China Sky One Medical Provides Update on SAIC Reports

China Sky One Medical, Inc. CSKI today provided an update regarding its progress in amending financial reports previously filed with the State Administration for Industry and Commerce, the PRC governmental agency responsible for issuing and renewing the Company's business license. According to the Company, corrected financial reports for 2007, 2008 and 2009 have been submitted to the local SAIC offices in the jurisdictions in which the Company's subsidiaries are located. The Company believes that the financial information included in the amended reports is consistent with the information included in reports filed by the Company with the U.S. Securities and Exchange Commission. As previously reported, the Company believes that, should the SAIC impose a penalty in connection with amending these financial reports, such penalty will not be material. Liu Yan-qing, the Company's Chief Executive Officer, stated, "We always endeavor to follow all relevant rules and regulations when conducting our business, both in the PRC and abroad. If, on occasion, we become aware that an error was made, we seek advice of professionals to determine the appropriate course of action to correct it, and will continue to do so in the future." Chairman Liu further stated that, although he believes the chances of imposition of a penalty by the SAIC are remote, he will personally pay any penalties and fines imposed by the SAIC in connection with the Company's amendment of the SAIC filings.