Projections

Commented Adam Wasserman, Lotus' Chief Financial Officer: "For the year ended December 31, 2005, Lotus reported net revenues of approximately $17.7 million and net income of $1.8 million. Based on unaudited results for the six months ended June 30, 2006, net revenues reached approximately $15.4 million and net income of $2.8 million. We are impressed by our Company's performance and growth, and look forward to expanding both our domestic and international expansion."

CEO Dr. Liu Zhngyi stated: "We have targeted the acquisition of a Beijing company that is a major drug supplier to 99 percent of the 'Triple A; hospitals in Beijing (the highest grade hospitals in China), and to 90 percent of the 'Double A' hospitals in Beijing. These dominant market positions are valuable to Lotus to market its current drug products as well as reselling new drugs from overseas pharmaceutical companies. If completed, this acquisition could add about $100 million to Lotus's annual revenues.

"We have also targeted a pharmaceutical manufacturing and marketing company in South China. The value of this company is its strong R&D capability. This company had revenues of about $9 million last year, with a 20 percent profit margin. It has developed and owns 30 new drugs approved by SFDA, with very strong market prospects. One of the new drugs, already in the clinical trial stage, is classified as a 'National Class One New Drug' for cardiac vascular diseases. This drug is expected to deliver an effective and cheap alternative to the current costly drugs of the same category.

"We firmly believe our existing operations can realize organic growth of 20 percent per year for the coming years. In addition, through complementary acquisitions, we expect to achieve aggregate yearly revenues in excess of $140 million. With expected profit margins of 12-15 percent, after planned acquisitions, Lotus would be on the fast track to leverage the synergy inherent in our enhanced operations. Achieving these objectives should place Lotus amongst the top 100 pharmaceutical companies in China," Dr. Liu concluded.

Safe Harbor Statement Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.