Singapore, Dec 19, 2011: China Sky One Medical, a leading fully integrated pharmaceutical company in China has announced that its wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company (TDR), signed an agreement to jointly set up a new company, Harbin Tian Xin Biological Engineering.

Harbin Tian Xin Biological Engineering is being organized to perform the storage of umbilical cord stem cells. It is also to perform the clinical applications of bone marrow stem cells, intercord mesenchymal stem cells and other human stem cells.

"As we have been involved in this area of research for the past several years, we are optimistic as to the potential of the stem cell storage and application sector. We are pleased to attract outside investors to this new venture to strengthen our capability in terms of technology and capital," commented Mr Yan-Qing Liu, Chairman and CEO of China Sky One Medical. "We expect that Harbin Tian Xin Biological Engineering will be formally put into operation in the first quarter of 2012 and new products and services might be introduced into the market as early as year-end 2012," Mr Liu added.

On December, 12, 2011, TDR entered into an agreement with three parties, the No. Four Hospital Associated with Harbin Medical Science University, Harbin Zheng Yuan Construction Group and Mr. Xiao-wei Zhang, pursuant to which they will jointly set up the new company for a total capital commitment of RMB 230.0 million (approximately around $36.3 million). TDR shall invest approximately $14.2 million (RMB 90.0) for an ownership stake of 39 percent.