Biostar Pharmaceuticals, Inc. Signs an $8 Million Agreement to Manufacture and Supply Xijing Military Hospital With 16 New

Biostar Pharmaceuticals, Inc. Signs an $8 Million Agreement to Manufacture and
              Supply Xijing Military Hospital With 16 New Drugs

PR Newswire

XIANYANG, China, Dec. 4, 2012

XIANYANG, China, Dec. 4, 2012 /PRNewswire/ -- Biostar Pharmaceuticals, Inc.
(NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based manufacturer and
marketer of pharmaceutical and health supplement products in China for a
variety of diseases and conditions, today announced that on November 26, 2012,
it signed another one-year agreement valued at approximately $8 million to
manufacture and supply Xijing Military Hospital with 16 new drugs used to
treat a variety of diseases such as pharyngitis, nasopharynx,
gastroenteropathy, nephropathy, asthma, hyperplasia of mammary glands,
dermatosis, gynecological diseases, etc.

The material terms of this agreement are similar to those of the first two
one-year agreements signed with the same hospital in September and October
2012 for $3.6 million and $3.0 million, respectively. With this new
agreement, Biostar will be manufacturing a total of 24 drugs for Xijing
Military Hospital (10 granules, 13 capsules, and one powder drug) with a
combined value of $14.6 million.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman, commented, "We
are pleased to have signed another drug manufacturing contract with Xijing
Military Hospital as we continue to expand our drug portfolio with high
quality products that are manufactured specifically for the needs of this
hospital. The signing of these agreements is a result of our hard work to
quickly complete experimental tests, trial production, and pass manufacturing
technology and quality inspections. These types of contracts have the
potential to generate substantial revenues, have very low sales expenses and a
much shorter sales cycle."

Mr. Wang continued, "These agreements mark the initial step of our strategic
partnership with The Fourth Military Medical University ('FMMU'), one of
China's most prestigious military medical universities and research centers.
As previously announced, we are working to become a strategic partner of FMMU
in the fields of research and product development and also to become a
production base for manufacturing drugs specifically for the needs of China's

About Biostar Pharmaceuticals, Inc.

Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary and
controlled affiliate in China, develops, manufactures and markets
pharmaceutical and health supplement 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. For more
information please visit:

Safe Harbor relating to the Forward-Looking Statements

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 company uses words and phrases such as
"guidance," "forecasted," "projects," "is expected," "remain confident,"
"will" and similar expressions to identify forward-looking statements in this
press release, including forward-looking statements. Undue reliance should not
be placed on forward-looking information. Forward-looking information is based
on current expectations, estimates and projections that involve a number of
risks, which could cause actual results to vary and in some instances to
differ materially from those anticipated by Biostar and described in the
forward-looking information contained in this news release. The risks and
uncertainties relating to these statements include, but are not limited to,
risks and uncertainties regarding the Company's ability to complete and
deliver the products in accordance with the terms of the agreement with the
hospital, risks relating to the Company's expectations relating to its future
drug sales, the Company's ability to recover its sales and revenue for the
gel capsule segment of its business, the state of consumer confidence and
market demand or the Company's products, 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 most recent Annual Report on Form 10-K for the year
ended December 31, 2011, and other subsequent filings. These filings are
available at 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 more information contact:
BioStar Pharmaceuticals, Inc.      The Equity Group, Inc.
Zack Pan, CFO Lena Cati
Tel: 405-996-8829 Tel: 212-836-9611
Email:           Email:

SOURCE Biostar Pharmaceuticals, Inc.

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