Shareholder Letter from Chairman of China Sky One Medical (CSKI)

China Sky One Medical, Inc. CSKI today announced the shareholder letter from Mr. Yanqing Liu, the Company's Chairman of Board of Directors, and Chief Executive Officer. The full text of this shareholder letter is as follows: Dear Shareholders, Our company's reputation continues to be tarnished by unfounded allegations of certain self-serving investors, whose viewpoints recently have been rehashed in media outlets, driving our share price down and create panic among our valued shareholders. We regret that our faithful shareholders have suffered loss in the capital market as a result of reckless criticism and attacks. Most of the issues that recently resurfaced in the media were raised some time ago and have already been addressed by management. We have worked closely and diligently with all SEC inquiries and will continue to do so. As you know, despite all attempts, China Sky One Medical is one of China's leading pharmaceutical companies. We manufacture and distribute over 100 products across approximately 30,000 pharmacies and 1,000 hospitals throughout China. We will continue to focus on delivering strong operating performance, which should provide a key source of confidence for our shareholders in the long run. So far, there are not many shareholders who have been visiting the Company, or met with our management team. Without conducting field research or seeing firsthand the dedication of our professionals, we consider the negative challenges have demonstrated little interest in knowing the business. China Sky One Medical operates four pharmaceutical factories and two R&D centers in China. We are well positioned in the country's pharmaceutical industry, with strong R&D capabilities and expanding marketing and branding strategies. The Company has a world-class product pipeline, which represents huge business potential. Based on China Sky One's fundamentals, the management is optimistic for a brighter future. In the Company's history, our executive directors have never sold a single share of China Sky One Medical. Despite all the accusations, we will keep focusing on business development and continue to focus on managing our business to create long term shareholder value. We also intend to continue to update investors regularly through press releases as we reach any key milestones in 2011, including research and development progress, as well as new business advances. We highly value smooth and transparent communication with our investors. Management is now busy working on annual auditing and reporting for 2010. As soon as practical, we intend to update investors on our 2010 performance and our financial guidance for 2011. To provide foreign investors a better opportunity to understand the real China Sky One Medical, especially at this critical time, we want to extend a sincere open invitation to our current shareholders, potential investors, and different opinion holders to visit our headquarters and pharmacies in China. We will show you how we manage the business from manufacturing to distributing. We are willing to cover your travel expenses in China. "Seeing is the base of believing." China Sky One Medical truly welcomes investors and media to come visiting us and understand how we conduct our business with their own eyes!