Biostar Pharmaceuticals, Inc. Begins Assembly of New Production Line

XIANYANG, China, May 25 /PRNewswire-Asia-FirstCall/ — Biostar
Pharmaceuticals, Inc. (Nasdaq: BSPM) (“Biostar” or “the Company”), the
Xianyang-based manufacturer of a leading over-the-counter Hepatitis B medicine,
Xin Aoxing Oleanolic Acid Capsule (“Xin Aoxing”), and a variety of
pharmaceutical products and medical nutrients, today announced that it has
commenced assembly of its production line for its proprietary Zushima product.

Biostar completed Chinese Military Drug Administration clinical trials for
Zushima Analgesic Aerosol Spray (“Zushima”) in April through the Chinese No. 4
Military Medical University. Zushima is a traditional Chinese herbal product
used to relieve pain through a topical application to affected areas or closed
wounds. Zushima spray can also be used in the treatment of certain rheumatic
conditions. The product was classified as “Specially Needed Drug” by the
Chinese Military Drug Administration, which will also be available to the
public.

Biostar commenced assembly of its production line for Zushima on April 28,
2010 and intends to complete construction in early August, which will have an
annual capacity of $30.0 million. $0.7 million was budgeted for the production
line equipment used at the Company’s Xianyang-based facilities. Upon
completion, Biostar plans to obtain formal approval from the Military Food and
Drug Administration and a Good Manufacturing Process (GMP) certification,
which the company expects to receive by September 2010. This will enable a
formal launch of Zushima to the Chinese military, civil hospitals and
pharmacies in Shaanxi province.

Biostar is forecasting $2.0 million in initial Zushima sales and a $6.0
million contribution to revenues during 2011, with gross margins of 55.0%.

“We are pleased with the results of these clinical trials and are looking
forward to our next stages of approval for Zushima,” began Chairman and CEO
Rongua Wang of Biostar Pharmaceuticals, Inc. “Our development of Zushima
represents two important strategic goals for Biostar. First, Zushima
highlights our commitment to develop new products to expand our product
portfolio. Second, Zushima paves the way for entrance into the Chinese
military market, which represents a large, new addressable market. We
anticipate receiving our final approvals by September of 2010 and look forward
to a successful launch of Zushima,” Wang concluded.

About Biostar Pharmaceuticals, Inc.

Biostar Pharmaceuticals, Inc., through its wholly-owned subsidiary in
China, develops, manufactures and markets pharmaceutical and medical nutrient
products for a variety of diseases and conditions. The Company’s most popular
product is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter (“OTC”)
medicine for chronic hepatitis B, a disease affecting approximately 10% of the
Chinese population. In addition to its hepatitis product, Biostar manufactures
two broad-based OTC products, two prescription-based pharmaceuticals and
thirteen nutrients. The Company has adopted international standards and is in
the process of applying for two patents.

Safe Harbor

Certain statements in this release concerning our future growth prospects
are forward-looking statements, within the meaning of Section 27A of the U.S.
Securities Act of 1933, as amended, and Section 21E of the U.S. Securities
Exchange Act of 1934, as amended, which involve a number of risks and
uncertainties that could cause actual results to differ materially from those
in such forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and uncertainties
regarding the success of our investments, risks and uncertainties regarding
fluctuations in earnings, our ability to sustain our previous levels of
profitability including on account of our ability to manage growth, intense
competition, wage increases in China, our ability to attract and retain highly
skilled professionals, time and cost overruns on fixed-price, fixed-time frame
contracts, client concentration, our ability to successfully complete and
integrate potential acquisitions, withdrawal of governmental fiscal incentives,
political instability and regional conflicts and legal restrictions on raising
capital or acquiring companies outside China. Additional risks that could
affect our future operating results are more fully described in our United
States Securities and Exchange Commission filings including our S-1 dated June
27, 2008 and our 10-K for the year ended December 31, 2009, and other recent
filings. These filings are available at www.sec.gov. We may, from time to time,
make additional written and oral forward-looking statements, including
statements contained in our filings with the Securities and Exchange
Commission and our reports to shareholders. We do not undertake to update any
forward-looking statements that may be made from time to time by or on our
behalf.

    For further information, contact:

     Ms. Elaine Zhao, CFO
     Phone: +1-626-456-2789
     Email: elainezhao@biostarpharmaceuticals.com

     John Mattio
     HC International, Inc.
     Phone: +1-203-616-5144
     Email: john.mattio@hcinternational.net
     Web:   http://www.hcinternational.net

SOURCE Biostar Pharmaceuticals, Inc.