NEW YORK Aug. 19 /PRNewswire-FirstCall/ -- Shanghai Yutong Pharma, Inc. (OTC:SYUP) a producer of commercialized Chinese herbal medicines and biological pharmaceuticals reported financial results for the period ending June 30th, 2005. Fiscal First and Second Quarter 2005 Results For the 6 month period ending June 30th, 2005, the company reported Gross Revenues of $290,674 which represents a decrease from prior year results of $426,839. The decrease in revenues was due to the company dropping less profitable business lines and exchange rate fluctuations. SYUP's operating expenses increased 5% in the 6 month period to $379,567 from $362,000 in the first half of 2004. This increase in expenses were due to plant improvement as well as costs due to being public. Assets for the 1st and 2nd quarter period improved from $4,983,602 to $5,017,493 representing a 1% increase. The increase in assets came from further purchase of material processing equipment and general capital expenditure. Management Review and Outlook Mr. Lu Jiang'an stated, "The fiscal first 6 months of this year fail to reflect some of the milestones we have achieved. We are proud to be listed in the United States which will offer capital markets to us that were previously unavailable. Expenses were a bit higher, but an increase in expenses was necessary for us to maintain our competitive edge. Out of the 6000 manufacturing facilities in China, we are part of only a handful of biological facilities to be GNP approved. We are also one of the few manufacturers to be able to offer a delivery system called 'drop-pill'." Jiang'an added, "We have fully developed our 90,000 square foot GNP manufacturing facility and which will be on-line shortly. For the past 2 years we have been licensing our products to other manufacturers, and now we will be able to do them all in house as well as act as a contract manufacturer to companies that demand the highest quality of production. Foreigners may not be familiar with the "Shanghai halo", but it is true that consumers view Shanghai products to be superior to products coming from other provinces." About Shanghai Yutong Pharma Shanghai Yutong Pharma, Inc. (SYUP.PK) through its subsidiary Shanghai Yutong Pharmaceuticals, Ltd. develops Chinese herbal medicines and biological pharmaceuticals using modern biotechnology and traditional Chinese medical technology. Shanghai Yutong operates from a 90,000 square foot GMP-approved facility and markets over 13 kinds of traditional Chinese medicine. The Company's flagship product, Qilisheng Oral Solution, has been granted a U.S. patent. For Further Information: http://www.shanghaiyutong.com/ Rick Oravec 212-924-3548 DATASOURCE: Shanghai Yutong Pharma, Inc. CONTACT: Rick Oravec of Shanghai Yutong Pharma, Inc., +1-212-924-3548 Web site: http://www.shanghaiyutong.com/

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