CHENGDU, China, Nov. 14, 2011 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical Inc. (NYSE Amex: TPI), a pharmaceutical company that specializes in the patented biopharmaceutical, modernized traditional Chinese medicine (TCM), branded generics and active pharmaceutical ingredients (API) announced financial results for the first quarter of Fiscal Year 2012.

First quarter fiscal year 2012 ending September 30, 2011 financial highlights

• 1Q FY2012 revenue decreased 20.5% year over year to $17.5 million from $22.0 million in 1Q FY2011,
• 1Q FY2012 operating income delivered $2.2 million, decreasing 52.2% from $ 4.6 million in 1Q FY2011,
• Net Income decreased 55.9% to $1.5 million from $3.4 million in 1Q FY2011,
• Earnings per share of $0.05 per basic share, or $0.05 per diluted share, compared with $0.12 per basic share, or $0.11 per diluted share in 1Q FY2011,
• Cash and cash equivalents totaled $33.3 million on September 30, 2011,
• Operating cash flow of 1Q FY2012 improves to $3.6 million, 140% gain from 1Q FY2011.

Sales for the quarter ended September 30, 2011 was $17.5 million, a decrease of 20.5% as compared to $22.0 million for the quarter ended September 30, 2010. The sales decrease was mainly due to 1) pricing pressure on our generic pharmaceuticals, 2) the governmental policies to prioritize Essential Drug List (EDL) drug sales that simultaneously reduce both the sales and margin of higher margin generic pharmaceutical sales, and 3) in the prior year, ahead of the current healthcare reform policies being enforced, our downstream customers had significantly built up their inventory which led to a revenue gain of 63.7% for TPI in the quarter ended September 30, 2010.

We have been exploring various strategies to maintain the growth momentum. In addition to the upcoming JCM macrolide API revenue, we emphasize on the TMT distribution revenue that consists of mainly EDL drugs which totaled $4.2 million in this quarter. We also focus on AAA and AA hospitals in major cities of China to develop the high end hospital pharmaceutical market while previously we had targeted large but dispersed markets in rural areas. Our top five products by sales are: GMOL: $2.9 million; APU: $0.93 million; AZI: $0.48 million; XLCC: $0.64 million; and QR: $0.61 million. These products totaled $5.6 million in sales, representing 32% of the quarterly revenue.

Cost of Sales for the three months ended September 30, 2011 was $11.7 million or 66.6% of sales as compared to $11.1 million or 50.4% of sales for the three months ended September 30, 2010. The increase of our cost of sales from the previous year was due to 1) generic pricing pressure that reduces the product margin, 2) distribution business through TMT amounting to $4.2 million with low gross margin, and 3) increase of raw material costs.

Gross Margin for the quarter ended September 30, 2011 was 33.4% as compared to 49.3% for the quarter ended September 30, 2010. Our organic product portfolio delivered 42.1% gross margins, 7.2% lower than 49.3% a year earlier. Given the blend of the TMT lower margin distribution revenue and gross margin reduction under the current pricing trend, we anticipate that our overall gross margin, on a quarterly comparison basis, may trend lower, but on a sequential basis should stabilize or improve depending upon the revenue mix percentages of TMT revenue, upcoming JCM API revenue as compared to the proprietary portfolio's revenue performance.

Operating Expenses were $3.7 million for the quarter ended September 30, 2011, as compared to $6.2 million for the three months ended September 30, 2010. The decrease in operating expenses is mainly associated with the quarterly sales and in the prior year, there was a one-time restricted stock compensation impact of approximately $1.5 million in the quarter ended September 30, 2010.

Net Income was $1.5 million for the quarter ended September 30, 2011, as compared to net income of $3.4 million for the quarter ended September 30, 2010. Net profit margins decreased to 8.6% from 15.5% for the comparable period in 2010. This is the result of sales decrease along with gross margin compression in the quarter.

Diluted earnings per share for the quarter ended September 30, 2011 were $0.05 based on 29.4 million shares, a decrease of 54.4% from the earnings of $0.11 per diluted share for the quarter ended September 30, 2009, based on 29.9 million shares.

Balance Sheet and Cash Flow

As of September 30, 2011, we had cash and cash equivalents of $33.3 million. Net cash generated from operating activities was $3.6 million for the quarter ended September 30, 2011, a gain of 140% over $1.5 million operating cash flow for the quarter ended September 30, 2010. The improvement in operating cash flow was primarily the result of accounts receivable collection and reduced inventory. The Days Sale Outstanding (DSO) is currently at 36 days improving from the previous 46 days. We believe that TPI is adequately funded to meet all of the working capital and capital expenditure needs for FY2011.

Business Development & Outlook

New formulation development for Gingko Mihuan (GMOL)

In November, we announced the formulation expansion program for our flagship product Gingko Mihuan Oral Liquid (GMOL), which is used nationwide in China to treat brain ischemia and infarction, coronary heart diseases, memory dysfunction and other neurological disorders.

For our elderly patients who are also afflicted by gastrointestinal ailments, our current oral liquid formulation shows an efficient absorption rate after intake. Our new capsule formulation of GMOL is more convenient to carry while traveling, adding to its ease of use for those long term treatment users. Furthermore, the cost of production and packaging material prices for liquid formulation has been rising during the recent years and therefore, the capsule formulation will reduce the overall cost of sales by 70% while extending the expiration period to 3 years from the current 2 years for oral liquid form. The new capsule formulation is expected to support the revenue growth of GMOL at approximately 30% year over year and improve the gross margin of GMOL products to 75% or higher. TPI will also apply for patent protection for the new formulation. The R&D cost associated with the program is estimated at $1-2 million.

Jiangchuan Macrolide Project (JCM)

We completed the 240-ton JCM construction in September 2011 for the R&D, manufacturing and sale of API and chemical intermediates of macrolide antibiotics. Currently, JCM is under GMP certification following the internal quality assessment and the environmental safety and impact assessment.

Pre-extraction and formulation plant development at Qionglai Facility (QLF)

In preparation for the new Good Manufacturing Practice (GMP) standards stipulated by the PRC government in early 2011, which requires pharmaceutical companies to be in compliance by 2013, TPI initiated the process of optimizing the manufacturing facilities and production lines. Concurrently, the city of Chengdu has re-designated various industrial parks of nearby counties to be dedicated to particular industries such as automobile, biotechnologies, pharmaceuticals and chemical engineering for individual locations. As a consequence, TPI's manufacturing facility at the Longquan district, east of Chengdu, which is designated for automotive industry, is scheduled to be relocated to Qionglai city, south of Chengdu, which is dedicated to pharmaceutical industry. The Qionglai facility (QLF) is approximately 18 miles from the Company's recently completed Jiangchuan macrolide facility (JCM) which is also located south of Chengdu. The proposed relocation project also includes our TCM pre-extraction plant which is located near the center of Chengdu city, surrounded by rapidly expanding residential area.

The QLF is estimated to be 80 mu or 53,000 m². Both pre-extraction plant and the formulation plant are scheduled to be relocated. The combined QLF plant, designed and constructed according to the latest GMP standards is expected to relieve the current capacity saturation at TPI's facilities. The re-location and construction cost is estimated at $25 million for Phase I which, when completed in 2012, will expand the current capacity by 30%. For Phase II QLF, an additional $10 million may be employed to double the current capacity by 2013.

Fiscal Year 2012 Financial Guidance

Based on the upcoming JCM macrolide API revenue which is expected in the second quarter of fiscal year 2012 and the current pricing pressure on generic pharmaceuticals, together with the evolving government policies amid ongoing healthcare reform, we forecast our fiscal year 2012 revenue of $100 million and net income guidance of $11 million. Our projection is also based on: 1) JCM upcoming revenue for primarily the second half of FY2012; 2) reduced generic portfolio sales but relatively steady revenue from the flagship product portfolio; 3) capacity optimization and relocation of TPI's manufacturing facilities; and 4) steady TMT distribution revenue.

Management will continue to evaluate the Company's business outlook and communicate any changes on a quarterly basis or as when appropriate

Conference Call

Senior management of TPI will host its earnings conference call for the first quarter of fiscal year 2012 ending September 30, 2011 will be held at 8:30 a.m. Eastern Time on Monday, November 14, 2011.

Interested parties may access the call by dialing 1-888-846-5003 (toll-free) or 1-480-629-9856 (International).

The conference ID is 4486385. It is advisable to dial in approximately 5 minutes prior to the start of the call.

A replay will be available by calling 1-877-870-5176 (toll-free) or 1-858-384-5517 (International), from November 14, 2011 at 11:30 am Eastern Time to November 28, 2011 at 11:59 pm Eastern Time. Replay pin number: 4486385.

This call is being web cast by ViaVid Broadcasting and can be accessed at the following link: http://viavid.net/dce.aspx?sid=00008F90

About TPI

Headquartered at Chengdu, China, TPI is a pharmaceutical company that specializes in the development, manufacturing, marketing and sales of patented biopharmaceutical, modernized traditional Chinese medicines, branded generics and other pharmaceuticals. TPI currently manufactures a comprehensive portfolio of 58 products, 24 of which are listed in the highly selective national medicine reimbursement list, 7 are included in the essential drug list of China. TPI's pipeline targets various high incidence healthcare indications.

For more information about TPI, please visit: http://www.tianyinpharma.com.

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

For more information, please contact:

Investors Contact: ir@tpi.asia
Web: http://www.tianyinpharma.com
Tel: +86-28-8551-6696 (Chengdu, China)
+86 134-36-550011 (China)

Address:
23rd Floor Unionsun Yangkuo Plaza
No. 2, Block 3, South Renmin Road
Chengdu, 610041
China

SOURCE Tianyin Pharmaceutical Co., Inc.

Second quarter fiscal year 2011 ending December 31, 2010 financial highlights

• Revenue increased 69.6% year over year to $25.3 million from $14.9 million in 2Q FY2010
• Operating income increased 69.0% year over year to $5.3 million from $3.2 million in 2Q FY2010 with operating margins at 21.0% and 21.1% respectively.
• Net Income was $4.4 million, up 69.2% year over year from $2.6 million in 2Q FY2010, with net margins improved to 17.4% from 17.2% in 2Q FY2010.
• Earnings per share of $0.16 per basic share, or $0.14 per diluted share, up from $0.10 per basic share, or $0.08 per diluted share a year earlier, a gain of 52.5% and 70.9% respectively.
• Cash and cash equivalents totaled $31.2 million on December 31, 2010 or $1.11 per basic share in cash.
• Sichuan Jiangchuan Macrolide Facility ("JCM") construction completed.

Second quarter fiscal year 2011 ending December 31, 2010 Results

Sales for the quarter ended December 31, 2010 was $25.3 million, up 69.6% as compared to $14.9 million for the quarter ended December 31, 2009. The channel expansion and market penetration continue to be the major drivers for the revenue growth. Our current hospital coverage reached 880 hospitals up from 850 hospitals from the beginning of FY2011.

Revenues from the top selling products are listed as follows,

• Gingko Mihuan Oral Liquid (GMOL): $5.4 million, prescription patented proprietary medicine for stroke and other cardiovascular conditions, nationally reimbursed;
• Apu Shuangxin Benorylate Granules (APU): $1.8 million, flagship OTC original granular formulation for inflammation and rheumatism;
• Azithromycin Tablets (AZI): $1.0 million, branded Essential Drug Listed highly effective broad spectrum antiobiotic;
• Xuelian Chongcao Oral Liquid (XLCC): $1.1 million, proprietary TCM product for immunity and sexual function enhancement;
• Qingre Jiedu Oral Liquid (QR): $0.8 million, modernized TCM legacy product for viral infections such as H1N1 influenza.

These products totaled $10.1 million in sales, representing 40.0% of the quarterly revenue.

Cost of Sales for the quarter ended December 31, 2010 were $14.0 million or 55.3% of sales as compared to $7.2 million or 48.3% of the sales of the quarter ended December 31, 2009.

Gross Margin for the quarter ended December 31, 2010 was 44.7% as compared to 51.9% for the quarter ended December 31, 2009. The gross margins were attributable to the addition of revenues from Tianyin Medicine Trading (TMT), the distribution arm of TPI, in the current year. TMT related gross margins averages approximately 15.0%, while in this quarter, our organic portfolio delivered approximately 55.0% gross margins, an increase of 7.1%, over the 51.9% gross margins recognized for the quarter ended December 31, 2009.

Operating Expenses for the quarter ended December 31, 2010 were $6.0 million, compared with $4.6 million for the quarter ended December 31, 2009. The increase was due to continuing sales expansion-related sales payroll and marketing expenses and the remaining approximately $0.5 million financial costs from the previous restricted stock compensation of 614,500 shares on July 15, 2010 to 55 key employees of TPI for their significant contribution during the fiscal year 2009 and the fiscal year 2010.

Net Income was $4.4 million for the quarter ended December 31, 2010, as compared to net income of $2.6 million for the quarter ended December 31, 2009, a net increase of $1.8 million or 69.2% year over year. Net profit margins for the quarter ended December 31, 2010 rose to 17.4% from 17.2% for the quarter ended December 31, 2009 as the leverage in the TPI's business operation further drives the revenue while keeping the operating expenses in-line with the sales expansion.

Diluted earnings per share for the three months ended December 31, 2010 were $0.14, up 70.9% from the earnings of $0.08 per diluted share for the three months ended December 31, 2009, based on 30.5 million and 30.4 million shares, respectively.

Balance Sheet and Cash Flow

As of December 31, 2010, we had working capital totaling $35.7 million, including cash and cash equivalents of $31.2 million or $1.11 per share in cash. Net cash generated from operating activities for the six months ended December 31, 2010 was $10.8 million, compared with $4.9 million for the six months ended December 31, 2009. The significant increase in cash generated from operating activities was mainly driven by the 69.7% increase of the operating income year over year and the net margin improvement to 17.4% from 17.2%. We believe that TPI is adequately funded to meet all of the working capital and capital expenditure needs for FY2011.

Business Development & Outlook

Jiangchuan Macrolide Project – JCM

By the end of the second quarter, we have completed the construction of the Phase I, 240-ton capacity JCM for the development, manufacturing and sales of macrolide antibiotic API. We anticipate meaningful macrolide API revenue contribution from JCM in the current fiscal year ending June 30, 2011.

Tianyin Medicine Trading Distribution Business – TMT

In November 2010, we obtained one-year distribution rights from Jiangsu Lianshui Pharmaceutical to distribute approximately 15 Lianshui-branded generic injection products including cough suppressant, antibiotics, anti-inflammatory medicines and products for other healthcare indications. The estimated annual distribution revenue from TMT is approximately $15 million.

Research and Development

Currently, we have 10 pipeline drugs pending SFDA's approval that include:

• Huangtengsu Tablets, indicated for women's inflammatory conditions and intestinal infectious diseases
• Lifei Tablets, for cough and other respiratory disorders
• Fuyang Granules, for skin irritation and itchiness
• Shuxiong Tablets, for coronary heart diseases and angina pectoris
• Suxiao Zhixie Capsules, for acute diarrhea symptoms
• Shuanghuang Xiaoyan Tablets, for inflammatory conditions and viral infections
• Huoxiang Zhengqi Capsules, for various viral infections
• Jiegu Xujing Ointment, for sports related injuries and pain
• Runing Tablets, for women's mammary gland disorders
• Dengzhan Huasu Tablet, for post-stroke complications, coronary heart diseases and cardiovascular disorders

Fiscal Year 2011 Financial Guidance

We reiterate our fiscal year 2011 revenue guidance of $113.0 million, representing 76.8% year over year growth and net income guidance of $18.0 million, representing 50.0% year over year growth. Our forecast is based on the following growth drivers:

1) Steady growth of our organic product portfolio featured by GMOL, XLCC, AZI, APU, QR;

2) Capacity ramp-up of TPI's newly completed production facility;

3) Antibiotic API revenue from JCM

4) Business development of TMT, TPI's distribution arm for synergistic specialty products;

5) New product market entries from TPI's pipeline;

In our forecast, we assume steady pricings for our products. Net income forecast excludes any non-cash expenses associated with stock compensation plans or stock option expenses.

The ongoing healthcare reform in China provides opportunities for our growth as well as challenges to our pipeline development, market expansion and margin improvements. The management will continue to evaluate TPI's business outlook and communicate any changes on a quarterly basis or as when appropriate.

Conference Call

The senior management will host a conference call to discuss its fiscal year 2011 second quarter financial results at 8:30 a.m. E.T. on Tuesday, February 15, 2011.

Interested parties may access the call by dialing 1-877-941-1427 (toll free) or 1-480-629-9664 (international).

The conference ID is 4410581. It is advisable to dial in approximately 5-10 minutes prior to the start of the call.

A replay will be available from February 15, 2011 till March, 1, 2011 and can be accessed by dialing 1-877-870-5176 (toll free) or 1-858-384-5517 (international). The passcode is 4410581.

This call will be webcast by ViaVid Broadcasting and can be accessed at the following link:
http://www.tianyinpharma....

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

For more information, please contact:

    Fiscal year 2010 ending June 30, 2010 financial highlights

    -- FY2010 revenue exceeds our revenue guidance of $63.0 million for FY2010,
       up 49.0% year over year (yoy) to $63.9 million from $42.9 million for
       FY2009
    -- Gross profit delivered $33.3 million, up 55.6% yoy from $21.4 million
       for FY2009
    -- Gross margins increased to 52.2% from 49.8% for FY2009
    -- Net income rose 51.9% yoy to $12.0 million at 19.0% net margin from
       $7.9 million at 18.0% net margin for FY2009; the net income also
       exceeds our net income guidance of $11.0 million for FY2010
    -- Earnings per share equals to $0.47 per basic share, or $0.40 per
       diluted share, up 25.0% year over year from $0.32 per diluted share in
       FY2009
    -- Cash and cash equivalents were $27.0 million on June 30, 2010 as
       compared to $12.4 million in cash and cash equivalents on June 30, 2009
    -- FY2010 operating cash flow rose 85.5% year over year to $15.4 million
       from $8.3 million in FY2009



    FY2010 results
                                   FY2010            FY2009           YoY
    Sales                     $63.9 million       $42.9 million     +49.0%
    Gross Profit              $33.3 million       $21.4 million     +55.6%
    Operating Income          $14.7 million        $9.7 million     +51.8%
    Net Income                $12.0 million        $7.9 million     +51.9%
    EPS (Diluted)                  $0.40               $0.32        +25.0%
    Diluted Shares             30.1 million        24.8 million     +21.4%

Revenue delivered $63.9 million for the FY2010 up from $42.9 million for FY2009, growing 49.0% yoy, supported by our continuous sales channel expansion and market penetration for our current product portfolio especially the lead products. The results exceeded our targeted $63.0 million FY2010 revenue guidance and validated our growth strategies on sales and marketing, manufacturing capacity expansion along with new pipeline development.

Our lead product revenues are Ginkgo Mihuan Oral Liquid (GMOL): $22.8 million, Apu Shuangxin (Benorylate) Granules (APU) $6.0 million, Xuelian Chongcao Oral Liquid (XLCC): $3.9 million, Azithromycin Dispersible Tablets (AZI): $4.1 million, Qingre Jiedu Oral Liquid (QRE): $3.6 million. The lead product revenues totaled $40.4 million, representing 63.0% of the FY2010 revenue.

Cost of revenue for the FY2010 was $30.6 million or 47.9% of the revenue compared to $21.5 million or 50.2% of the revenue of the FY2009.

Gross profit for the FY2010 was $33.3 million, at 52.2% gross margin, up from 49.8% gross margin for the FY2009. The improvement of the gross margins was the result of our portfolio optimization strategy that focused on higher margin products such as GMOL in the sales mix in addition to enhanced cost control measures that yielded greater efficiencies in manufacturing process.

Operating and R&D expenses were $19.0 million in FY2010 compared to $11.7 million in FY2009. The increase was primarily due to our recent sales and marketing expansion along with the compensation expenses to external service providers. We anticipate these costs may continue to increase but in line with our revenue growth.

Operating income delivered $14.7 million at 23.1% operating margin for the FY2010, up 51.8% yoy from $9.7 million at 22.7% operating margin for the FY2009.

Net income was $12.0 million for FY2010, as compared to the net income of $7.9 million for FY2009, an increase of $4.1 million or 51.9%. The net income gain was primarily the result of the revenue growth (49.0% yoy), improved gross margins (52.2% up from 49.8% in FY2009), and improved operating margins (23.1% up from 22.7% in FY2009).

Diluted earnings per share for FY2010 were $0.40, compared to $0.32 in FY2009, based on 30.1 million and 24.8 million shares for FY2010 and FY2009, respectively.

"For the fiscal year 2010, we have reached and exceeded our revenue and net income targets of $63.0 million and $11.0 million respectively. We thank our 1,365 employees whose diligence and persistence make possible Tianyin's successful operating performance not only for this year but for the past almost a decade of growth. In addition, we exceeded our revenue target of $22.0 million for Gingko Mihuan Oral Liquid through our continuous effort in sales expansion and market penetration," stated Dr. Jiang, Guoqing, Tianyin's Chief Executive Officer. "In addition to our 10 late-stage pipeline drugs pending approval that target various high-incidence medical indications in China, the future lays ahead with our initiative in the growing pharmaceutical raw material space. We expect our Jiangchuan macrolide facility to contribute to our revenue growth in the fiscal year 2011."

Balance sheet and cash flow

As of June 30, 2010, we had cash and cash equivalents of $27.0 million. Net cash generated from operating activities was $15.4 million for FY2010 ended June 30, 2010 as compared to $8.3 million for FY2009.

The strong cash flow was primarily the result of net income growth and further improved accounts receivable $8.2 million 12.8% of the FY2010 revenue versus $5.6 million or 13.1% of the FY2009 revenue.

We believe that Tianyin is adequately funded to meet all of our working capital and capital expenditure needs for the FY 2011.

Net cash used in investing activities for FY2010 and FY2009 totaled $8.8 million and $7.8 million respectively. The increase was mainly due to the construction of Jiangchuan facility and the new drug development.

Business Development & Outlook

Jiangchuan macrolide facility progress update:

Jiangchuan holds a license from China's SFDA to produce macrolide antibiotics such as Azithromycin, one of the world's best-selling antibiotics. Tianyin's goal is to utilize Jiangchuan as the foundation of a broader, longer-term strategy to build a significant presence in the rapidly growing macrolide antibiotics market. Construction of the new production facility at Xinjin Industrial Development Area commenced on January 8, 2010 with Phase I testing production (250 tons capacity) scheduled by the year-end 2010. Tianyin anticipates the revenue contribution from our macrolide facility starting in the fiscal year 2011.

Pipeline update:

We currently have 10 product candidates pending SFDA approval: 1) Huangtengsu Tablets, 2) Lifei Tablets, 3) Fuyang Granules, 4) Shuxiong Tablets, 5) Suxiao Zhixie Capsules, 6) Shuanghuang Xiaoyan Tablets, 7) Huoxiang Zhengqi Capsules, 8) Jiegu Xujing Ointment, 9) Runing Tablets, and 10) Dengzhan Huasu Tablets. We will be updating the progress of the approval process accordingly.

Fiscal year 2011 Guidance

The management reaffirms FY2011 revenue guidance of $113.0 million and net income guidance of $18.0 million, representing 77.0% and 50.0% year over year growth respectively.

Conference Call

Management will host a conference call to discuss the FY2010 results at 9:00 a.m. ET on Thursday, September 30, 2010.

Interested parties may access the call by dialing +1-877-941-4776 (U.S.), or +1-480-629-9762 (International). The conference ID is 4369258. It is advisable to dial in approximately 5-10 minutes prior to the start of the call.

A replay will be available through September 30, 2010 and can be accessed by dialing 1-877-870-5176 (U.S.), or +1-858-384-5517 (International). The passcode is 4369258.

This call is being web cast by ViaVid Broadcasting and can be accessed at the following link:

    For more information, please contact:

     James Jiayuan Tong M.D. Ph.D.
     Chief Financial Officer, Chief Business & Development Officer Director
     Tianyin Pharmaceutical Co., Inc.
     Web:   http://www.tianyinpharma.com
     Email: Dr.Tong@tianyinpharma.com
     Tel:   +86-28-8551-6696 (Chengdu, China)
            +1-949-350-6999 (U.S.)
            +86 134 36 550011 (China)
     Address: 23rd Floor Unionsun Yangkuo Plaza
              No 2 Block 3 South Renmin Road
              Chengdu, 610041
              China



                          Consolidated Balance Sheets

                                                        June 30,    June 30,
                                                          2010        2009
    Assets
    Current assets:
      Cash and cash equivalents                       $27,009,066 $12,352,223
      Accounts receivable, net of allowance
       for doubtful accounts of $421,079 and
       $171,947 at June 30, 2010 and 2009,
       respectively                                     8,185,240   5,620,519
      Inventory                                         3,588,824   3,808,289
      Advance payments                                    382,980   1,188,115
      Loans receivable                                    294,600          --
      Other current assets                                 77,283     683,189
        Total current assets                           39,537,993  23,652,335

    Property and equipment, net                        14,968,822   9,642,526

    Intangibles, net                                   15,232,286  12,037,483

        Total assets                                  $69,739,101 $45,332,344

    Liabilities and stockholders' equity
    Current liabilities:
      Accounts payable and accrued expenses            $1,715,781  $1,392,639
      Accounts payable - construction related           2,248,849          --
      Short-term bank loans                             1,473,000   1,399,075
      VAT taxes payable                                   658,312     458,930
      Income taxes payable                                861,614     490,514
      Other taxes payable                                  19,564      11,890
      Dividends payable                                    72,995     325,417
      Other current liabilities                           429,135     307,934
        Total current liabilities                       7,479,250   4,386,399

        Total liabilities                               7,479,250   4,386,399

    Stockholders' equity:
      Common stock, $0.001 par value, 50,000,000
       shares authorized, 27,326,527 and 17,908,912
       shares issued and outstanding at June 30,
       2010 and 2009, respectively                         27,326      17,909
      Series A convertible preferred stock, $0.001
       par value, 1,360,250 and 7,146,500 shares
       issued and outstanding at June 30, 2010 and
       2009, respectively                                   1,360       7,147
      Additional paid-in capital                       29,623,396  19,694,514
      Statutory reserve                                 3,732,883   2,299,807
      Treasury stock                                     (111,587)   (111,587)
      Retained earnings                                25,687,770  16,486,775
      Accumulated other comprehensive income            2,845,076   2,551,380
        Total stockholders' equity                     61,806,224  40,945,945

    Noncontrolling interest                               453,627          --

        Total equity                                   62,259,851  40,945,945

        Total liabilities and stockholders' equity    $69,739,101 $45,322,344



       Consolidated Statements of Operations and Comprehensive Income

                                                   For the Years Ended June 30,
                                                        2010         2009

    Sales                                           $63,939,684  $42,894,355

    Cost of sales                                    30,594,639   21,516,065

    Gross profit                                     33,345,045   21,378,290

    Operating expenses
      Selling expenses                               12,796,881    7,825,939
      General and administrative expenses             4,949,179    3,491,804
      Research and development                          852,848      343,952
        Total operating expenses                     18,598,908   11,661,695

    Income from operations                           14,746,137    9,716,595

    Other income (expenses):
      Interest (expense) income, net                    (26,649)     261,463
      Impairment loss on intangible assets                   --     (431,344)
      Other expenses                                    (39,518)          --
        Total other expenses                            (65,167)    (169,881)

    Income before provision for income taxes         14,680,970    9,546,714

    Provision for income taxes                        2,626,143    1,639,104

    Net income                                       12,054,827    7,907,610

    Less: Net income attributable to
     noncontrolling interest                             11,677           --

    Net income attributable to Tianyin
     Pharmaceutical Co., Inc.                        12,043,150    7,907,610

    Other comprehensive income
        Foreign currency translation adjustment         293,696       73,506

    Comprehensive income                            $12,336,846   $7,981,116

    Basic earnings per share                              $0.47        $0.41
    Diluted earnings per share                            $0.40        $0.32

    Weighted average number of common shares
     outstanding:
        Basic                                        24,427,329   15,937,411
        Diluted                                      30,081,685   24,805,281



                        Consolidated Statements of Cash Flows

                                                  For the Years Ended June 30,
                                                       2010          2009
    Cash flows from operating activities:
      Net Income                                   $12,043,150    $7,907,610
      Adjustments to reconcile net income to
       net cash provided by (used in)
       operating activities:
        Depreciation and amortization                  953,767       676,605
        Provision for bad debts                        247,131        81,512
        Loss on disposal of fixed assets                39,518            --
        Impairment loss on intangible assets                --       431,344
        Stock-based payments                         1,037,686       249,026
        Noncontrolling interest                         11,677            --
        Changes in current assets and current
         liabilities:
          Accounts receivable                       (2,770,322)   (1,223,282)
          Inventory                                    239,233      (237,975)
          Other current assets                         606,785       (62,705)
          Accounts payable and accrued expenses        315,202        49,867
          Accounts payable - construction related    2,239,231            --
          VAT taxes payable                            222,833       180,701
          Income tax payable                           366,845       147,897
          Other taxes payable                          (19,223)      (28,213)
          Dividend payable                            (252,422)           --
          Other current liabilities                    119,007       164,611
            Total adjustments                        3,356,948       429,388

            Net cash provided by operating
             activities                             15,400,098     8,336,998

    Cash flows from investing activities:
      Loans receivable                                (293,340)           --
      Additions to property and equipment              (59,946)      (58,014)
      Additions to construction in progress         (5,749,230)   (4,179,902)
      Additions to intangible assets-drug           (2,742,729)   (2,417,250)
      Advance payments for intangible assets-drug           --    (1,188,115)

        Net cash used in investing activities       (8,845,245)   (7,843,281)

    Cash flows from financing activities:
      Proceeds from short-term bank loans               66,002            --
      Additional paid-in capital                     8,894,828            --
      Dividend declared and paid                    (1,409,079)      (73,944)
      Treasury stock                                        --      (111,587)
      Proceeds from minority shareholders              440,010            --

        Net cash provided by (used in)
         financing activities                        7,991,761      (185,531)

    Effect of foreign currency translation on cash     110,229       (13,113)

    Net increase in cash and cash equivalents       14,656,843       295,073

    Cash and cash equivalents at beginning of year  12,352,223    12,057,150

    Cash and cash equivalents at end of year       $27,009,066   $12,352,223

    Supplemental schedule of non-cash activities
        Advance payments for intangible assets-drug   $808,152           $--

    Third quarter fiscal year 2010 ending March 31, 2010 financial highlights
    -- Q3 FY2010 revenue increased 60% year over year to $15.9 million, net
       Income Increased 53% to $2.9MM with EPS of $0.11 per share (basic), or
       $0.09 per share (diluted)
    -- Cash and cash equivalents were $23.3 million on March 31st, 2010
    -- Nine month 2010 Cash Flow from Operations Increased 95% year over year
       to $8.6 million
    -- Sichuan Jiangchuan joint venture progress on schedule


    Q3 FY2010 Results
                                   Q3 FY2010        Q3 FY2009      YoY
    Sales                        $15.9 million    $10.1 million    +60%
    Gross Profit                  $8.4 million     $4.9 million    +71%
    Net Income                    $2.9 million     $1.9 million    +53%
    EPS (Diluted)                     $0.09            $0.08       +12%
    Diluted Shares                31.6 million     24.8 million    +27%


    Nine Months FY2010 Results
                                  Nine Months     Nine Months       YoY
                                     FY2010          FY2009
    Sales                       $44.3 million    $29.6 million      +50%
    Gross Profit                $23.2 million    $14.9 million      +55%
    Net Income                   $7.7 million     $5.7 million      +35%
    EPS (Diluted)                    $0.26            $0.23         +13%
    Diluted shares               29.9 million     24.7 million      +21%

Sales for 3Q FY2010 was $15.9 million, up 60.0%, as compared to sales of $9.9 million for 3Q FY2009. Sales for the nine months ended March 31, 2010 were $44.3 million, as compared to total sales of $29.6 million for the nine months ended March 31, 2009, an increase of $14.7 million or 50%. The sales growth was primarily the result of the continuous channel expansion, market penetration and optimized usage of our expanded production facility. We expect greater unit sales as a result of the expansion of both our sales channels and sales force as we continue to implement our sales and marketing strategy.

Revenues from the our top selling products, Ginkgo Mihuan Oral Liquid (GMOL), Apu Shuangxin Oral Liquid (ASOL), Xuelian Chongcao (XLCC) and Azithromycin Dispersible Tablets, were $8.8 million, representing 62.9% of the total quarterly revenue.

Cost of sales for the three months ended March 31, 2010 was $7.5 million or 47% of sales as compared to $5.1 million or 51% of sales for the three months ended March 31, 2009. Cost of sales for the nine months ended March 31, 2010 was $21.0 million or 47.5% of sales as compared to $14.7 million or 50% of sales for the nine months ended March 31, 2009. Our cost of sales consists of the raw material cost, labor, depreciation and amortization of manufacturing equipment and facilities, and other overhead. The improvement of our cost of sales was due to an increase in higher margin products in our sales mix along with enhanced cost control measures that yielded greater efficiencies during the manufacturing process.

Gross margin for the three months ended March 31, 2010 was 53% as compared to 49% for the three months ended March 31, 2009. This was achieved by optimizing portfolio with higher margin products, such as Ginkgo Mihuan Oral Liquid and Apu Shuangxin, while reducing the production of lower margin products, such as Qingrejiedu Oral Liquid and Hugan Tablets.

Operating expenses were $4.8 million for the three months ended March 31, 2010, as compared to $2.6 million for the three months ended March 31, 2009. Operating expenses were $13.7 million for the nine months ended March 31, 2010, as compared to $8.0 million for the nine months ended March 31, 2009, an increase of $5.8 million or 73%. The increase was primarily due to our recent sales and marketing strategy that increased our sales payroll and marketing expenses, along with the increased compensation expenses to external service providers.

Net income was $2.9 million for the three months ended March 31, 2010, as compared to net income of $1.9 million for the three months ended March 31, 2009, an increase of $1.0 million or 53%. Net income was $7.7 million for the nine months ended March 31, 2010, as compared to net income of $5.7 million for the nine months ended March 31, 2009, an increase of $1.9 million or 33%. The net income gain was primarily the result of increase in our revenue along with higher product margins.

Diluted earnings per share for the three months ended March 31, 2010 were $0.09, compared to $0.08 in the same period 2009, based on 31.6 million and 24.8 million shares for 2010 and 2009, respectively.

"Our steadfast efforts in sales expansion, market penetration, new production utilization and portfolio optimization were reflected by another quarter of solid growth in both top and bottom line." stated Dr. Jiang, Guoqing, Tianyin's Chief Executive Officer. "To fuel our future growth, we are continuing the Sichuan Jiangchuan Pharmaceutical Joint Venture (Jiangchuan) to produce macrolide antibiotics, which addresses a large and rapidly growing market in China. Our construction is progressing on schedule and we expect Jiangchuan to contribute to our growth starting fiscal 2011. Our 52 product portfolio featuring patented as well as modernized TCMs and branded generics that target a series of high incidence diseases with addressable billion dollar market. We believe that the favorable health care reform policies, along with growing disposable income, and urbanization of vast agricultural regions remain to be strong growth drivers for China's pharmaceutical market."

Balance Sheet and Cash Flow

As of March 31, 2010, we had cash and cash equivalents of $23.3 million. Net cash generated from operating activities was $8.6 million for the nine months ended March 31, 2010 as compared to $4.4 million for the same period of 2009. The strong cash flow was primarily the result of revenue growth which led to an increased net income. We believe that Tianyin is adequately funded to meet all of our working capital and capital expenditure needs for 2010.

Net cash used in investing activities for the nine months ended March 31, 2010 and 2009 totaled $5.5 million and $5.2 million respectively. The increase was mainly due to our new drugs development and the construction of Jiangchuan production facility.

Business Development & Outlook

Progress update on Sichuan Jiangchuan Pharmaceutical (Jiangchuan):

Since our announcement of the Jiangchuan JV on October 29, 2009 focusing on the production of macrolide antibiotics, such as Azithromycin, one of the world's best-selling antibiotics. Jiangchuan holds a license from China's SFDA to produce macrolide antibiotics and a related business license from the Industry and Commerce Bureau and Tax department. Tianyin owns 77% of the JV and plans to utilize Jiangchuan as the foundation of a broader, longer term strategy to build a significant presence in the rapidly growing macrolide antibiotics market. Construction on a new production facility in Xinjin Industrial Development Area commenced January 8, 2010 with Phase I expected to be operational by August, 2010 and Phase II to be operational by the second half of 2010, with total anticipated capital expenditures of $20 million. Tianyin anticipates the revenue contribution from the initiative starting fiscal 2011.

Fiscal 2010 Guidance

The management reaffirms FY2010 guidance of $63 million and net income of $11 million, representing 48% and 40% year over year growth respectively.

Conference Call

Senior management of Tianyin will host a conference call to discuss its fiscal 2010 third quarter results at 9:00 a.m. ET on Wednesday, May 12, 2010.

Interested parties may access the call by dialing +1-877-941-4776 (U.S.), or +1-480-629-9762 (International). The conference ID is 4297414. It is advisable to dial in approximately 5-10 minutes prior to the start of the call.

A replay will be available through May 26, 2010 and can be accessed by dialing +1-800-406-7325 (U.S.), or +1-303-590-3030 (International), passcode 4297414.

This call is being web cast by ViaVid Broadcasting and can be accessed at ViaVid's website at the following link:

    For more information, please contact:

     James Jiayuan Tong M.D. Ph.D.
     Chief Financial Officer, Chief Business & Development Officer
     Director
     Tianyin Pharmaceutical Co., Inc.
     Web:     http://www.tianyinpharma.com
     Email:   Dr.Tong@tianyinpharma.com
     Tel:     +86-28-8551-6696 (Chengdu, China)
              +1-949-350-6999 (U.S.)
              +86 134 36 550011 (China)
     Address: 23rd Floor Unionsun YangKuo Plaza
              No 2 Block 3 South Renmin Road
              Chengdu, 610041
              China


                         Consolidated Balance Sheets
                                 (Unaudited)

                                                  March 31,        June 30,
                                                    2010             2009
                                                 (Unaudited)
    Assets
    Current assets:
        Cash and cash equivalents               $23,259,400      $12,352,223
        Accounts receivable, net of
         allowance for doubtful accounts
         of $268,955 and $171,947 at March
         31, 2010 and June 30, 2009,
         respectively                             8,257,642        5,620,519
        Inventory                                 3,622,666        3,808,289
        Advance payments                            381,420        1,188,115
        Loan receivable                             293,400               --
        Other current assets                        226,382          683,189
                Total current assets             36,040,910       23,652,335

    Property and equipment, net                  14,571,130        9,642,526

    Intangibles, net                             15,312,832       12,037,483

                Total assets                    $65,924,872      $45,332,344

    Liabilities
    Current liabilities:
        Accounts payable and accrued
         expenses                                $1,831,973       $1,392,639
        Accounts payable - construction
         related                                  2,888,303               --
        Short-term bank loans                     1,467,000        1,399,075
        VAT taxes payable                           546,893          458,930
        Income taxes payable                        686,441          490,514
        Other taxes payable                          17,083           11,890
        Dividends payable                            82,541          325,417
        Other current liabilities                   504,298          307,934
                Total current liabilities         8,024,532        4,386,399

    Equity
    Stockholders' equity:
        Common stock, $0.001 par value,
         50,000,000 shares authorized,
         26,599,027 and 17,908,912 shares
         issued and outstanding at March 31,
         2010 and June 30, 2009, respectively        26,599           17,909
        Series A convertible preferred
         stock, $0.001 par value, 10,000,000
         shares authorized, 2,072,750 and
         7,146,500 shares issued and
         outstanding at March 31, 2010 and
         June 30, 2009, respectively                  2,073            7,147
        Additional paid-in capital               29,830,243       19,694,514
        Statutory reserve                         2,299,806        2,299,807
        Treasury stock                             (111,587)        (111,587)
        Retained earnings                        22,817,495       16,486,775
        Accumulated other comprehensive
         income                                   2,598,009        2,551,380

                Total stockholders' equity       57,462,638       40,945,945

    Noncontrolling interest                         437,702               --

                Total equity                     57,900,340       40,945,945

                Total liabilities and
                 equity                         $65,924,872      $45,332,344



        Consolidated Statements of Operations and Comprehensive Income
                                 (Unaudited)

                      For the Three Months Ended   For the Nine Months Ended
                               March 31,                   March 31,
                            2010         2009          2010          2009

    Sales               $15,917,771   $9,929,301   $44,259,352   $29,593,109

    Cost of sales         7,493,230    5,069,133    21,019,960    14,696,736

    Gross profit          8,424,541    4,860,168    23,239,392    14,896,373

    Operating expenses:
        Selling,
         general and
         administrative   4,607,897    2,481,188    13,135,398     7,709,861
        Research and
         development        218,515       86,495       608,385       253,353
            Total
             operating
             expenses     4,826,412    2,567,683    13,743,783     7,963,214

    Income from
     operations           3,598,129    2,292,485     9,495,609     6,933,159

    Other income
     (expenses):
        Interest income
         (expense), net      (3,845)       4,874       (23,840)       34,682
        Other expenses           --      (20,821)      (39,510)      (75,515)
            Total other
             expenses        (3,845)     (15,947)      (63,350)      (40,833)

    Income before
     provision for
     income tax           3,594,284    2,276,538     9,432,259     6,892,326

    Provision for
     income tax             686,161      380,521     1,767,852     1,148,197

    Net income            2,908,123    1,896,017     7,664,407     5,744,129

    Less: Net (loss)
     attributable
     to noncontrolling
     interest                (1,357)          --        (2,397)           --

    Net income
     attributable to
     Tianyin              2,909,480    1,896,017     7,666,804     5,744,129

    Other comprehensive
     income
        Foreign currency
         translation
         adjustment            (155)     (50,359)       46,629       296,009

    Comprehensive
     income              $2,909,325   $1,845,658    $7,713,433    $6,040,138

    Basic earnings per
     share                    $0.11        $0.10         $0.31         $0.29
    Diluted earnings
     per share                $0.09        $0.10         $0.26         $0.23

    Weighted average
     number of common
     shares
       Outstanding
        Basic            26,363,749   15,987,334    23,650,332    15,902,618
        Diluted          31,631,330   15,987,334    29,931,923    24,980,236



                    Consolidated Statements of Cash Flows
                                 (Unaudited)

                                                  For the Nine Months Ended
                                                          March 31,
                                                    2010            2009
    Cash flows from operating activities:
    Net Income                                    $7,666,804      $5,744,129
    Adjustments to reconcile net income to
     net cash provided by (used in) operating
     activities:
        Depreciation and amortization                678,372         355,933
    Bad debt expense                                  96,734              --
        Noncontrolling interest                       (2,397)             --
        Share-based payments                       1,274,516              --
        Loss on disposal of fixed assets              39,510              --
        Changes in current assets and current
         liabilities:
    Accounts receivable                           (2,725,110)       (512,429)
    Inventory                                        190,744      (1,095,822)
    Other current assets                             457,487        (312,467)
            Accounts payable and accrued
             expenses                                437,483         (76,119)
    VAT taxes payable                                 87,300          46,066
    Income tax payable                               195,177          37,915
    Other taxes payable                                5,175         (31,085)
    Other current liabilities                        195,931         247,867
                Total adjustments                    930,922      (1,340,141)

                Net cash provided by
                 operating activities              8,597,726       4,403,988

    Cash flows from investing activities:
        Additions to property and equipment          (59,934)        (57,994)
        Additions to construction in progress     (5,278,806)     (2,686,567)
        Additions to intangible assets -
         approved drugs                           (2,742,168)     (2,416,425)
        Loan receivable                             (293,280)             --
        Accounts payable - construction
         related                                   2,887,122              --

                Net cash used in investing
                 activities                       (5,487,066)     (5,160,986)

    Cash flows from financing activities:
        Proceeds from (repayment of) bank
         loans                                        65,988        (512,575)
        Additional paid-in capital                 8,864,825              --
        Repayment of shareholder loans                    --        (102,737)
        Proceeds from minority shareholders          439,920              --
        Payment of dividends                      (1,577,068)             --

                Net cash provided by (used
                 in) financing activities          7,793,665        (615,312)

    Effect of foreign currency translation on
     cash                                              2,852          48,831

    Net increase (decrease) in cash and cash
     equivalents                                  10,907,177      (1,323,479)

    Cash and cash equivalents - beginning         12,352,223      12,057,150

    Cash and cash equivalents - ending           $23,259,400     $10,733,671

    Supplemental schedule of non cash
     activities
        Advance payments exchanged for
         intangible assets - drug                   $807,986             $--

    -- Q2 2010 Revenue Increased 47.9% to $14.9 Million, Net Income Increased
       24.8% to $2.6 Million with adjusted EPS of $0.11 on a diluted basis
    -- Cash and Equivalents of $19.9 Million on December 31, 2009
    -- First-half 2010 Cash Flow from Operations Increased 24.5% to
       $4.9 million
    -- Tianyin secured SFDA approvals for four new products during the second
       quarter addressing multiple indications, bringing total number of
       products in the portfolio to 48


    Q2 FY2010 Results
                                           Q2 FY2010    Q2 FY2009    CHANGE (%)
    Net Sales                           $14.9 million $10.1 million       +48%
    Gross Profit                         $7.8 million  $5.2 million       +50%
    GAAP Net Income                      $2.6 million  $2.1 million       +25%
    Adjusted Net Income*                 $3.4 million  $2.1 million       +62%
    GAAP EPS (Diluted)                        $0.08         $0.13         -38%
    Adjusted EPS (Diluted)                    $0.11         $0.13         -15%
    Weighted Shares Outstanding          30.4 million  15.7 million       +94%

    Six Months FY2010 Results
                                          Six Months    Six Months      CHANGE
                                            FY2010       FY2009           (%)
    Net Sales                           $28.3 million  $19.7 million      +44%
    Gross Profit                        $14.8 million  $10.0 million      +48%
    GAAP Net Income                      $4.8 million   $3.8 million      +24%
    Adjusted Net Income                  $5.5 million   $3.8 million      +48%
    GAAP EPS (Diluted)                        $0.17         $0.16          +6%
    Adjusted EPS (Diluted)                    $0.19         $0.16         +19%
    Weighted Shares Outstanding          28.5 million   24.7 million      +15%

Second Quarter Ending December 31, 2009 Financial Results

Revenue for the second quarter of fiscal 2010 was approximately $14.9 million, an increase of 47.9% compared to $10.1 million for the second quarter of fiscal 2009. The increase was attributable to higher sales of both existing and new products, channel expansion efforts that increased market penetration, and increased utilization of the Company's expanded production facility. Revenues from the top three selling products, Ginkgo Mihuan Oral Liquid, Arpu Shuangxin Oral Liquid and Azithromycin Dispersible Tablets, were $7.6 million and represented approximately 51% of total revenues collectively for the quarter.

Cost of goods sold for the three months ended December 31, 2009 was approximately $7.2 million or 48.1% of revenue as compared to $4.9 million or 49.0% of revenue for the three months ended December 31, 2008, yielding a gross profit of $7.8 million and gross margins of 51.9%, compared to $5.2 million in gross profit and gross margins of 51.0% during the second quarter of fiscal 2009. Gross margins improved as a result of an increase in higher margin products in the sales mix along with greater efficiencies in our production and manufacturing processes.

Operating expenses for the three months ended December 31, 2009 were approximately $4.6 million, up 72.0% compared to the same period in 2008. Selling, general and administration expenses for the period increased to approximately $4.4 million from $2.6 million in the second quarter of fiscal 2009 as a result of the implementation of Tianyin's sales and marketing strategy, including increased sales payrolls and direct marketing expenses, in addition to non-cash stock compensation expense of $0.9 million. Research and development expenses for the three months ended December 31, 2009 increased 134.4% to $0.2 million compared to the second quarter of fiscal 2009.

Operating income for the second quarter of fiscal 2010 totaled approximately $3.2 million, a 27.2% increase from the $2.5 million reported for the second quarter of fiscal 2009. Operating margins were 21.1% and 24.5% for the second quarter of fiscal 2010 and fiscal 2009, respectively as the Company continued to spend aggressively on sales and marketing initiatives to generate incremental and future product sales.

GAAP net income was approximately $2.6 million in the second quarter of fiscal 2010, a 24.8% increase, compared to $2.1 million for the second quarter of fiscal 2009. The company had an effective tax rate of 18.2% and 16.6%, for the second quarter of fiscal 2010 and 2009, respectively. Diluted earnings per share were $0.08 compared to $0.13 for the second quarter of fiscal 2010 and fiscal 2009 respectively, based upon 30.4 million and 15.7 million shares. Adjusted net income, which adds back the non-cash equity compensation charge of $0.9 million, was $3.4 million, representing 62.0% year-over year growth with earnings of $0.11 per diluted share. The divergence in the share count relates to the preferred shares which have been and are convertible into common, in addition to common shares issued in October 2009 private placement, and warrants both exercised and outstanding.

"Our strong performance in the second quarter and first half of fiscal year 2010 was driven by continued execution of our growth strategy, including the expansion of our sales force and distribution channels, increased sales and marketing activities to support market share gains for our expanding portfolio of products, in addition to rapid utilization of our newly added manufacturing capacity," stated Dr. Guoqing Jiang, Tianyin's Chief Executive Officer. "To facilitate our future growth strategy and to diversify our product offering, we formalized a joint venture named Sichuan Jiangchuan Pharmaceutical Co., Ltd. to produce macrolide antibiotics, which addresses a large and rapidly growing market in China. We have secured the property and commenced construction for our new production facility and expect this to be a key contributor to growth during fiscal 2011. In addition, we received SFDA approval for four new generic products, which complement our portfolio and address established billion dollar plus markets that cover multiple indications. We currently have 40 drug candidates under SFDA review and believe the Chinese stimulus plan, favorable health care policies, increased consumer disposable income, and favorable demographic trends will continue driving overall growth in demand for the pharmaceutical market."

Six Months Ending December 31, 2009 Financial Results

For the six months ended December 31, 2009, revenues increased 44.1% to $28.3 million from $19.7 million reported for the prior year period. Ginkgo Mihuan, one of Tianyin's flagship products, contributed approximately $9.2 million or 33% of total revenues for the first six months of fiscal 2010, representing 102% year-over-year growth. Revenues generated from the Arpu Shuangxin Oral Liquid were $2.9 million, or 16% of total revenues, a 2% increase from fiscal 2009. Tianyin's top 5 selling products generated revenue of $14.7 million and represented 53% of total revenue.

Cost of goods sold for the first six months of fiscal year 2010 was approximately $13.5 million, yielding a gross profit of $14.8 million and gross margins of 52.3%, compared to $10.0 million in gross profit and a gross margin of 51.0% for the same period in fiscal year 2009.

Operating expenses for the first six months of fiscal year 2010 were $8.9 million, compared to $5.4 million in the same period in fiscal 2009. Selling, general and administration expenses for the period increased to approximately $8.5 million from $5.2 million, which included the previously disclosed non-cash equity compensation expense.

Operating income totaled approximately $5.9 million, a 27.1% increase from the $4.6 million reported for the first half of fiscal 2009. Operating margins were 20.8% and 23.6% for the first half of fiscal year 2010 and 2009, respectively, and were impacted by a non recurring $0.9 million equity compensation expense for consulting.

For the six months ended December 31, 2009, net income was approximately $4.8 million, a 23.6% increase from $3.8 million recorded for the same period in fiscal 2009. Diluted earnings per share were $0.17, compared to $0.16 in the same period 2009, based on 28.5 million and 24.7 million shares for 2010 and 2009, respectively. Adjusted net income, which adds back the non-cash equity compensation charge of $0.9 million, was $5.5 million, representing 44.7% year-over year growth with earnings of $0.20 per diluted share.

The provision for income taxes was $1.1 million and $0.8 million for the first half of fiscal 2010 and 2009 with an effective tax rate of 18.5% and 16.6%, respectively.

Balance Sheet and Cash Flow

Cash and cash equivalents and restricted cash totaled $19.9 million on December 31, 2009 compared to $12.4 million on June 30, 2009, which was the result of cash flow from operations, a $4.5 million net equity raise completed in October, 2009, and proceeds from exercised warrants. Net cash used in investing activities for the six months ended December 31, 2009 was $4.3 million for the acquisition of intangible drug, and property and equipment. The Company had a current ratio of 6.8 to 1 and total stockholders' equity of $54.0 million, with total assets of $58.8 million versus total liabilities of $4.8 million on December 31, 2009. For the first six months of fiscal 2010, the Company generated $4.9 million in cash from operations versus $3.9 million for the same period in fiscal 2009.

    Business Development & Outlook
    -- On October 29, 2009, Tianyin announced the Sichuan Jiangchuan
       Pharmaceutical Co., Ltd. ("Jiangchuan") joint venture, which will focus
       on production of macrolide antibiotics, such as Azithromycin, one of
       the world's best-selling antibiotics. Jiangchuan holds a license from
       Chinese State Food and Drug Administration (SFDA) to produce macrolide
       antibiotics and a related business license from the Industry and
       Commerce Bureau and Tax department. Tianyin owns 77% of Jiangchuan and
       will utilize this as the foundation for a broader, longer term strategy
       to build a significant presence in the rapidly growing Chinese
       macrolide antibiotics market, while diversifying its revenue base of
       western pharmaceuticals. Construction on a new production facility in
       Xinjin Industry Development Area commenced January 8, 2010, with Phase
       I expected to operational by July, 2010 and Phase II to be operational
       by the second half of 2010, with total anticipated capital expenditures
       of $20 million. The Company anticipates significant revenue and
       earnings contributions from this initiative during fiscal 2011.
    -- On December 1, 2009, Tianyin received SFDA approvals to produce two
       generic products, including a Pediatric Fever and Cough Oral Liquid and
       an Antibacterial/Anti-inflammatory Capsule. The Pediatric Fever and
       Cough Oral Liquid is a generic prescription TCM that is used for
       respiratory tract infections and influenza in children to effectively
       reduce symptoms such as fever, shakes, cough, shortness of breath, and
       sore throat. According to Tianyin's market research and estimation,
       annual sales of this type of products are approximately $1.1 billion in
       China. The Antibacterial/Anti-inflammatory Capsules are a generic OTC
       TCM used as natural antibiotics to treat bacterial infection and
       inflammation with minimal side effects as compared to western
       antibiotics. Tianyin estimates that total annual sales of associated
       with products in this category are approximately $1.5 billion in China.
    -- Tianyin announced that 23 of its medicine compounds were included in
       the 2009 Edition of the National Basic Medical Insurance, Industrial
       Injury Insurance and Maternity Insurance Medicine Directory, which
       lists a total of 2,151 medicines and became effective on December 1,
       2009. The 23 medicines treat a variety of common indications and
       diseases and make up approximately 70% of Tianyin's total revenues for
       the fiscal year 2009.
    -- On January 11, 2010, Tianyin declared a quarterly cash dividend of 2.5
       cents to be paid to its common stock shareholders for the fiscal second
       quarter of 2010 on March 10, 2010.
    -- On January 13, 2010, Tianyin received approvals from the Chinese State
       Food and Drug Administration (SFDA) to produce two generic antibiotics,
       Ofloxacin Tablets and Fleroxacin Tablets, which target new indications
       for the Company. Ofloxacin addresses several indications including
       staph, strep throat (Streptococcus), pneumonia, E. Coli, and several
       sexually transmitted bacterial diseases. Fleroxacin addresses several
       indications including chronic and acute bronchitis and pneumonia,
       salmonella, multiple gastrointestinal and abdominal infections, and
       skin/soft tissue infections. Both drugs are included in China's
       Essential Drug List (EDL), which is increasing demand for these
       products throughout the PRC.

Fiscal 2010 and 2011 Guidance

On October 29, 2009 management increased fiscal 2010 guidance for the year which ends June 30, 2010 and expects to report revenues of more than $63.6 million and net income of at least $11.3 million, representing 48.3% and 43.0% year-over-year growth respectively.

On December 3, 2009 management announced financial guidance for fiscal year ending June 30 2011. The Company forecasted revenues of $113.3 million for fiscal 2011, representing a 78.1% increase over projected fiscal year 2010 revenues of $63.6 million, with net income of $19.6 million, representing 73.5% over projected net income of $11.3 million for fiscal 2010.

Conference Call

The Company will host a conference call to discuss the 2010 second quarter financial results on Monday, February 8, 2010 at 4:30 p.m. ET. Interested participants should call +1-877-941-8418 within the United States, or US +1-480-629-9809 if calling internationally. The conference ID is 4207607. It is advisable to dial in approximately 5-10 minutes prior to 4:30 p.m. EDT. If you are unable to participate in the call at the scheduled time, a playback will be available through February 22, 2010. To listen to the playback, please call +1-800-406-7325 from within the United States, or US +1-303-590-3030 internationally. Please use passcode 4207607 for the replay.

This call is being web cast by ViaVid Broadcasting and can be accessed at ViaVid's website at the following link http://www.microsoft.com...

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

This press release utilizes Non GAAP financial measures, such as adjusted net income and earnings per share. Management believes that adjustments reflecting certain non cash charges are more representative of the Company's operating results. Investors should not rely on such measures in making decisions

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternational.net



                     Consolidated Balance Sheets (Unaudited)
                                                December 31,        June 30,
                                                   2009              2009
                                                (Unaudited)
    Assets
    Current assets:
    Cash and cash equivalents                  $19,866,573       $12,352,223
    Accounts receivable, net of allowance
     for doubtful accounts of $172,182
     and $171,947 at December 31, 2009
     and June 30, 2009, respectively             8,642,875         5,620,519
    Inventory                                    3,220,937         3,808,289
    Advance payments                               381,420         1,188,115
    Loan receivable                                293,400                --
    Other receivables                              201,321           601,912
    Other current assets                            43,811            81,277
    Total current assets                        32,650,337        23,652,335

    Property and equipment, net                 10,646,495         9,642,526

    Intangibles, net                            15,470,215        12,037,483

    Total assets                               $58,767,047       $45,332,344

    Liabilities
    Current liabilities:
    Accounts payable and accrued expenses       $1,650,451        $1,392,639
    Short-term bank loans                        1,400,985         1,399,075
    VAT taxes payable                              542,629           458,930
    Income taxes payable                           571,885           490,514
    Other taxes payable                             15,696            11,890
    Dividends payable                               98,538           325,417
    Other current liabilities                      501,851           307,934
    Total current liabilities                    4,782,035         4,386,399

    Total liabilities                            4,782,035         4,386,399

    Equity
    Stockholders' equity:
     Common stock, $0.001 par value,
      50,000,000 shares authorized,
      25,795,902 and 17,908,912 shares
      issued and outstanding at  December
      31, 2009 and June 30, 2009,
      respectively                                  25,796            17,909


    Series A convertible preferred stock,
     $0.001 par value, 10,000,000 shares
     authorized, 2,322,750 and 7,146,500
     shares issued and outstanding at
     December 31, 2009 and June 30, 2009,
     respectively                                    2,323             7,147
    Additional paid-in capital                  28,337,810        19,694,514
    Statutory reserve                            2,299,807         2,299,807
    Treasury stock                                (111,587)         (111,587)
    Retained earnings                           20,393,640        16,486,775
    Accumulated other comprehensive
     income                                      2,598,164         2,551,380
    Total stockholders' equity                  53,545,953        40,945,945

    Noncontrolling interest                        439,059                --

    Total equity                                53,985,012        40,945,945

    Total liabilities and equity               $58,767,047       $45,332,344



    Consolidated Statements of Operations and Comprehensive Income (Unaudited)

                         For the Three Months Ended  For the Six Months Ended
                                 December 31,              December 31,
                              2009         2008         2009         2008

    Sales                  $14,936,378  $10,101,869  $28,341,581  $19,663,809

    Cost of sales            7,177,503    4,944,980   13,526,730    9,627,603

    Gross profit             7,758,875    5,156,889   14,814,851   10,036,206

    Operating expenses:
    Selling, general and
     administrative          4,409,735    2,595,311    8,527,501    5,228,672
    Research and
     development               197,380       84,220      389,870      166,858
    Total operating
     expenses                4,607,115    2,679,531    8,917,371    5,395,530

    Income from operations   3,151,760    2,477,358    5,897,480    4,640,676

    Other income
     (expenses):
    Interest income
     (expense), net            (10,443)      15,564      (19,995)      29,808
    Other expenses                  --      (26,975)     (39,510)     (54,695)
    Total other expenses       (10,443)     (11,411)     (59,505)     (24,887)

    Income before
     provision for income
     tax                     3,141,317    2,465,947    5,837,975    4,615,789

    Provision for income
     tax                       571,756      408,827    1,081,691      767,677

    Net income               2,569,561    2,057,120    4,756,284    3,848,112

    Less: Net income
     attributable to
     noncontrolling
     interest                    1,485           --       (1,040)          --

    Net income
     attributable to
     Tianyin                 2,568,076    2,057,120    4,757,324    3,848,112

    Other comprehensive
     income
    Foreign currency
     translation
     adjustment                 10,927      256,933       46,784      346,367

    Comprehensive income    $2,579,003   $2,314,053   $4,804,108   $4,194,479

    Basic earnings per
     share                       $0.10        $0.11        $0.20        $0.20
    Diluted earnings per
     share                       $0.08        $0.13        $0.17        $0.16

    Weighted average
     number of common
     shares outstanding
    Basic                   24,906,965   15,691,495   22,323,116   15,637,623
    Diluted                 30,439,912   15,691,495   28,521,127   24,697,018




                Consolidated Statements of Cash Flows (Unaudited)
                                                 For the Six Months Ended
                                                       December 31,
                                                  2009              2008
    Cash flows from operating activities:
    Net Income                                  $4,757,324        $3,848,112
    Adjustments to reconcile net income
     to net cash provided by (used in)
     operating activities:
    Depreciation and amortization                  393,575           237,619
    Noncontrolling interest                         (1,040)               --
    Share-based payments                         1,055,395                --
    Loss on disposal of fixed assets                39,510                --
    Changes in current assets and current
     liabilities:
    Accounts receivable                         (3,013,450)          132,660
    Inventory                                      592,309        (1,117,856)
    Other receivables                              401,237           608,042
    Other current assets                            37,500           227,140
    Accounts payable and accrued expenses          256,055          (119,588)
    VAT taxes payable                               83,038            71,402
    Income tax payable                              80,668            66,275
    Other taxes payable                              3,788           (35,705)
    Other current liabilities                      193,483               732
    Total adjustments                              122,068            70,721

    Net cash provided by operating
     activities                                  4,879,392         3,918,833

    Cash flows from investing activities:
    Additions to property and equipment         (1,288,234)         (570,491)
    Additions to intangible assets - drug       (2,742,168)         (130,323)
    Advance payments for research and
     development                                        --        (2,155,450)
    Loan receivable                               (293,280)               --

    Net cash used in investing activities       (4,323,682)       (2,856,264)

    Cash flows from financing activities:
    Repayment of bank loans                             --          (512,505)
    Additional paid-in capital                   7,590,962                --
    Proceeds from minority shareholders            439,920                --
    Payment of dividends                        (1,077,335)               --

    Net cash provided by (used in)
     financing activities                        6,953,547          (512,505)

    Effect of foreign currency
     translation on cash                             5,093            66,124

    Net increase in cash and cash
     equivalents                                 7,514,350           616,188

    Cash and cash equivalents - beginning       12,352,223        12,057,150

    Cash and cash equivalents - ending         $19,866,573       $12,673,338

    Supplemental schedule of non cash
     activities
    Advance payments exchanged for
     intangible assets - drug                     $807,986               $--

Non-GAAP Financial Measures and Reconciliations

As used herein, "GAAP" refers to generally accepted accounting principals in the United States. We use various numerical measures in conference calls, investor meetings and other forums, which are or may be considered "Non-GAAP financial measures" under the SEC's Regulation G. We have provided below for your reference supplemental financial disclosure for these measures, including the most directly comparable GAAP measure and an associated reconciliation.

      Preliminary and Non-audited Second Quarter and Year to Date Fiscal 2010
                            Earnings Reconciliation

                                  Three Months  Ended      Six Months Ended
                                    December 31, 2009     December 31, 2009

    Net Income  (GAAP)                     $2,568,076            $4,756,324
    Stock Compensation Charges (a)           $900,000              $900,000
    Less: Tax Adjustment                     $163,800              $166,500
    Adjusted Net Income                    $3,304,276            $5,489,824

                                   Three Months Ended      Six Months Ended
                                    December 31, 2009     December 31, 2009

    Earnings Per Share - Diluted
     (GAAP)                                    $0.08                  $0.17
    Stock Compensation Charges (a)             $0.03                  $0.03
    Adjusted Earnings Per Share
     - Diluted                                 $0.11                  $0.20


    (a) Net Income and diluted earnings per share for the second quarter and
        first six months of fiscal year 2010 includes a non-cash Stock
        Compensation Charge of $900,000 or approximately $0.03 in Earnings Per
        Share for the Three Months Ended December 31, 2009 in connection with
        consulting services. The company has not previously incurred on a
        regular basis a charge of this nature.

Note: To supplement our consolidated financial statements presented in accordance with GAAP, Tianyin Pharmaceutical Corp. uses non-GAAP measures, such as Adjusted Net Income and Adjusted Diluted Earnings per share, which exclude certain non cash expenses. This non-GAAP adjustment is provided to enhance the user's overall understanding of our historical and current financial performance and our prospects for the future. We believe the non- GAAP results provide useful information to both management and investors by excluding certain expenses we believe are not indicative of our core operating results.

Ofloxacin is a fluoroquinolone-based antibiotic, which addresses several indications including staph infection, strep throat (Streptococcus), pneumonia, influenza, E. Coli, and several sexually transmitted bacterial diseases such as Chlamydia and gonorrhea. Tianyin will produce these tablets in a 0.1 gram/tablet dosage form at its existing and new production facilities. Typical dosage for adults is 0.3g-0.6g daily which varies according to the level of infection.

Fleroxacin is a quinolone broad-spectrum antibiotic, which addresses several indications including chronic and acute bronchitis and pneumonia, salmonella, multiple gastrointestinal and abdominal infections, and skin/soft tissue infections. Tianyin will produce these tables in a 0.1 gram/tablet dosage form at its existing and new production facilities. Typical dosage for adults is 0.2g-0.4g daily for a period of 7-14 days.

Both drugs are included in China's Essential Drug List (EDL), which is increasing demand. Tianyin will launch both drugs three to four months after official approvals are received from Chinese SFDA. The Company estimates that current annual sales of these two products in the PRC are approximately $256 million with annual growth during the past few years of approximately 20%. The company expects blended gross margins from the sale of these two products to be approximately 38%.

"We are very pleased to receive SFDA approvals for these two generic antibiotics as we further build out our portfolio of infection treating medications. These products address high growth markets in China and create additional revenue opportunities for Tianyin," Dr. Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc., commented. "We expect production at our facility to begin by April 2010 and will leverage our existing distribution channels to sell these products to both hospitals and pharmacies throughout the PRC."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net

Dr. Jiang Guoqing, Tianyin's Chairman and Chief Executive Officer, commented, "We are pleased to pay our quarterly dividend. Our track record of consistent quarterly dividend payments reflects the continued strength of our balance sheet, cash flows, and future growth prospects, as well as our commitment to sharing our profits with our shareholders."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts during the presentation are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO in China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternational.net

The 2009 Edition Directory includes a total of 2,151 medicines and became effective throughout the PRC on December 1, 2009. There are 1,164 Western drugs in the Directory, including 349 Category A medicines, 791 Category B medicines, 20 restricted work injury insurance agents, and four maternity insurance agents. In addition, there are 987 Chinese medicines, including 154 Category A medicines and 833 Category B medicines. Patients will be fully reimbursed for consumption of Category A medicines by the National Basic Medical Insurance.

The 23 medicines treat a variety of common indications and diseases and make up approximately 70% of Tianyin's total revenues for the fiscal year 2009. Among 23 medicines produced by Tianyin, 8 medicines are classified as Category A and 15 medicines are classified as Category B.

"We are very pleased to have such a broad base of our product portfolio included in the 2009 National Insurance Directory. We expect the weighted average price of these medicines will not be affected and sales volume for these products will grow significantly, thus creating positive incremental revenue and earnings growth for 2010 and beyond," Dr. Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc., commented. "Inclusion in this Directory will drive demand as consumers benefit from the government's desire to bring better healthcare to the masses. We believe this will provide another growth conduit for Tianyin as we leverage our expanded production capacity, respected brand name and broad distribution base to capitalize on this significant growth opportunity."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 23 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net

CHENGDU, China, Dec. 1 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical Co., Inc., (NYSE Amex: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced that it has received approvals from the Chinese State Food and Drug Administration (SFDA) to produce Pediatric Fever and Cough Oral Liquid in dosage form of 10 ml/tube (SFDA approval number Z20093060) and Antibacterial and Anti-inflammatory Capsules in dosage form of 0.27 gram/capsule (SFDA approval number Z20090855).

Pediatric Fever and Cough Oral Liquid is a generic prescription TCM that is used for respiratory tract infections and influenza of children to effectively reduce symptoms such as fever, shakes, cough, phlem, shortness of breath, dry mouth and sore throat. According to Tianyin's market research and estimation, annual sales of this type of products are approximately $1.1 billion in China. Tianyin expects the demand of this product will increase during the wintertime flu season and that our introduction of this product will increase the Company's market share in the pediatric medicine market.

Antibacterial and Anti-inflammatory Capsules is a generic OTC TCM which is used mainly as natural antibiotics to treat bacterial infection and inflammation. It has minimal side effects when compared to western antibiotics. Tianyin estimates that total annual sales of antibacterial and anti-inflammatory products are approximately $1.5 billion in China. Tianyin expects to gain a portion of the market share in antibiotics medicine through the production and marketing of Antibacterial and Anti-inflammatory Capsules. The product will be manufactured in Company's new production facility.

"We are very pleased to receive approvals for our Pediatric Fever and Cough Oral Liquid and Antibacterial and Anti-inflammatory Capsules from the Chinese SFDA. One of our key growth strategies is to further expand our portfolio," Dr. Guoqing Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc., commented. "These products further complement our product portfolio and create additional revenue opportunities for indications which we have not previously addressed. We will immediately leverage current distribution network and available production capacity to produce these two products."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternation...

   Call Access Information:
    (877) 941-2321 from within the United States
    (480) 629-9714 if calling internationally
    Conference ID is 4182573

A replay will be available through November 21, 2009 and can be accessed by dialing (800) 406-7325 (U.S.), (303) 590-3030 (Int'l), Pin Code 4182573.

Webcast Access Information

Access Link: http://www.microsoft.com... .

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized traditional Chinese medicine in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates three GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The company has a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with three manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

For more information, please contact: For the Company: Allen Tang, Ph.D., MBA, Assistant to the CEO Tel: +86-158-2122-5642 Email: Allen.y.tang@gmail.com Investors: Mr. Matthew Hayden, HC International Tel: +1-561-245-5155 Email: matt.hayden@hcinternational.net Web: http://www.hcinternation...

CHENGDU, China, Oct. 29 /PRNewswire-Asia-FirstCall/ -- Tianyin Pharmaceutical, Co., Inc., (NYSE Alternext: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced it has formed a joint venture with Sichuan Mingxin Pharmaceutical Co., Ltd ("Mingxin") named Sichuan Jiangchuan Pharmaceutical Co., Ltd. ("Jiangchuan"). Tianyin owns 77% of Jiangchuan and will utilize this as the foundation for a broader, longer term strategy to build a significant presence in the rapidly growing Chinese macrolide antibiotics market, while diversifying its revenue base of western pharmaceuticals.

Specifically, Jiangchuan will manage research and development activities, while also manufacturing and selling Active Pharmaceutical Ingredients ("APIs") that are used to produce macrolide antibiotics. This large and growing class of drugs in China includes Azithromycin, Clarithromycin and Roxithromycin, which treat a wide range of bacterial based respiratory tract, urinary tract and skin infections. According to Yiyao Jingji Newsletter, these three drugs accounted for 90% of macrolide antibiotics sales in China for 2008. Total macrolide antibiotics sale in hospitals alone in China were $562 million in 2008 according to Yiyao Jingji Newsletter, while ResearchInChina stated that China's output and production capacity of antibiotic raw materials ranks Number 1 in the world.

As part of the transaction, Tianyin purchased two SFDA product approvals from Mingxin for $3 million which cover the antibiotics Azithromycin and Roxithromycin and will be contributed to the joint venture. Since APIs are produced through a two-stage process that combines fermentation followed by a synthesis process to create the macrolide antibiotics, a new manufacturing facility will be constructed to meet these specifications. Tianyin will leverage its sales and marketing expertise, product rationalization capabilities, extensive distribution channels, and partnership with Kelun Pharmaceuticals to ensure that a broad based market penetration is achieved.

Tianyin will use the financing proceeds to complete the $4.5 million land purchase in Sichuan for the joint venture where the new production facility will be built with full support of the Sichuan Xinjin County Government. Phase I, which will produce Oral and Injectable grade API for Azithromycin, in addition to other macrolide antibiotic intermediaries, is expected to be fully operational by July 2010. Phase II, which will include high output production of Roxithromycin, Clarithromycin and other macrolide antibiotics is anticipated to be operational by second half of 2012. Total capital expenditures for both phases are estimated to total approximately $20 million. Gross margins from these product lines are expected to range between 25-27% while the company can leverage its existing SG&A infrastructure to bolster net margins. The company anticipates this initiative will contribute approximately $22.5 million in revenue and $1.4 million in net income for fiscal 2011. The completion of the production facility for the JV alone will enable further growth and improvements in profitability for fiscal year 2012 with revenue and net income contributions expected to be $47 million and $6.5 million, respectively. Once both phases are operating close to full capacity, the facility will have the potential to generate $12 million in net income on an annual basis.

Tianyin launched its Azithromycin Dispersible Tablets in October 2008, which marked its initial entrance into this $350 million plus market. This product line is sold through its distributors under the company's "Cost Preference Strategy" and is projected to generate $5.2 million in revenue during fiscal year 2010.

On August 18, 2009 Azithromycin was added to China's Essential Drug List ("EDL") which was published as a key component of China's $126 billion healthcare reform. According to Business Monitor International, the price of antibiotics and APIs have increased as exports surged and new government environmental protection policies have created further barriers to entry.

Dr. Jiang Guoqing, Tianyin's Chairman and Chief Executive Officer, said, "After witnessing the rapid market penetration of our Azithromycin tablets, we completed extensive market research which confirmed that the macrolide antibiotics product segment is growing rapidly with increased selling prices, and is currently serviced by a limited number of suppliers with insufficient production capacity to meet China's demand. The addition of these drugs to China's "EDL" in addition to the implementation of the Rural Healthcare Reform will also stimulate additional, and potentially significant, demand. The recent change in government regulations on API production in India, traditionally a major source for these critical compounds in addition to China, has created a further window of opportunity. We are excited about the "Jiangchuan" joint venture which is strategically located in Sichuan, a bridgehead to Western China and historically one of the largest farming bases for TCM herbs, which will continue to play an important role in our product portfolio. We believe this initiative provides a significant long term conduit for future growth, in addition to providing an attractive return on invested capital, while further diversifying our revenue base."

Financing

In order to complete the SFDA product, land and equipment purchases in a timely manner, the company completed a $4.987 million equity financing to complement its current working capital position. The company issued 1,534,570 shares of common stock and 306,914 warrants with a strike price of $4.50. TriPoint Global Equities, LLC was the placement agent for the financing.

Fiscal 2010 Guidance

Management is revising its fiscal 2010 guidance. The company now anticipates revenues and net income of $63.3 million and $11.3 million, representing 48.3% and 43.0% year-over-year growth. Strong growth in the company's current product portfolio and the opening of the recent manufacturing facility are the primary drivers for this revised outlook. Previous guidance was $59 million in revenue and $10.5 million in net income.

For fiscal 2011 and fiscal 2012, management expects significant increases in revenue and net income. This includes contributions from the company's current product portfolio and anticipated contributions from the "Jiangchuan" joint venture. These forecasts do not include future acquisitions, joint venture agreements, or product acquisitions which could generate incremental contributions to the financial results.

About TriPoint Global Equities, LLC

TriPoint Global Equities, LLC ("TriPoint Global"), a FINRA member firm, is a boutique investment bank that provides U.S. and non-U.S. companies of up to $500 million in revenue with capital raising, corporate finance advisory services and assistance with navigating the regulatory environment for companies listing on U.S. markets. TriPoint Global maintains specialized practices in institutional private placements, mergers and acquisitions, and corporate finance. TriPoint Global has offices in New York and Washington, D.C. For more information visit

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO
     China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel: +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web: http://www.hcinternation...

In addition, Tianyin is now eligible to become an S-3 filer which is reserved for companies on a listed exchange that have filed all required reports on a timely basis during the past twelve months. This allows automatic updating of disclosure requirements with the 10-K or 10-Q filings and significantly reduces the costs and resource burdens on the company associated with filing post-effective amendments to the registration statement.

Dr. Jiang Guoqing, Tianyin's Chairman and Chief Executive Officer, commented, "We appreciate the continued support of our shareholders and believe that our strategy of providing a current return and potential capital appreciation resonates well with investors who are looking for growth and income. In addition, this S-3 eligibility will save the company money and resources to meet its filing requirements."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma....

Safe Harbor Statement

The Statements which are not historical facts during the presentation are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
    Allen Tang, Ph.D., MBA, Assistant to the CEO in China
    Tel: +86-158-2122-5642
    Email: Allen.y.tang@gmail.com

    Investors:
    Mr. Matthew Hayden, HC International
    Tel: +1-561-245-5155
    Email: matt.hayden@hcinternational.net
    Web: http://www.hcinternation...

Mr. Stewart Lor, Director, is scheduled to present at 12:30 pm ET on Wednesday, October 14th, 2009 and participate in one-on-one meetings with conference attendees throughout the three-day event. The presentation will discuss the Company's diversified product portfolio, customer base addressable market, competitive landscape, and recent financial results. Mr. Lor will provide additional details on the $126 billion government sponsored healthcare reform plan and its potential benefits to the Company's long-term growth strategy.

Registration is by invitation and registration is mandatory. For more information on the conference, contact your Roth representative or visit http://www.roth.com .

About ROTH Capital Partners

ROTH is a full service investment banking firm dedicated to the small and micro-cap market. The firm is privately owned with current principals being majority owners. The core management team has been consistent for many years. Since the inception of the firm in 1984, ROTH has been a leader and innovator in the small and micro cap markets. Roth's exclusive focus has been, is, and will continue to offer a full spectrum of investment banking services, including raising capital, research coverage, trading and market making, merger and acquisition advisory services, and investor conferences.

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts during the presentation are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO in China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternation...

Mr. Yang, age 42, is a well-known certified pharmaceutical sales training specialist with more than 18 years experience in the sales and marketing industry. His experience includes serving as a sales training specialist and marketing manager for Astra Zeneca and Bayer, in addition to managing the training services for 85 well-known domestic and international pharmaceutical companies during the past ten years. These include Grunenthal-San Huan Pharmaceutical (China) Co., Ltd., Beaufour Ipsen Pharmaceutical Co., Ltd., and Yangtze River Pharmacy Group, etc. Mr. Yang also served as BPIP implementation consultant for CPDF, launched by the World Bank in 2001, and the executive advisor of a policy system program in 2007, which is a training system formed by the Chinese and British government aiming to support domestic small to medium sized businesses.

Dr. Jiang Guoqing, Tianyin's Chairman and Chief Executive Officer, said, "We are very pleased to have Mr. Yang join our senior management team as Chief Operating Officer as his industry experience and dedication will be proved invaluable for Tianyin. During the past year Mr. Yang has helped implement a strategy to boost sales of our leading products while further improving the functionality of our sales and marketing team. The success of Mr. Yang's efforts can be evidenced by our fourth quarter financial results and we believe the plan he has helped establish for Tianyin will contribute to accelerating year-over-year growth during fiscal 2010."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $43 million and net income of approximately $7.9 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net

Tianyin Pharmaceutical Co., Inc., (NYSE Amex: TPI), a developer, manufacturer and supplier of modernized traditional Chinese medicine ("TCM") and generic pharmaceuticals in China, today announced Annual 2009 financial results ended June 30, 2009.

Fourth Quarter Ending June 30, 2009 Financial Results

Fourth quarter 2009 revenues were $13.3 million, representing a 43.2% increase from $9.3 million recorded in the fourth quarter of fiscal 2008. The increase was driven by enhanced marketing and advertising programs supporting a broader product portfolio and improvements in the Company's sales channels which led to increased market penetration. Revenues in the fourth quarter generated by the top three selling products, Ginkgo Mihuan Oral Liquid, Arpu Shuangxin Oral Liquid, and Azithromycin Dispersible Tablets, were collectively $7.8 million and represented approximately 58.6% of total revenues for the quarter. During the fourth quarter of fiscal 2008 sales of top three products were approximately $5.9 million which represented 63.4% of total revenue.

Cost of sales in the fourth quarter 2009 increased 41.6% to $6.8 million, from $4.8 million in the fourth quarter of 2008. Gross profit in the fourth quarter 2009 was $6.5 million, a 44.9% increase from $4.5 million in the fourth quarter of 2008.

Gross margins were 48.7% in the fourth quarter of 2009, compared to 48.9% in the third quarter of 2009 and 48.2% in the fourth quarter of 2008.

Operating expenses were $3.7 million and operating income was $2.8 million in the fourth quarter of 2009, representing a 45.2% increase from $1.9 million reported in the fourth quarter of 2008.

Net income for the quarter was $2.2 million, up 41.8% from net income of $1.5 million in the same period a year ago. Income taxes were approximately $0.5 million representing an effective tax rate of 18.5%.

Fully diluted earnings per share were $0.08 for the last quarter of 2009, compared to fully diluted earnings per share of $0.05 in the fourth quarter of 2008.

Tianyin incurred a one time impairment loss on intangible assets of $0.4 million related to Huganning Tablets, Qianbai Biyan Tablets and Xiaoyan Lidan Tablets. Without this charge net income would have been $2.6 million with diluted EPS of $0.10 based on 26.3 million shares.

Dr. Guoqing Jiang, Chief Executive Officer of Tianyin, commented, "We are very pleased with our financial results. Several factors contributed to our strong performance for the fiscal year as growth accelerated in the fourth quarter. These included our ability to achieve SFDA approvals and launch several new products, an expanded marketing strategy focused on branding key products, and our ability to gain market share by leveraging a large internal sales team with key distributors. We met a significant milestone by completing the construction of our new production facility which greatly improves our capacity to support growth during fiscal 2010 and beyond. While the past year was challenging for the global marketplace, we took decisive corporate actions which included issuing a cash dividend and buying back stock to reward our loyal shareholders."

Year Ending June 30, 2009 Financial Results

For the fiscal year ended June 30, 2009, revenues increased 28.2% to $42.9 million from $33.5 million reported for the prior year period. Expanded sales efforts helped create strong demand for the Company's branded and generic drugs including the introduction of 9 new drugs. Ginkgo Mihuan, one of Tianyin's flagship products, contributed approximately $11.6 million or 27.1% to total revenues for the fiscal year 2009, representing 28% year-over-year growth. Revenues generated from the Arpu Shuangxin Oral Liquid were $10.4 million, or 24.2% of total revenues, a 54.3% increase from fiscal 2008. Tianyin's top 5 selling products generated revenue of $29.3 million and represented 68.3% of total revenue.

Cost of goods sold for fiscal year 2009 was approximately $21.5 million, yielding a gross profit of $21.4 million and gross margins of 49.8%, compared to $14.7 million in gross profit and a gross margin of 43.8% for fiscal year of 2008. The 600 basis point improvement in gross margins was primarily attributable to the growth in revenue, product mix optimization, enhanced cost control and focus on higher margin products in the Company's portfolio such as Ginkgo Mihuan Oral Liquid and Arpu Shuangxin Oral Liquid.

Operating expenses for fiscal year 2009 were $11.7 million, up 64.5% compared to the same period in 2008. Selling, general and administration expenses for the period increased to approximately $7.8 million from $4.7 million. The increase was primarily due to enhanced marketing efforts including increased sales payrolls and direct marketing expense.

Operating income totaled approximately $9.7 million, a 28.4% increase from the $7.6 million reported for fiscal year 2008. Operating margins were 22.7% and 22.6% for the fiscal year 2009 and 2008, respectively.

For fiscal 2009, net income was approximately $7.9 million, a 32.4% increase from $6.0 million recorded for fiscal 2008 and surpassed previously announced guidance by approximately 5.3%. Diluted earnings per share were $0.32, compared to $0.31 in the same period 2008, based on 24.8 million and 19.1 million shares for 2009 and 2008, respectively. The increase in the diluted shares was related to preferred stock which carries a fixed conversion price of $1.60.

The provision for income taxes was $1.6 million and $1.2 million for fiscal 2009 and 2008 with an effective tax rate was 17.2% and 17.1%, respectively.

"China's healthcare reform is being implemented to provide basic medical care for its 1.3 billion citizens by 2020 with approximately $126 billion being allocated during the next three years alone. This initiative is well underway as evidenced by the build-out of new Clinics and the publishing of the formal EDL. This creates significant growth opportunities for Chinese pharmaceutical companies like Tianyin which possess a diversified product portfolio and extensive sales and distribution channels. We currently have 17 products in our R&D pipeline which address wide range of chronic and critical conditions. We expect to receive additional SFDA approvals during fiscal 2010 which will further diversify our branded product base with high margin revenue potential while enabling us to further differentiate our company from our competitors. We will leverage the new production capacity to continue the growth momentum in fiscal 2010 and beyond," concluded Dr. Jiang.

Balance Sheet and Cash Flow

The Company had a current ratio of 5.4 to 1 and $12.4 million in cash and cash equivalents on June 30, 2009. Stockholders' equity was $40.9 million, with working capital of $19.3 million$ and total liabilities of $4.4 million. Days Sales Outstanding for fiscal 2009 were 48 days compared to 49 days for 2008. For the fiscal year of 2009, the Company generated $8.3 million in cash from operations versus $3.7 million for the same period in 2008.

Significant Business Developments -- Tianyin engaged a major advertising firm to commence a marketing initiative for its Xuelian Chongcao Oral Liquid product that will include prominent, prime-time advertisements on China Central Television (CCTV), China's most famous television station, which is viewed by 98% of households throughout China. Xuelian Chongcao Oral Liquid is an Over-The-Counter TCM drug that effectively replenishes kidney functionality and also improves overall energy. -- Tianyin completed construction of its new production facility in Chengdu which recently received Good Manufacturing Practices Certificate for pharmaceutical products from the State Food and Drug Administration ("SFDA") in China. Construction was delayed due to the earthquake in Sichuan which occurred on May 12, 2008. The new production facility is expected to triple the production capacity of solid dosage drugs, such as Azithromycin Dispersible Tablets, Mycophenolate Mofetil Capsules, and Dantong Capsules, and will be able to support approximately $100 million in annual revenues assuming the current product mix. The Company expects to commence production by October, 2009. -- Tianyin further expanded its product portfolio during fiscal 2009 which now totals 39 drugs. The Company received 10 new production approvals from the Chinese SFDA for drugs which address multiple medical conditions and will be produced in the new facility to drive incremental growth. The company has 17 different drugs currently moving through the approval process. -- Tianyin had four products included in China's Essential Drug List (EDL) released by the Chinese government on August 18, 2009. Azithromycin Dispersible Tablets, Simvastatin Tablets, Hugan Tablets and Xiao Yan Li Dan Capsules and Tablets are all generic. The inclusion will significantly increase revenues generated by these products while the gross margin will be lower due to pricing control. -- Tianyin declared a quarterly cash dividend of $0.025 with the second dividend being paid in September to common stock shareholders of record as of July 31, 2009. In addition, the Company announced and executed a buyback program during fiscal 2009.

Fiscal 2010 Guidance

For fiscal year 2010 which ends June 30, 2010, Tianyin forecasts that revenues will exceed $59 million with net income at least $10.5 million, representing approximately 37.5% and 32.9% growth compared to fiscal 2009. Management anticipates that approximately $7 million, or 12% of total revenues will emanate from products which were launched during fiscal 2009, while sales of the Company's flagship product, Ginkgo Mihuan, will grow by approximately 80% to $20 million for the year. Net income forecasted does not include non- cash expenses associated with stock compensation plans or future interest expense. This guidance does not include any contribution from potential future acquisitions. Manage will continue to evaluate and update guidance if and when its appropriate.

Conference Call

The Company will host a conference call to discuss the 2009 annual financial results on Thursday, September 24, 2009 at 10:30 a.m. EDT. Interested participants should call 877-941-2068 within the United States, or US +1-480-629-9712 if calling internationally. The conference ID is 4161412. It is advisable to dial in approximately 5-10 minutes prior to 10:30 a.m. EDT. If you are unable to participate in the call at the scheduled time, a playback will be available through October 8, 2009. Please call 800-406-7325 from within the United States, or US +1-303-590-3030 internationally. Please use pass code 4161412 for the replay.

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 17 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts during the presentation are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

For more information, please contact: For the Company: Allen Tang, Ph.D., MBA, Assistant to the CEO in China Tel: +86-158-2122-5642 Email: Allen.y.tang@gmail.com Investors: Mr. Matthew Hayden, HC International Tel: +1-561-245-5155 Email: matt.hayden@hcinternational.net Web: http://www.hcinternation... -- FINANCIAL TABLES FOLLOW -- Consolidated Balance Sheet June 30, June 30, 2009 2008 Assets Current assets: Cash and cash equivalents $12,352,223 $12,057,150 Accounts receivable, net of allowance for doubtful accounts of $171,947 and $90,064 at June 30, 2009 and 2008, respectively 5,620,519 4,460,406 Inventory 3,808,289 3,555,691 Advance payments 1,188,115 -- Other receivables 601,912 371,815 Other current assets 81,277 247,139 Total current assets 23,652,335 20,692,201 Property and equipment, net 9,642,526 5,758,966 Intangibles, net 12,037,483 10,307,754 Total assets $45,332,344 $36,758,921 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses $1,392,639 $1,337,682 Short-term bank loans 1,399,075 1,393,345 VAT taxes payable 458,930 277,090 Income taxes payable 490,514 341,214 Other taxes payable 11,890 39,939 Dividends payable 325,417 378,545 Other current liabilities 307,934 142,733 Total current liabilities 4,386,399 3,910,548 Total liabilities 4,386,399 3,910,548 Stockholders' equity: Common stock, $0.001 par value, 50,000,000 shares authorized, 17,908,912 and 14,738,450 shares issued and outstanding at June 30, 2009 and 2008, respectively 17,909 14,739 Series A convertible preferred stock, $0.001 par value, 7,146,500 and 9,384,375 shares issued and outstanding at June 30, 2009 and 2008, respectively 7,147 9,384 Additional paid-in capital 19,694,514 18,002,439 Statutory reserve 2,299,807 1,380,806 Treasury stock (111,587) -- Retained earnings 16,486,775 10,963,131 Accumulated other comprehensive income 2,551,380 2,477,874 Total stockholders' equity 40,945,945 32,848,373 Total liabilities and stockholders' equity $45,322,344 $36,758,921

Consolidated Statements of Operations and Comprehensive Income

For the Years Ended June 30, 2009 2008 Sales $42,894,355 $33,459,609 Cost of sales 21,516,065 18,802,225 Gross profit 21,378,290 14,657,384 Operating expenses Selling expenses 7,825,939 4,725,480 General and administrative expenses 3,491,804 2,132,438 Research and development 343,952 230,745 Total operating expenses 11,661,695 7,088,663 Income from operations 9,716,595 7,568,721 Other income (expenses): Interest income 357,343 -- Interest expense (95,880) (368,113) Impairment loss on intangible assets (431,344) -- Total other income (expenses) (169,881) (368,113) Income before provision for income tax 9,546,714 7,200,608 Provision for income tax 1,639,104 1,229,300 Net income 7,907,610 5,971,308 Other comprehensive income Foreign currency translation adjustment 73,506 2,044,766 Comprehensive income $7,981,116 $8,016,074 Basic earnings per share $0.41 $0.38 Diluted earnings per share $0.32 $0.31 Weighted average number of common shares outstanding: Basic 15,937,411 14,511,717 Diluted 24,805,281 19,127,853

Consolidated Statements of Cash Flows

For the Years Ended June 30, 2009 2008 Cash flows from operating activities: Net Income $7,907,610 $5,971,308 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 676,605 372,612 Loss on intangible assets 431,344 -- Provision for bad debts 81,512 51,995 Stock based compensation 249,026 68,000 Changes in current assets and current liabilities: Accounts receivable (1,223,282) (994,310) Inventory (237,975) (1,400,366) Other receivables (253,595) (209,556) Other current assets 190,890 (246,952) Accounts payable and accrued expenses 49,867 31,336 VAT taxes payable 180,701 41,771 Income tax payable 147,897 2,228 Other taxes payable (28,213) 13,521 Other current liabilities 164,611 7,330 Total adjustments 429,388 (2,262,391) Net cash provided by operating activities 8,336,998 3,708,917 Cash flows from investing activities: Additions to property and equipment (58,014) (211,065) Additions to construction in progress (4,179,902) (757,295) Additions to intangible assets-drug (2,417,250) (3,702,484) Advance payments for intangible assets-drug (1,188,115) -- Net cash used in investing activities (7,843,281) (4,670,844) Cash flows from financing activities: Issuance of preferred stock -- 13,248,054 Dividends paid (73,944) (83,206) Repayment of short-term bank loans -- (826,140) Treasury stock (111,587) -- Repayment of shareholder loans -- (146,143) Repayment of long-term bank loans -- (119,667) Net cash provided by (used in) financing activities (185,531) 12,072,898 Effect of foreign currency translation on cash (13,113) 321,789 Net increase in cash and cash equivalents 295,073 11,432,760 Cash and cash equivalents at beginning of year 12,057,150 624,390 Cash and cash equivalents at end of year $12,352,223 $12,057,150

According to the National Medicine Administration Law of the People's Republic of China, all new pharmaceutical manufacturing facilities must pass an examination to obtain their GMP Certificates. In June 2009, the examination committee visited Tianyin Pharmaceuticals and conducted a review of management practices of its new production facility, including quality control of raw materials, manufacturing processes, and the inspection and acceptance of its finished products. Tianyin's new production facility for solid dosage drugs met all GMP standards.

"We are very pleased with the SFDA's decision to grant us the GMP certification, which is the result of hard work and dedication from our entire team," Dr. Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc., commented. "This certification is the final step to commencing production at our new facility and effectively tripling the capacity of our solid dosage medicines, such as Azithromycin Dispersible Tablets, Mycophenolate Mofetil Capsules, Dantong Capsules and other recently approved medicines in our portfolio. This will enable us to meet our projected 40% revenue growth for fiscal 2010 while providing the capacity to accommodate up to $100 million in annual revenues as we look toward the future."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net

According to the National Medicine Administration Law of the People's Republic of China, all new pharmaceutical manufacturing facilities must pass an examination to obtain their GMP Certificates. In June 2009, the examination committee visited Tianyin Pharmaceuticals and conducted a review of management practices of its new production facility, including quality control of raw materials, manufacturing processes, and the inspection and acceptance of its finished products. Tianyin's new production facility for solid dosage drugs met all GMP standards.

"We are very pleased with the SFDA's decision to grant us the GMP certification, which is the result of hard work and dedication from our entire team," Dr. Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc., commented. "This certification is the final step to commencing production at our new facility and effectively tripling the capacity of our solid dosage medicines, such as Azithromycin Dispersible Tablets, Mycophenolate Mofetil Capsules, Dantong Capsules and other recently approved medicines in our portfolio. This will enable us to meet our projected 40% revenue growth for fiscal 2010 while providing the capacity to accommodate up to $100 million in annual revenues as we look toward the future."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net

All the drugs in the Essential Drug List will be included in China's basic health insurance catalog with a higher reimbursement percentage. Meanwhile, the pricing of the Essential Drugs will be decided by the governments through public tender at the provincial level. The distribution of Essential Drugs will also be carried out through unified channels by either drug manufacturers or drug distributors. Companies winning the government tenders will have the potential to significantly increase sales while margins on generic and more commonly used drugs will see pricing control from the government.

As a result of this inclusion, management expects the sales of these four drugs could potentially increase from $6.1 million in fiscal year 2009 to approximately $12 million in fiscal year 2010, which ends June 30, 2010.

"The release of China's essential drug list ensures that most rural citizens with comparatively low income will have access to cheap and safe medicines," Dr. Jiang, Chairman and CEO of Tianyin Pharmaceutical Co., Inc., commented. "We view this inclusion as an opportunity to significantly increase revenues generated from these products."

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net

Mr. Stewart Lor, Director, is scheduled to present at 10:50 am ET on Friday, September 11th, 2009 in the Kennedy I salon (4th Floor). Mr. Allen Tang, assistant to the CEO, will join Mr. Lor for one-on-one meetings with conference attendees throughout the three-day event. The presentation will discuss the Company's diversified product portfolio, customer base addressable market, competitive landscape, and recent financial results. Mr. Lor will provide additional details on the $126 billion government sponsored healthcare reform plan and its potential benefits to the Company's long-term growth strategy.

Registration is mandatory. For more information on the conference, contact your Rodman and Renshaw representative, or to register, please visit http://www.rodmanandrens... or email Lily Khaykina at lk@rodmanrenshaw.com. Please book all one-on-one requests directly through the meeting software interface provided by Rodman and Renshaw.

Additionally, Mr. Lor and Mr. Tang will host meetings throughout the New York area on September 11, 2009. To request a meeting please contact Mr. Matt Hayden of HC International at 760-613-3695-271 or by email at matt.hayden@hcinternational.net.

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts during the presentation are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO in China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternation...

Tianyin Pharmaceutical, Co., Inc., (NYSE AMEX: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ('TCM') based in Chengdu, China, today announced its unaudited, preliminary financial results for the fiscal year ended June 30, 2009, and fiscal 2010 financial guidance. The Company plans to announce the final results and to hold a conference call for 2009 in September.

Fiscal Year 2009 Financial Highlights

Based on preliminary financial data, Tianyin expects to report fiscal 2009 (year ending June 30) revenues of $42 million and net income of at least $7.5 million, representing 25% and 26% year over year growth respectively. Ginko Mihuan is expected to represent approximately 23% of total revenues. This data is subject to normal audit adjustments and therefore may be changed when reported in Tianyin's Annual Report on Form 10-K for the fiscal year ended June 30, 2009.

'We are very pleased with these anticipated results, which have been supported by targeted sales promotion of new and existing products, including Ginko Mihuan, and supported by the further expansion of our sales team and distribution channels.' Dr. Jiang, Chairman and CEO of Tianyin commented. 'During the 2009 fiscal year, our advertising expense increased 15% to $1.8 million, generating strong brand awareness and creating further demand for our flagship and other proprietary products. In addition, we instituted a cash dividend which enables our shareholders to participate in our profitability each quarter and is something we hope to increase in the future as the Company grows.'

'During fiscal 2009, we received approval from the Chinese State Food and Drug Administration (SFDA) for ten new products. These introductions are critical to our growth strategy and our enhanced product portfolio positions us for accelerating revenues during fiscal 2010. We significantly grew the sales of our flagship Gingko Mihuan through successful tenders and greatly expanded the number of distributors actively marketing this product. We also completed the build-out of our new production facility and are currently initiating GMP certification process. The recent passage of the Healthcare Reform Act was a significant milestone and will culminate into approximately $126 Billion being spent by the government during the next 3 years to bring universal healthcare to all Chinese citizens. As a further component, the central government openly stated its support for Traditional Chinese Medicine (TCM), which will receive additional incentives and funding; this is a policy that we believe will have significant positive implications for our industry,' Dr. Jiang stated.

Fiscal Year 2010 Financial Guidance

For fiscal year 2010 which ends June 30, 2010, Tianyin forecasts that revenues will exceed $59 million with net income at least $10.5 million, representing approximately 40% and 42% growth compared to fiscal 2009 forecasts. Management anticipates that approximately $7 million, or 12% of total revenues will result from products which were launched during fiscal 2009, while it is anticipated that sales of the Company's flagship product, Ginko Mihuan, will grow by approximately 80% to $20 million for the year. Net income forecasted does not include non-cash expenses associated with stock compensation plans or future interest expense. This guidance does not include any contribution from potential future acquisitions and management will continue to evaluate its business outlook as necessary and communicate any changes on a quarterly basis or when appropriate. At the time of this release, the Company does not have any formal agreements nor is it involved in any definitive discussions regarding potential acquisitions.

Growth will be supported by a number of initiatives, including: 1) Receiving GMP certification for Tianyin's new production facility will increase its capacity for solid dosage by 300% and enable future growth for 20 of its products; 2) this new facility will enable the company to initiate a wholesale component to its business focused exclusively on distributing higher margin, specialty products for other pharmaceutical manufactures through the existing sales force and distribution channels; 3) the new Healthcare Reform Act is expected to increase the demand for approximately 20 of the total 22 drugs Tianyin currently has listed in the reimbursement catalog; 4) expanding its targeted marketing strategy, including multi-media and television advertising, to further brand and promote higher gross-profit-margin products, such as Ginkgo Mihuan Oral Liquid and Xuelian Cangcao; 5) expand collaboration with universities and research organizations to complement Tianyin's internal drug development efforts and continue introducing new products to the market; and, 6) continue looking for complementary acquisitions primarily focused on existing product lines which would increase the depth and breadth of the existing portfolio.

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ('TCM') in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO
     China
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     HC International, Inc.
     Matt Hayden
     Tel:   +1-561-245-5155
     Email: Matt.hayden@hcinternational.net

SOURCE Tianyin Pharmaceutical, Co., Inc.

Source: PR Newswire (June 18, 2009 - 8:00 AM EDT)

Interested parties may access the call by dialing +1-87... from within the United States, or +1-48... if calling internationally. The conference ID is 4076664. It is advisable to dial in approximately 5-10 minutes prior to the start of the call. A replay will be available through May 29, 2009 and can be accessed by dialing +1-80... (U.S.), +1-303-... (Int'l), passcode 4076664.

This call is being web cast by ViaVid Broadcasting and can be accessed at ViaVid's website at http://www.viavid.net or at the following link: http://www.microsoft.com... .

About Tianyin Pharmaceuticals

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 39 products, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 40 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,365 employees. Tianyin achieved revenue of approximately $33.5 million and net income of approximately $6 million in FY2008 ending June 30, 2008. For more information about Tianyin, please visit http://www.tianyinpharma... .

Safe Harbor Statement

The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

    For more information, please contact:

    For the Company:
     Allen Tang, Ph.D., MBA, Assistant to the CEO
     Tel:   +86-158-2122-5642
     Email: Allen.y.tang@gmail.com

    Investors:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternation...

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