"We are pleased to announce this strategic alliance as it furthers our MoxDuo�IV development objectives and provides access to an important and rapidly growing market," said Dr. John Holaday, Managing Director and Chief Executive Officer, QRxPharma. "By leveraging China Aoxing's technical resources, we are able to cost effectively advance development of MoxDuo�IV. Our team will work closely with China Aoxing to ensure the development program meets both US Food and Drug Administration (FDA) and China State Food and Drug Administration (SFDA) regulatory requirements."

China Aoxing has also licensed the rights to the China market for MoxDuo�IR, an immediate release capsule presently in pivotal Phase 3 studies in the United States. A binding term sheet has been signed by the parties and the transaction is expected to be closed by the end of March 2010.

"We are excited to enter into this strategic alliance with QRxPharma to co-develop two promising drugs for China and ex-China markets," said Zhenjiang Yue, the CEO and Chairman of China Aoxing. "This partnership further solidifies China Aoxing's leading position in the rapidly growing narcotics and pain management market in China. It also bolsters our capability to develop and bring to market innovative, high-value medicines that have the potential to address significant unmet medical needs. We believe that the partnership will generate significant opportunities and benefits for both companies."

In July 2009, QRxPharma announced the initiation of a comparative proof-of-concept study to evaluate the efficacy and safety of MoxDuo�IV versus IV morphine alone for the treatment of moderate to severe post-operative pain in patients following hip replacement surgery. Data from this study, available in 2Q 2010, may serve as a significant predictor of MoxDuo�IV's clinical benefits and provide guidance for the design of clinical trials with China Aoxing which may be used to support any later submission of a New Drug Application (NDA) with the FDA.

MoxDuo�IV is one of three complementary Dual-Opioid� products in development. MoxDuo�IR, an immediate-release oral formulation, is in pivotal Phase 3 trials and clinical studies for a controlled-release oral formulation will be initiated in the near future. Extensive clinical studies have demonstrated QRxPharma's Dual-Opioids� provide as good or better pain relief with significantly fewer side effects, giving doctors and patients more options in the treatment of moderate to severe pain from the hospital to the home.

Forward-Looking Statements from QRxPharma Limited

This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations. Any statement in this release that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. These statements are based on plans, estimates and projections as they are currently available to the management of QRxPharma. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include risks relating to the stage of products under development; uncertainties relating to clinical trials; dependence on third parties; future capital needs; and risks relating to the commercialisation of the Company's proposed products.

Safe Harbor Statement from China Aoxing Pharmaceutical Company, Inc

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended June 30, 2009, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

About QRxPharma

QRxPharma is a clinical-stage specialty pharmaceutical company focused on the development and commercialisation of therapies for pain management and central nervous system (CNS) disorders. Based on a business strategy to expand the clinical utility and commercial value of marketed and/or existing compounds, QRxPharma's product portfolio includes both late and early stage clinical drug candidates with well-defined paths to regulatory approval and sales. The Company intends to directly commercialise its products in the US and seek strategic partnerships for worldwide markets. QRxPharma's lead compound, MoxDuo�IR (Q8003IR), is in Phase 3 clinical development and has successfully completed multiple comparative studies evaluating its efficacy and safety against equianalgesic doses of morphine, oxycodone and Percocet� for the treatment of acute pain. Study results consistently demonstrate MoxDuo�IR's greater overall tolerability, achieving as good or better pain relief with substantially fewer incidences of moderate to severe side effects. The Company's preclinical and clinical pipeline includes other technologies in the fields of pain management, neurodegenerative disease and venomics. For more information: www.QRxPharma.com.

About China Aoxing

China Aoxing is a US incorporated specialty pharmaceutical company with its main operations in China, specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, outside Beijing, China Aoxing has the largest and most advanced manufacturing facility for highly regulated narcotic medicines. Its facility is one of the few GMP facilities licensed for the manufacture of narcotic medicines by the China State Food and Drug Administration (SFDA). It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News). For more information: www.chinapainmed.com.

 
For more information please contact:
QRxPharma Ltd
John Holaday, Ph.D
Managing Director and Chief Executive Officer
Tel: +1 301 908 3086
Email: john.holaday@qrxpharma.com
Chris J Campbell
Chief Financial Officer and Company Secretary
Tel: +61 2 9492 8021
Email:  chris.campbell@qrxpharma.com
China Aoxing Pharmaceutical Company
Investor Relations Contact:
Brian Korb
Vice President
The Troup Group LLC
Tel: +1 646 378 2923
Email: bkorb@troutgroup.com

"Reaching this pivotal milestone is an important event for the development of our Tilidine franchise, and will enable a complete analysis of the trial results and a timely submission of new drug application (NDA) to the China SFDA. We believe that Tilidine has the potential to become a major player in the underserved pain market in China," said Mr. Zhenjiang Yue, CEO and Chairman of China Aoxing. "Also, we are looking forward to reporting the top-line results in the coming weeks."

The Phase III clinical study was a multi-center, randomized, double-blind and active-control study which covers two pivotal trials, (1) a trial of 200 patients with post-operative pain for the indication of acute moderate to severe pain; (2) a trial of 120 patients with cancer pain for the indication of chronic moderate to severe pain. The study was conducted at 9 metropolitan hospitals in China. The primary endpoints used to evaluate the efficacy were the sum of pain score differences, measured by Pain Intensity Difference (PID). The size of the trials per protocol was not powered to achieve statistical significance between the treatment arms versus control arms.

In China it is estimated that there are at least 50 million operation procedures performed in hospital and clinical centers every year, and 50% of these procedures require acute post-operative pain treatment. On the other hand there are estimated to be over 2.2 million newly diagnosed cancer patients every year, and 60% of them are unable to receive necessary pain management under current treatment paradigm. Cancer has become the No. 1 cause and attribute to 20% of adult death in China based on the New England Journal of Medicine.

About Tilidine

Tilidine hydrochloride is an orally-absorbed synthetic narcotic analgesic in 50mg or 100mg dosage strength for relief of acute, moderate to severe pain, and chronic cancer-related pain. It is mainly used in European countries, including Germany, Belgium, Ireland, Italy, Switzerland, and etc. It is not available in China at the moment.

Based on the Annual Report of International Narcotics Control Board in 2008, global consumption reached a record level in 2007 and global Tilidine manufacture also reached a peak of 62.2 tons in 2007, twice the level reported in 2002, or at CAGR of 15% during the last five year period.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News). Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended June 30, 2009, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

 
Contact:
Wei Zhang
Vice President
China Aoxing Pharmaceutical Company, Inc.
Email: chinaaoxing@gmail.com
Telephone: 646 - 367-1747
Website: www.chinapainmed.com

"We are very delighted to welcome Dr. Shao into his new appointment as Chief Financial Officer of the Company," said Zhenjiang Yue, Chairman and CEO of China Aoxing. "We believe Dr. Shao's global vision and expertise in the healthcare industry will enhance our operations and financial capabilities immediately as our company embarks on a new era of growth and international endeavors. He will certainly strengthen our profile as a publicly listed company."

Dr. Shao brings a broad business and financial acumen with over 14 years of extensive financial, accounting, private investment and strategic business development experience across various aspects of the global healthcare industry. Since 2007, Dr. Shao has served as the Company's Vice President of Finance. Prior to joining the Company, Dr. Shao was a Senior Analyst at Mehta Partners and Kamunting Street Capital Management in New York, where he was responsible for a healthcare investment portfolio of over $100 million across North American and European companies. Dr. Shao was a Principal Scientist, leading metabolic disease and oncology projects at Roche Pharmaceuticals, before he started his career on Wall Street.

Dr. Shao earned his MBA in Finance and Accounting from the Stern School of Business, New York University. He earned his Ph.D. in Bioorganic Chemistry from the University of California, San Diego. He is a Chartered Financial Analyst (CFA) and a member of the New York Society of Security Analysts (NYSSA).

Dr. Shao commented, "I am excited to have the opportunity to expand my role at the Company. Our business is making significant progress on every front. I look forward to seeing these endeavors to fruition and believe that China Aoxing will be in an excellent position to benefit from the rapid growth and market dynamics of its pain management therapeutics."

With Dr. Shao's appointment, Ms. Hongyue Hao will step down as the Acting CFO. Ms. Hao will continue to be the Vice General Manager of Financial Operations and Reporting of Hebei Aoxing Pharmaceutical Group Company, Inc., the main operating subsidiary of China Aoxing.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News). Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended June 30, 2009, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

 
Contact:
Wei Zhang
Vice President
China Aoxing Pharmaceutical Company, Inc
Email: chinaaoxing@gmail.com
Telephone: 646 - 367-1747
Website: www.chinapainmed.com

The Phase II clinical study was a 12-week, multi-center, randomized, double-blind and placebo-controlled study to evaluate the safety and efficacy of TJSL capsules among 240 patients with primary dysmenorrheal. Subjects were between 18 and 35 years old enrolled at four leading university teaching hospitals in metropolitan areas of China. Subjects received TJSL capsules or placebos, three times a day for ten days, starting at one week prior to each menstrual cycle or period. The primary endpoints used to evaluate the efficacy were the sum of pain score differences, measured by visual analogue scale ("VAS"), as well as symptom improvement during menstruation over three menstrual cycles. The size of the trials was powered to achieve statistical significance between the treatment arm versus control arm.

"We are very pleased with the results to date and the progress made in TJSL program since we acquired the product last year," stated Zhenjiang Yue, Chairman and the CEO of China Aoxing. "We look forward to announcing the results of this trial and initiating Phase III clinical study in the coming weeks. We believe that TJSL has the potential to become a major player in the treatment of menstrual pain and enables us to serve yet another greatly underserved market segment in pain management."

TJSL is a capsule form of selected herbal medicines. Its mechanism of action deserves further investigation, but appears to be its capability of reversing the effects of endometrial prostaglandin, reducing the frequency and strength of uterine contraction as well as providing pain relief, based on in vivo study.

The prevalence rates of PD among women are from 60 to 90 percent. It is estimated that 64% of women in China purchase menstrual pain drugs on a regular basis. The market size of a healthcare product to address menstrual pain is estimated at $3 billion per year in China.

About Primary Dysmenorrhea ("PD")

Primary dysmenorrhea is defined as recurrent, cramping pain in the lower abdomen occurring just before or during menstruation, in the absence of demonstrable pelvic disease, such as endometriosis. Prevalence rates are as high as 90 percent. Initial presentation of PD typically occurs in adolescence. It is a common cause of absenteeism and reduced quality of life in women. Women with PD have increased production of endometrial prostaglandin, resulting in increased uterine tone and stronger, more frequent uterine contractions.

Pharmacological interventions available in the market include non-steroidal anti-inflammatory drugs (NSAIDs), hormonal contraceptives, levonorgestrel intrauterine contraception and tocolytics.

About TJSL Capsules

TJSL was originated by Professor X. Tian, a well known gynecologist in China. The drug is composed of several herbal medicines optimized based on her 40 years of medical research in treating PD. The drug has been used empirically by over 1,000 patients who suffered from PD. From in vivo studies, the drug was capable of reversing the effects of endometrial prostaglandin, reducing the frequency and strength of uterine contraction as well as providing pain relief.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News). Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2009, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

 
Contact:
Wei Zhang
Vice President
China Aoxing Pharmaceutical Company, Inc.
Email: chinaaoxing@gmail.com
Telephone: 646 - 367-1747
Website: www.chinapainmed.com

"Good Manufacturing Practice" is a body of internationally accepted regulations set forth by drug agencies in many countries. GMP compliance ensures that pharmaceuticals, active ingredients and medical devices are produced and quality-controlled according to state-of-the-art standards. According to the National Medicine Administration Law of the People's Republic of China, all pharmaceutical manufacturers must pass an examination every five years to renew their GMP Certificates.

"We are very pleased to obtain the GMP re-certification of four dosage forms, which is an important milestone in the process of our production facility consolidation," said Zhenjiang Yue, Chairman and the CEO of China Aoxing. "The re-certification will serve as a critical step to alleviate product backlog associated with these dosage forms. In addition, we expect more GMP re-certification of pill and tincture dosage forms at our brand new product facility in the first half of year 2010."

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

 
Contact:
Wei Zhang
China Aoxing Pharmaceutical Company, Inc.
Email: chinaaoxing@gmail.com
Telephone:  646-367-1747
Website : www.chinapainmed.com

First Quarter 2010 Highlights:

�
--  Completed the relocation of LRT manufacturing operation into our main
    campus
--  Continuous improvement of profitability and reduction of cash
    consumption while relocating product manufacturing operation from LRT into
    our main campus
--  Obtained GMP re-certification in capsule, tablet, oral solution dosage
    forms of pharmaceuticals
--  Submitted a new drug application (NDA) to the China SFDA for Codeine
    Phosphate to treat acute moderate to severe cough
--  Obtained the clinical trial license from the China SFDA of
    Tilidine/Naloxone capsules, an abuse resistant opioid drug to treat
    moderate to severe pain
--  Completed a private placement of common stock for gross proceeds of $5
    million
--  Completed the conversion of a $4.8million convertible note to common
    stock
    

Revenues for the first quarter ended September 30, 2009 were $1,446,663, a 60% decrease from the revenues of $3,598,065 realized for the same period of last year. The decrease in revenue was caused by the impact of our relocation of the LRT manufacturing facility in the summer of 2009. The consolidation of the LRT facility with our own necessitated that we obtain GMP re-certification of six formulations at the new facility. This has delayed our fulfillment of certain purchase orders. Our new facility has successfully passed the GMP re-certification on capsule, tablet, granule and oral solution formulations by September 30, 2009. We expect that sales of our products to regain the growth trend after the completion of GMP re-certification of pill and tincture formulations in near future.

General and administrative expenses decreased to $877,484 during first quarter 2010 from $1,192,892 during the same period of last year, or a 26% decrease, reflecting our continuous efforts in cost control.

Our loss from operations decreased to $364,378 during the first quarter 2010 from $573,977 during the same period of last year. The 37% decrease in the loss was primarily due to the improvement of operation efficiency as well as greater control of operational expenditures.

Our net loss for the first quarter 2010 was $2,310,784. This included, however, an expense of $2,142,159 attributable to the increase in the fair value of our outstanding financial derivatives.

Mr. Zhenjiang Yue, Chairman and Chief Executive Officer of China Aoxing, commented, "We are entering an exciting and busy year in 2010. We are pleased with our financial and business results of this quarter. During this quarter we revised our capital structure and improved our financial condition significantly, forming important basis of our future business expansion. We are confident about the prospects for our business in 2010 and will continue advancing the new generation of narcotics and pain medicine into the market place in China."

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

�
          CHINA AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS

                                              September 30,    June 30,
                                                  2009           2009
                                               (Unaudited)
                  ASSETS
CURRENT ASSETS:
  Cash                                        $   6,417,281  $   1,271,922
  Accounts receivable                             1,296,787      1,064,381
  Inventory                                         872,483        712,521
  Deposits with suppliers                           289,339        261,780
  Deferred tax assets                             4,140,298      3,331,045
  Prepaid expenses and sundry current assets        408,121        302,449
                                              -------------  -------------
TOTAL CURRENT ASSETS                             13,424,310      6,944,098
                                              -------------  -------------

LONG - TERM ASSETS
Property and equipment, net of accumulated
 depreciation                                    24,578,597     29,324,362
Other intangible assets                           1,521,608      1,549,497
Goodwill                                         18,943,519     18,926,527
                                              -------------  -------------
TOTAL LONG-TERM ASSETS                           45,043,724     49,800,386
                                              -------------  -------------

TOTAL ASSETS                                  $  58,468,033  $  56,744,484
                                              =============  =============

        LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Short-Term borrowings                       $     292,500  $     292,193
  Accounts payable                                2,814,029      2,816,711
  Deposit payable                                         -      3,871,552
  Current portion of long term debt - other          46,800        144,635
  Current portion of long term debt -
   stockholders                                     111,202      4,494,629
  Loan payable - Bank                             6,100,846      6,094,428
  Accrued expenses and taxes payable and other
   sundry current liabilities                     2,632,869      2,403,185
                                              -------------  -------------
TOTAL CURRENT LIABILITIES                        11,998,245     20,117,333
                                              -------------  -------------

LONG-TERM DEBT-- STOCKHOLDERS                     4,108,523      4,104,201
                                              -------------  -------------
              -- OTHER                            3,382,520      3,491,113
                                              -------------  -------------
CONVERTIBLE DEBENTURES                            1,068,513      1,023,733
                                              -------------  -------------
WARRANT AND DERIVATIVE LIABILITIES                5,511,061      3,368,901
                                              -------------  -------------

Common stock, par value $0.001,
 100,000,000 shares authorized, 91,669,562
 and 82,827,999 shares issued and outstanding
 at September 30, 2009 and June 30, 2009,
 respectively                                        91,670         82,828
Preferred stock, par value $0.001
 300,000 shares authorized 277,018 shares
 issued and outstanding at September 30, 2009
 and June 30, 2009, respectively                        277            277
Additional paid in capital                       49,128,541     39,104,309
Accumulated deficit                             (17,320,012)   (15,009,228)
Other comprehensive income                          498,695        461,017
                                              -------------  -------------
TOTAL STOCKHOLDERS' EQUITY                       32,399,171     24,639,203
                                              -------------  -------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $  58,468,033  $  56,744,484
                                              =============  =============



          CHINA AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
                                (Unaudited)

                                                For the three months ended
                                                      September 30,
                                                    2009          2008

SALES                                           $  1,446,663  $  3,598,065
COST OF SALES                                        450,143     1,937,345
                                                ------------  ------------
GROSS PROFIT                                         996,520     1,660,720
                                                ------------  ------------

COSTS AND EXPENSES:
  Research and development expenses                  113,303       266,329
  General and administrative expenses                877,484     1,192,892
  Selling expenses                                   260,893       631,018
  Depreciation and amortization                      109,217       144,458
                                                ------------  ------------
    TOTAL COSTS AND EXPENSES                       1,360,897     2,234,697
                                                ------------  ------------

LOSS FROM OPERATIONS                                -364,378      -573,977
                                                ------------  ------------

OTHER INCOME (EXPENSE):
  Interest expense                                  (592,085)     (475,494)
  Change in fair value of warrant and derivative
   liabilities                                    (2,142,159)      147,727
  Gain on foreign currency transactions                    -       203,037
  Loss on sale of assets                             (21,416)            -
  Forgiveness of debt                                      -     1,459,751
                                                ------------  ------------
    TOTAL OTHER INCOME (EXPENSE)                  (2,755,659)    1,335,021
                                                ------------  ------------

INCOME (LOSS) BEFORE MINORITY INTEREST AND
 INCOME TAXES                                     (3,120,037)      761,044

Minority interest in (income) losses of
 subsidiary                                                -       (55,232)
                                                ------------  ------------
INCOME (LOSS) BEFORE INCOME TAXES                 (3,120,037)      705,812

Income taxes (credit)                               (809,253)       79,693
                                                ------------  ------------
NET INCOME ( LOSS)                                (2,310,784)      626,119

OTHER COMPREHENSIVE INCOME ( LOSS) :
  Foreign currency translation adjustment             37,678        26,349
                                                ------------  ------------

COMPREHENSIVE INCOME (LOSS)                     $ (2,273,106)      652,468
                                                ============  ============

BASIC AND DILUTED EARNINGS (LOSSES) PER COMMON
 SHARE                                                 (0.03)        0.008
                                                ============  ============
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING     87,411,323    81,205,779
                                                ============  ============



          CHINA AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                For the three months ended
                                                      September 30,
                                                    2009          2008
                                                ------------  ------------
OPERATING ACTIVITIES:
Net income (loss)                               $ (2,310,784) $    626,119
  Adjustments to reconcile net loss to net
   cash used in operating activities:
    Depreciation and amortization                    284,634       311,599
    Deferred tax assets                             (809,253)            -
    Impairment loss on land and buildings             21,416             0
    Forgiveness of debt                                    -    (1,459,751)
    Non-cash interest expense related to
     debentures and warrants                          44,780        81,030
    Stocks issued for services                       202,227             0
    Change in fair value of warrants and
     derivative liability                          2,142,159      (147,727)
    Minority interest                                      -        55,232
  Changes in operating assets and liabilities:
    Accounts receivable                             (241,022)     (267,123)
    Inventories                                     (159,213)      170,019
    Prepaid expenses and sundry current assets       (18,417)     (107,574)
    Accounts payable                                 115,423        56,269
    Accrued expenses, taxes and sundry current
     liabilities                                     485,074        61,415
                                                ------------  ------------
NET CASH USED IN OPERATING ACTIVITIES               (242,975)     (620,492)
                                                ------------  ------------

INVESTING ACTIVITIES:
  Acquisition of property and equipment             (293,018)      (55,975)
  Cash received from sale of assets                  950,626             0
                                                ------------  ------------
NET CASH PROVIDED BY (USED IN) INVESTING
 ACTIVITIES                                          657,608       (55,975)
                                                ------------  ------------

FINANCING ACTIVITIES:
  Other borrowings                                  (210,257)   (1,458,417)
  Loans from stockholders                             (1,121)    1,759,460
  Sale of common stock                             5,000,000             -
                                                ------------  ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES          4,788,622       301,043
                                                ------------  ------------

EFFECT OF EXCHANGE RATE ON CASH                      (57,895)      109,486
                                                ------------  ------------

INCREASE (DECREASE) IN CASH                        5,145,360       265,938
CASH - BEGINNING OF PERIOD                         1,271,922     1,565,213
                                                ------------  ------------
CASH - END OF PERIOD                            $  6,417,281     1,299,275
                                                ============  ============

Supplemental disclosures of cash flow
 information:
  Non-cash financing activities:
    Conversion of 33MM RMB AOB loan and
     accrued interest into common stock            4,830,847             -
                                                ============  ============
    Conversion of convertible debentures
     into common stock                                     -       290,000
                                                ============  ============
    Common stock issued as payment for
     accrued interest                                      -        25,570
                                                ============  ============

 
Contact:
Wei Zhang
China Aoxing Pharmaceutical Company, Inc
Email: chinaaoxing@gmail.com
Telephone: 646 - 367-1747
Website: www.chinapainmed.com

The Company will update the Company business including product portfolio, development pipeline, financial highlights and its long-term growth strategies.

For further details, please contact your institutional sales representative.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

 
Contact:
China Aoxing Pharmaceutical Company, Inc
Email: chinaaoxing@gmail.com
Telephone: 646 - 367-1747
Website: www.chinapainmed.com

For further details, please contact your institutional sales representative.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE: AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

Revenues for our fiscal year ended June 30, 2009 were $8,941,907, representing a 27% increase from revenues of $7,065,015 for our fiscal year ended June 30, 2008. The increase was driven by our increased marketing efforts, improved brand recognition and effective pricing strategy.

Gross profit in the year ended June 30, 2009 increased by $576,213 from gross profit during the year ended June 30, 2008.

Research and development expenses increased from $700,202 in fiscal year 2008 to $722,567 in fiscal year 2009 as we continued advancing our development programs including Oxycodone, Tilidine, Codeine Phosphate, Buprenorphine and other products.

General and administrative expenses decreased from $4,001,282 in fiscal year 2008 to $3,804,296 in fiscal year 2009, as a result of our efforts to control expenditures on both cash and non-cash based items. During the fiscal year 2009, we reduced our staff from 465 employees at June 30, 2008 to our current roster of 360 employees. We also reduced professional fees by 45% on legal, accounting, and other services.

Loss from our operations was $4,003,065 in fiscal year 2009 as compared to the loss of $3,578,966 in fiscal year 2008, an increase in $424,098 or 12%, primarily due to the increase in our bad debt reserve in the amount of $1,461,789 in fiscal year 2009, which offset the savings achieved from the operation improvement.

We incurred interest expenses of $1,919,143 in fiscal year 2009, compared to $2,514,840 in fiscal year 2008, a 24% decrease primarily due to the conversion of our 10% convertible debenture into common stock as of September 30, 2008.

We continue improving our capital structure and financial strength and anticipate that interest expense will continue to decrease in the coming years. The completion of a $5 million private placement of equity in early August 2009 was an important first step in that program. Also in late August 2009, we paid off a convertible term note to American Oriental Bioengineering Inc. ("AOB") in the total amount of $4,830,847, in the form of 3,578,405 shares of restricted common stock. As of October 14, 2009, AOB owns 33,578,405 shares, or approximately 37% of our common stock.

During the fiscal year 2009, we recorded impairment loss in the amount of $2,345,420, primarily attributable to our revaluation of LRT's property and equipment in connection with our consolidation efforts of LRT subsidiary. The impairment loss was offset in part by a one-time gain on forgiveness of debt in the amount of $1,461,299 during the same year.

Net cash outflows from operations during fiscal year ended June 30, 2009 amounted to $642,598, representing 34% improvement compared with net cash outflows from operation of $982,947 in the fiscal year 2008. Our cash flows used in investing activities amounted to $2,227,309 in acquisition of property and equipment in fiscal year 2009 as compared to $17,135,612 in fiscal year 2008. During fiscal year 2008, we paid $12,232,123 and $3.42m respectively to acquire 100% equity ownership of LRT and 35% of equity ownership of Hebei Aoxing Pharmaceutical Group Company, our main operating subsidiary in China.

According to the accounting treatment of embedded derivative instruments required by the US GAAP, the Company recognized other income of approximately $627,183 and $8,547,000 during the years ended June 30, 2009 and 2009 respectively, as a result of marking-to-market the value of warrants and derivative liabilities related to the convertible debentures issued by the Company in earlier periods. In addition, we also recognized income tax credit of $3,281,059 in fiscal year 2009. As a result, the net loss for the fiscal year 2009 was $2,695,050, or $0.03 per fully diluted share, compared to a net income of $3,646,859, or $0.08 per fully diluted share in the prior year.

Mr. Zhenjiang Yue, Chairman and Chief Executive Officer of China Aoxing, commented, "We are very pleased with our 2009 fiscal year financial and business results. We revised our capital structure and improved our financial condition significantly, forming an important basis of our future business expansion. Our clinical development team achieved significant progress toward finishing several clinical trials of narcotic products by June 2009. In addition, we are very optimistic about new product licenses and product launches in the coming year, which would lead us to a new commercialization era in the company history."

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

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          CHINA AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEET

                                                      ----June 30,----
                                                     2009          2008
                             ASSETS
CURRENT ASSETS:
  Cash                                          $  1,271,922  $  1,565,513
  Accounts receivable, net of allowance for
   doubtful accounts of $1,461,091 and $0          1,064,381     2,536,047
  Inventory                                          712,521       848,959
  Deposits with suppliers                            261,780        78,052
  Deferred tax assets                              3,331,045             -
  Prepaid expenses and sundry current assets         302,449       225,156
                                                ------------  ------------
TOTAL CURRENT ASSETS                               6,944,098     5,253,727
                                                ------------  ------------

LONG-TERM ASSETS
Property and equipment, net of accumulated
 depreciation                                     29,324,362    30,331,143
Other intangible assets                            1,549,497     1,635,375
Goodwill                                          18,926,527    18,904,845
                                                ------------  ------------
TOTAL LONG-TERM ASSETS                            49,800,386    50,871,363
                                                ------------  ------------

TOTAL ASSETS                                    $ 56,744,484  $ 56,125,090
                                                ============  ============

                LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Short-Term borrowings                         $    292,193  $    291,800
  Accounts payable                                 2,816,711     3,544,795
  Deposit payable                                  3,871,552             -
  Current portion of long term debt - other          144,635       380,070
  Current portion of long term debt -
   stockholders                                    4,494,629     1,862,868
  Accrued expenses and taxes payable and
   other sundry current liabilities                2,403,185     4,851,314
  Loan payable - Bank                              6,094,428     7,545,239
                                                ------------  ------------
TOTAL CURRENT LIABILITIES                         20,117,333    18,476,086
                                                ------------  ------------

LONG-TERM DEBT -- STOCKHOLDERS                     4,104,201     4,098,687
                                                ------------  ------------
               -- OTHER                            3,491,113     3,127,643
                                                ------------  ------------
CONVERTIBLE DEBENTURES                             1,023,733     1,098,362
                                                ------------  ------------
WARRANT AND DERIVATIVE LIABILITIES                 3,368,901     4,161,678
                                                ------------  ------------
MINORITY INTEREST                                          -        24,598
                                                ------------  ------------

Common stock, par value $0.001,
 100,000,000 shares authorized, 82,827,999 and
 81,089,919 shares issued and outstanding at
 June 30, 2009 and 2008, respectively                 82,828        81,090
Preferred stock, par value $0.001,
 300,000 shares authorized, 277,018 shares
 issued and outstanding at June 30,2009 and
 2008, respectively                                      277           277
Additional paid in capital                        39,104,309    36,749,956
Accumulated deficit                              (15,009,228)  (12,314,178)
Other compensive income                              461,017       620,891
                                                ------------  ------------
TOTAL STOCKHOLDERS' EQUITY                        24,639,203    25,138,036
                                                ------------  ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $ 56,744,484  $ 56,125,090
                                                ============  ============




          CHINA AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

                                                     Year ended June 30,
                                                     2009          2008

SALES                                           $  8,941,907  $  7,065,015
COST OF SALES                                      5,135,661     3,834,982
                                                ------------  ------------
GROSS PROFIT                                       3,806,246     3,230,033
                                                ------------  ------------

COSTS AND EXPENSES:
  Research and development expense                   722,567       700,202
  General and administrative expenses              3,804,296     4,001,282
  Bad Debt expenses                                1,461,789             -
  Selling expenses                                 1,480,118     1,449,909
  Depreciation and amortization                      340,541       657,606
                                                ------------  ------------
    TOTAL COSTS AND EXPENSES                       7,809,311     6,808,999
                                                ------------  ------------

LOSS FROM OPERATIONS                              (4,003,065)   (3,578,966)
                                                ------------  ------------

OTHER INCOME (EXPENSE):
  Interest expense                                (1,919,143)   (2,514,840)
  Change in fair value of warrant and
   derivative liabilities                            627,183     8,547,374
  Gain on foreign currency transactions              203,037       677,365
  Impairment loss                                 (2,345,420)            -
  Forgiveness of debt                              1,461,299             -
                                                ------------  ------------
     TOTAL OTHER INCOME (EXPENSE)                 (1,973,044)    6,709,899
                                                ------------  ------------

INCOME (LOSS) BEFORE MINORITY INTEREST AND
 INCOME TAXES                                     (5,976,109)    3,130,933

Minority interest in (income) losses of
 subsidiary                                                -       515,926
                                                ------------  ------------
INCOME (LOSS) BEFORE INCOME TAXES                 (5,976,109)    3,646,859

Income taxes (credit)                              3,281,059             -
                                                ------------  ------------
NET INCOME (LOSS)                                 (2,695,050)    3,646,859

OTHER COMPREHENSIVE INCOME (LOSS):
  Foreign currency translation adjustment           (159,874)      239,483
                                                ------------  ------------

COMPREHENSIVE INCOME (LOSS)                     $ (2,854,924) $  3,886,342
                                                ============  ============

BASIC AND DILUTED EARNINGS (LOSSES) PER
 COMMON SHARE                                   $      (0.03) $       0.08
                                                ============  ============
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING     82,402,736    49,242,639
                                                ============  ============




          CHINA AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                     Year ended June 30,
                                                     2009          2008

OPERATING ACTIVITIES:
Net income (loss)                               $ (2,695,050) $  3,646,859
Adjustments to reconcile net loss to net cash
 used in operating activities:
  Depreciation and amortization                    1,017,559       730,570
  Deferred tax assets                             (3,331,045)            -
  Impairment loss on land and building             2,345,420             -
  Bad debt                                         1,461,453             -
  Forgiveness of debt                             (1,460,963)            -
  Non-cash interest expense related to
   debentures and warrants                           215,371     1,432,462
  Stocks issued for services and interest          1,000,506     1,695,898
  Change in fair value of warrants and
   derivative liability                             (627,183)   (8,547,374)
  Minority interest                                  (24,598)     (515,927)
Changes in operating assets and liabilities:
  Accounts receivable                                 25,543      (525,085)
  Inventories                                        137,581      (168,807)
  Prepaid expenses and sundry current assets        (272,729)       85,506
  Accounts payable                                (1,240,164)    1,627,658
  Accrued expenses, taxes and sundry current
   liabilities                                     2,805,701      (442,707)
                                                ------------  ------------
NET CASH USED IN OPERATING ACTIVITIES               (642,598)     (980,947)
                                                ------------  ------------

INVESTING ACTIVITIES:
  Acquisition of property and equipment           (2,227,309)   (1,483,489)
  Cash paid for acquisition of subsidiary                  -   (12,232,123)
  Acquisition of minority interest                         -    (3,420,000)
                                                ------------  ------------
NET CASH USED IN INVESTING ACTIVITIES             (2,227,309)  (17,135,612)
                                                ------------  ------------

FINANCING ACTIVITIES:
  Repayment of bank borrowings                             -    (4,895,950)
  Other borrowings                                   123,316     2,837,959
  Loans from stockholders                          2,629,655     2,953,664
  Sale of convertible debentures                           -       425,000
  Sale of common stock                                     -    17,100,000
                                                ------------  ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES          2,752,971    18,420,673
                                                ------------  ------------

EFFECT OF EXCHANGE RATE ON CASH                     (178,655)     (247,728)
                                                ------------  ------------

INCREASE (DECREASE) IN CASH                         (295,591)       56,386
CASH - BEGINNING OF PERIOD                         1,567,513     1,511,127
                                                ------------  ------------
CASH - END OF PERIOD                            $  1,271,922     1,567,513
                                                ============  ============

Supplemental disclosures of cash flow
 information:
  Non-cash financing activities:
    Conversion of convertible debentures into
     common stock                                    290,000             -
                                                ============  ============

 
Contact:
Wei Zhang
China Aoxing Pharmaceutical Company, Inc
Email: chinaaoxing@gmail.com
Telephone: 646 - 367-1747
Website: www.chinapainmed.com

For further details, please contact your institutional sales representative.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE: AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

CONTACT: Wei Zhang, China Aoxing Pharmaceutical Company, Inc., Email: chinaaoxing@gmail.com, Telephone: (646) 367-1747, Website: www.chinapainmed.com

The Company will update the Company business including product portfolio, development pipeline, financial highlights and its long-term growth strategies.

For further details, please contact your institutional sales representative.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTCBB: CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE: AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

China Aoxing, along with thirteen other companies across several industry sectors, became the recipient of the award jointly by the Development and Reform Commission of Shijiazhuang City, Finance Bureau of Shijiazhuang City, and Taxation Bureau of Shijiazhuang City. The selection criteria were based on demonstrated systemic excellence and competitiveness in product quality, technology, environmental protection as well as technical credential of management leadership. The government will provide financial support and business enhancement to the recipients on an annual basis.

"The Center of Excellence Award celebrates the product quality and technology management which is part of the fabric of our business, and we are much honored to receive this recognition with the other two distinguished pharmaceutical companies given the fact that there are over a hundred well-established pharmaceutical companies under the consideration of our city government. This award exemplifies our product quality, innovation culture and highest values and standard embraced within our company. We will continue focusing on quality management and technological competitiveness, and creating greater value for investors," commented by Mr. Zhenjiang Yue, the Chairman and CEO of China Aoxing.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

 
Contact:
Wei Zhang
China Aoxing Pharmaceutical Company, Inc.
Email: chinaaoxing@gmail.com
Telephone: 646-367-1747
Website: www.chinapainmed.com

Tilidine/Naloxone Capsules were developed with China Aoxing's proprietary technology, which combines Tilidine, an effective opioid agonist, with Naloxone, an opioid antagonist, to address moderate to severe pain, such as cancer pain and post-operative pains. Based on clinical trials in Europe, when Tilidine/Naloxone Capsules were taken as directed, pain relief was provided and Naloxone passed through the body without observed clinical effect. If the Capsules is crushed or dissolved in alcohol, which are common approaches abusers use to tamper with an opioid product in order to gain euphoria, both Tilidine and the Naloxone are released, and the euphoric effect of Tilidine was significantly reduced.

"Today's announcement speaks to our unique capability to commercialize narcotic pharmaceutical products in the Chinese market," stated Zhenjiang Yue, Chairman and CEO of China Aoxing. "CTA acceptance is one key step toward reaching marketability. To the best of our knowledge, we could be the first pharmaceutical company to bring Tilidine/Naloxone Capsules to China. This is a great example of our ability to target under-penetrated areas with drugs that improve the overall health of the population. We remain excited about the growth prospects for abuse resistant painkiller in China, which just becomes a new therapeutic paradigm in developed countries. We intend to continue to bring high value, niche-focused prescription drugs, with rigor and prudence, to the growing Chinese healthcare market."

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

 
Contact:
Wei Zhang
China Aoxing Pharmaceutical Company, Inc.
Email: chinaaoxing@gmail.com
Telephone: 646-367-1747
Website: www.chinapainmed.com

Under the regulation of the China SFDA, this drug is designated as a Class III New Medicine, or the first drug to be launched in China while already selling in other regulated territories. As a result, the product is expected to receive at least three-year market exclusivity protection after marketing clearance by the China SFDA. In June 2009, China Aoxing announced that it had completed the clinical studies required for an NDA by the China SFDA. Assuming timely regulatory approval, the company expects to launch this product in China in 2010. China Aoxing believes that this product will give physicians a more effective option to the conventional drugs for the treatment of acute moderate to severe cough in China.

"This is a major achievement of our company. We believe that this drug will address a growing and presently unserved need in the marketplace, and we are very hopeful that the SFDA will find our submission acceptable for final production approval. We believe that we have adhered to the requirements we agreed upon with the SFDA at our pre-NDA meeting. We are also very pleased with the tremendous team effort, great planning and execution by our own staff," said Zhenjiang Yue, the Chairman and the CEO of China Aoxing.

The prevalence rate of cough condition is approximately at 15% in China. It is estimated that over 50 million Chinese patients are seeking cough treatment, mainly caused by respiratory disorders. The market size of pharmaceutical product to address cough condition is estimated approximately $2 billion per year with an annual growth rate of over 10% in China.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward-looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

 
Contact:
Wei Zhang
China Aoxing Pharmaceutical Company, Inc.
Email: chinaaoxing@gmail.com
Telephone: 646 - 367-1747
Website: www.chinapainmed.com

"Good Manufacturing Practice" is a body of internationally accepted regulations set forth by drug agencies at many countries. GMP compliance ensures that pharmaceuticals, active ingredients and medical devices are produced and quality-controlled according to state-of-the-art standards. According to the National Medicine Administration Law of the People's Republic of China, all pharmaceutical manufacturers must pass an examination every five years to renew their GMP Certificates.

"GMP compliance is the gold standard in quality assurance in the life science industry. We are happy to obtain the renewal of the GMP certificate for capsule products," said Juan Yue Han, Chairman and the CEO of China Aoxing. "This provides the foundation for the further development of China Aoxing. We are well positioned to manufacture pharmaceutical products in capsule dosage form to address significantly unmet medical needs in the areas of cancer pain, acute and chronic pain, as well as other neurological disorders."

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC.BB:CAXG - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

Contact:
Contact:Wei ZhangChina Aoxing Pharmaceutical Company, Inc.
Email: chinaaoxing@gmail.com
Telephone: 646-367-1747
Website: www.chinapainmed.com

NEW YORK, NY--(MARKET WIRE)--May 14, 2009 -- China Aoxing Pharmaceutical Company, Inc. (OTC BB:CAXG.OB - News) ("China Aoxing"), a pharmaceutical company specializing in research, development, manufacturing and marketing of narcotic and pain-management products, today announced that it has acquired all rights to TJSL, a novel drug at Phase II development stage to treat primary dysmenorrhea ("PD"), or menstrual pain, in adult women.

The prevalence rates of PD among women are from 60 to 90 percent. It is estimated that 64% of women in China purchase menstrual pain drugs on regular basis. The market size of healthcare product to address menstrual pain is estimated at $3 billion per year in China.

TJSL is a capsule form of selected herbal medicines at Phase II clinical development under the protocol approved by the China State Food and Drug Administration ("SFDA"). The mechanism of action of the drug deserves further investigation, but appears to be its capability of reversing the effects of endometrial prostaglandin, reducing the frequency and strength of uterine contraction as well as providing pain relief, based on in vivo study.

The ongoing Phase II clinical study is a multi-center, randomized, double-blind and placebo-controlled trial of over 200 female patients under three month oral therapy at four academic hospitals in China. The endpoint of the studies is the drug's efficacy and safety, including improvement of abdominal pain during menstruation, measured by visual analogue scale ("VAS"). The study has progressed well and already moved into post-treatment observation stage for its enrolled patients between 18 and 35 years old. The Phase II clinical study is expected to be completed in second half of 2009.

"China Aoxing has made the strategic decision to expand our commitment within the field of pain management," stated Juan Yue Han, Chairman and the CEO of China Aoxing. "The acquisition of TJSL product significantly enhances our profile within the women health community while enabling us to serve yet another greatly underserved market segment in pain management."

"Based on the progress and results to date, TJSL appears to be very promising for routine treatment of PD. A large body of evidence has indicated the drug's efficacy and safety empirically collected from the treatment of over 800 patients who suffered from PD. We look forward to additional supporting data from the ongoing trial with over 200 patients, which we believe to be the most comprehensive and robust Phase II study for PD indication in China," commented Ms. Liying Yang, the Vice President of Research & Development in China Aoxing.

About Primary Dysmenorrhea ("PD")

Primary dysmenorrhea is defined as recurrent, cramping pain in the lower abdomen occurring just before or during menstruation, in the absence of demonstrable pelvic disease, such as endometriosis. Prevalence rates are as high as 90 percent. Initial presentation of PD typically occurs in adolescence. It is a common cause of absenteeism and reduced quality of life in women. Women with PD have increased production of endometrial prostaglandin, resulting in increased uterine tone and stronger, more frequent uterine contractions.

Pharmacological interventions available in the market include non-steroidal anti-inflammatory drugs (NSAIDs), hormomal contraceptives, levonorgestrel intrauterine contraception and tocolytics.

About TJSL Capsules

TJSL was originated by Professor X. Tian, a well-known gynecologist in China. The drug is composed of several herbal medicines optimized based on her 40 years of medical research in treating PD. The drug has been used empirically by over 800 patients who suffered from PD. From in vivo studies, the drug was capable of reversing the effects of endometrial prostaglandin, reducing the frequency and strength of uterine contraction as well as providing pain relief.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC BB:CAXG.OB - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

Contact:

     Contact:
      
     Wei Zhang
     Investor Relations
     China Aoxing Pharmaceutical Company, Inc
     Email: chinaaoxing@gmail.com
     Telephone: 646 - 512 - 5662

NEW YORK, NY--(MARKET WIRE)--May 8, 2009 -- China Aoxing Pharmaceutical Company, Inc. (OTC BB:CAXG.OB - News) ("China Aoxing" or the "Company"), a pharmaceutical company specializing in research, development, manufacturing and distribution of narcotic and pain-management products, today announced the Company's participation in the following conferences:

 
--  Oppenheimer 3rd Annual China Dragon Call Conference, held May 19-21 at
    300 Madison Avenue in New York City. Management is currently scheduled to
    meet with institutional investors and to present from 11:25 am to 11:55 am
    (EDT) on May 19;

--  JMP 8th Annual Research Conference, held May 18-20, 2009 at the Ritz-
    Carlton in San Francisco. Management is currently scheduled to meet with
    institutional investors and to present at 10:30 am to 11:00 am (Pacific
    Time) on May 20.

For further details, please contact your institutional sales representative.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC BB:CAXG.OB - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. It has a strategic alliance with American Oriental Bioengineering, Inc. (NYSE:AOB - News) to develop and market various narcotic drugs in China. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

Contact: Contact: Wei Zhang Investor Relations China Aoxing Pharmaceutical Company, Inc Email: chinaaoxing@gmail.com Telephone: 646 - 512 - 5662

The presentation will take place between 10:30 to 11:00 AM PDT. The Company will update the Company business including product portfolio, development pipeline, financial highlights and its long-term growth strategies. The management will participate in meetings with analysts and investors throughout the day.

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC BB:CAXG.OB - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

     Contact:
      
     Wei Zhang
     Investor Relations
     China Aoxing Pharmaceutical Company, Inc
     Email: chinaaoxing@gmail.com
     Telephone: 646 - 512 - 5662

"Good Manufacturing Practice" is a body of internationally accepted regulations set forth by drug agencies at many countries. GMP compliance ensures that pharmaceuticals, active ingredients and medical devices are produced and quality-controlled according to state-of-the-art standards.

"GMP compliance is the gold standard in quality assurance in the life science industry. It is a major achievement for us to receive this particular GMP certification in early 2009," said Juan Yue Han, Chairman and the CEO of China Aoxing. "This provides the foundation for the further development of China Aoxing. We are well positioned to manufacture pharmaceutical products in tablet dosage form in our modern production facility, as we are preparing for the launch of several important narcotic drugs in tablet dosage form in the foreseeable future, including Tilidine, Oxycodone, Buprenorphine and others, which provide well established medical benefit in treating cancer pain, moderate to severe pain, or related chronic health problems."

About China Aoxing Pharmaceutical Company, Inc.

China Aoxing Pharmaceutical Company, Inc. (OTC BB:CAXG.OB - News) is a pharmaceutical company located in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, China Aoxing has China's largest and the most advanced manufacturing facility for highly regulated narcotic medicines, addressing a very under-served and fast-growing market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company is working closely with the Chinese government and SFDA to assure the strictly regulated availability to medical professionals of its narcotic drugs and pain medicines throughout China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-KSB for the year ended June 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

     Contact:
      
     Wei Zhang
     Investor Relations
     China Aoxing Pharmaceutical Company, Inc.
     Email: chinaaoxing@gmail.com
     Telephone:  646 - 512 - 5662