BSPM - BIOSTAR PHARMACEUTIC

Biostar Pharmaceuticals, Inc. (Biostar), through its wholly owned subsidiary, Shaanxi Biostar Biotech, Ltd. (Shaanxi Biostar) and its variable interest entity (VIE) Shaanxi Aoxing Pharmaceutical Co., Ltd. (Aoxing Pharmaceutical), develops, manufactures and markets pharmaceutical products for a variety of diseases and conditions in the Peoples Republic of China. The Companys product, Xin Ao Xing Oleanolic Acid Capsule is an over-the- counter (OTC) medicine for chronic hepatitis B. Its product line also includes two other OTC products and two prescription-based pharmaceuticals. In June 2009, the Company launched its Internet-based China Hepatitis Internet Hospital (CHIH).