China Health Holding, Inc., a development stage company with the goal of becoming a leading developer, manufacturer, marketer and distributor of pharmaceutical drugs and dietary supplements in China and worldwide, announced that it has executed a definitive agreement to acquire a majority interest in Beijing Boran Pharmaceutical Co. Ltd.

Under the agreement, subject to closing conditions including due diligence and approval by both parties, China Health will acquire 65% of the total issued and outstanding capital stock of Beijing Boran, giving it control over the following Beijing Boran assets:

China Health will keep aside for the $800,000 as a security deposit, to be released to Beijing Boran upon the completion of the audit if it is determined that Beijing Boran has met with the targeted audited revenue of Beijing Boran and the targeted audited assets of Beijing Boran.

According to China's Ministry of Health, the TCM industry accounted for more than a quarter of China's overall medical industry which total earnings were US$12 billion in 2005. China exported a record US$830 million worth of traditional medicines to 164 countries and regions in 2005.

In addition to the pending Beijing Boran acquisition, China Health has announced several other pending or completed acquisitions of China-based pharmaceutical companies in recent months. It has executed binding letters of intent to acquire 51% or more of Shaanxi Wanan Pharmaceutical Co. Ltd., Xi'An Chunhui Pharmaceutical and Henan Tiankang Pharmaceutical Co. Ltd. All these letters give it exclusive first refusal rights of acquisition. It has also executed definitive agreements for acquiring 100% of the assets of Xi'An Meichen Pharmaceutical Co. Ltd., 60% of Henan Furen Huaiqingtang Pharmaceutical Co. Ltd. and 100% of Shaanxi Mei Chen Pharmaceutical, Ltd. It has signed a letter of intent with WangJing Hospital and the WangJing Hospital of China Academy of Chinese Medical Sciences, to develop the China International University of Traditional Chinese Medicine and the University Hospital for Traditional Chinese Medical Sciences.

In the next 12 to 24 months, China Health Holding plans to complete further acquisitions and transactions with pharmaceutical companies in China and worldwide, bringing its total assets to approximately US$100 million. Annual gross revenue is projected to approximately reach US$100 million, with an annual net income of US$10-15 million approximately.

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