Product Distribution Expansion

It is anticipated that the Company will expand its current domestic Chinese distribution beyond the cities it currently sells in. The corporate marketing goal is to significantly grow the depth and regional coverage of the sales of the Company’s products by up to or over 100 percent per year over the next five years.

Marketing & Distribution Reach

New Distribution Partners

To date the Company has executed 9 new distribution agreements with Shanghai Zhenshan, XinRenYou Medical Healthcare, Zuellig Hong Kong, SinoPharm Guangzhou, Jin Ming Shi Pharma, Wuhan Jianda Commercial, Chengdu Xianhu Commercial and Tianjin Jiashi Commercial. The Company anticipates that these distribution agreements alone could represent up to approximately US$19.5 million in sales for 2005.

The Company also anticipates that we will create at least a total of 11 (including the 9 already mentioned) and as many as 15 various distribution relationships for the sales of our products in the markets of China, Hong Kong, Macau, Taiwan, Thailand and Singapore during 2005. These DISTRIBUTION relationships would give us access to as many as 83 key cities within the region over the next 3 years.

For 2005, we anticipate launching our new product lines into approximately 18 key cities in China. These DISTRIBUTION agreements include all 7 various Sunkist products, Asarone, Elegance and Tong Yang. It is anticipated that our other products, including: Bodyward, Re-Heal, Qiyao, Lifegate and LiComf, will be added to this distribution mix during the second HALF of 2005.

Our product sales launch dates are highly determined by our ability to build adequate levels of inventory. The recently completed financing will immediately help in raising our inventory levels. It is our goal to increase our levels of inventory up to US$11 million by the end of 2005.