China Sky One Medical Updates Financial Guidance for 2010

HARBIN, China, Sept. 3 /PRNewswire-Asia-FirstCall/ — China Sky One
Medical, Inc. (“China Sky One Medical” or “the Company”) (Nasdaq: CSKI), a
leading fully integrated pharmaceutical company in the People’s Republic of
China (“PRC”), today announced that its fiscal year 2010 revenue and adjusted
net income, excluding the impact of derivative warrant liabilities, are
expected to be lower than its previous financial guidance as a result of the
termination of several major distributor relationships.

Specifically, the Company has lowered its 2010 revenue guidance from a
prior range of $160 million and $164 million to between $128 million and $136
million. The Company also has lowered its 2010 adjusted net income guidance,
excluding the impact of derivative warrant liabilities, from between $40
million and $41 million to between $26 million and $31 million.

Management’s reduced guidance reflects the termination of relationships
with certain private distributors, who after several rounds of discussions,
chose to end their cooperation with the Company after learning that their
business information was disclosed in the Company’s public SEC filings and
would continue to be disclosed in such documents as required by SEC
regulations. This disclosure, these distributors claim, has led to increased
scrutiny of their financial performance by government authorities within China.
While the Company expects to replace these lost distribution arrangements over
time, revenue and net income in the second half of 2010 are expected to be
negatively impacted by the disruption in distribution channels. The Company
expects to incur higher selling and marketing costs during second half 2010 to
develop new distributor relationships.

Separately, the Company announced the resignation of its CFO, Mr. Stanley
Hao, due to health considerations, effective September 01, 2010. Mr. Hao will
retain his position as Company Director and Board Secretary. Mr. Yu-kun Zhang,
the Company’s Principal Financial and Accounting Officer, will continue to
oversee the accounting and finance functions, while the Company actively
searches for a new CFO.

“We are disappointed with the decision by several of our larger
distributors to end their cooperation with China Sky One,” commented Mr.

Yan-Qing Liu, Chairman and CEO of China Sky One Medical. “We expect to recoup
this lost business over time by building new relationships with reputable
provincial and national distributors. In addition, we want to thank Stanley
Hao for his contributions as Chief Financial Officer and look forward to his
continued contributions in a role that will allow him to address his health
issues. We are actively seeking a qualified successor with a strong background
in US GAAP accounting and the capital markets to provide effective leadership
for our finance team and support China Sky One’s future expansion.”

About China Sky One Medical, Inc.

China Sky One Medical, Inc., a Nevada corporation, is a holding company.
The Company engages in the manufacturing, marketing and distribution of
pharmaceutical, medicinal and diagnostic products. Through its wholly-owned
subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company
(“TDR”), Harbin First Bio-Engineering Company Limited (“First”), Heilongjiang
Tianlong Pharmaceutical, Inc. (“Tianlong”) and Peng Lai Jin Chuang
Pharmaceutical Company (“Jin Chuang”) the Company manufactures and distributes
over-the-counter pharmaceutical products, which make up its major revenue
source. For more information, visit http://www.cski.com.cn .

Safe Harbor Statement

Certain of the statements made in the press release constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements can be identified by the use
of forward- looking terminology such as “believe,” “expect,” “may,” “will,”
“should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative
thereof or comparable terminology. Such statements typically involve risks and
uncertainties and may include financial projections or information regarding
the Company’s termination with above mentioned ex-customers and update of
financial guidance for 2010, as well as Mr. Stanley Hao’s resignation as the
Company’s CFO. Actual results could differ materially from the expectations
reflected in such forward-looking statements as a result of a variety of
factors, including the risks associated with the effect of changing economic
conditions in The People’s Republic of China, variations in cash flow,
reliance on collaborative retail partners and on new product development,
variations in new product development, risks associated with rapid
technological change, and the potential of introduced or undetected flaws and
defects in products, and other risk factors detailed in reports filed with the
Securities and Exchange Commission from time to time.

    For more information, please contact:

    China Sky One Medical
     Yan-qing Liu, CEO
     Email: ir@cski.com.cn

    CCG Investor Relations
     Crocker Coulson, President
     Tel:     +1-646-213-1915
     Email:   crocker.coulson@ccgir.com
     Website: http://www.ccgirasia.com

     Mabel Zhang, Vice President
     Tel:   +1-310-954-1353
     Email: mabel.zhang@ccgir.com

SOURCE China Sky One Medical, Inc.