Tianjin City with an average operating area of 160 square meters
per store and a local customer population of 20,000. The Company plans to open
stores at the rate of two per month from March through November 2010. These
stores, considered together, are projected to achieve an average annualized
revenue of $466,181.

Eight new stores will be opened in Changchun City, from March to September
2010, each with an operating area of 142.5 square meters. These new stores
offer products and services to a local customer population of 15,000 each, and
these stores, considered together, are expected to achieve an average
annualized revenue of $371,720.

Ten new stores will be opened in Baishan City with an average operating
area of 80 square meters per store. Reaching out to an average customer
population of 5,000, these stores, considered together, are expected to bring
an average annualized revenue stream of $193,586 to the Company.

If successfully opened, the 28 new stores together with the Company’s
existing stores will make Yongxin one of the top 3 drug retailers in the Jilin
Province pharmaceutical retail market in terms of store presence. Already
ranked as the No. 1 pharmaceutical distributor in the Jilin Province by
capacity, the Company’s market share is expected to substantially increase in
the Northeast China area.

Already benefiting from an expanded product portfolio including 98% of the
items listed on the recently issued Essential Drug List (EDL) in China and its
increased marketing campaign activities, Yongxin believes these new stores
will continue to contribute to revenue in the Company’s retail drug operations
in 2010 and beyond. In the year 2009, retail drug revenue increased by
approximately 30% over the year 2008, along with an increase in gross profit
of 28%.

If the Company manages to boost market share in the Jilin Province, Mr.

Yongxin Liu, Chairman and Chief Executive Officer of China Yongxin, commented,
“government support for our company will be further enhanced, especially
following the implementation of China’s $126 billion health care reform plan
that focuses 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 significantly
broader customer base of our chain drugstores, our extensive product portfolio,
and committed management team, bode well for the long term growth of our
company.”

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.