Hubei Pharmaceutical Group Announces Latest Joint Venture

Hubei Pharmaceutical Group makes a strategic entry into Biotech through acquisition of second Joint Venture interest. They commence production on Central China's largest small format injection facility.

New York, NY (PRWEB) July 14, 2004 -- Hubei Pharmaceutical Group (OTCBB: HBEI, Frankfurt: HUQ) announced today that its new joint venture, a 60% controlling interest in Hubei Tongji Benda Ebei Pharmaceutical Co. Ltd. (HBBendaJV) Located in Guangshui City, Hubei Province, China is now operational.

HBBendaJV has been granted an operating license for pharmaceutical research, development, production and distribution as a Sino-American Joint Venture Corporation. Initial production has commenced on the production lines acquired as part of the vend-in by the minority partner of its operating dosage division. They are the largest small format injection production facilities in Central China and were granted GMP certification to the latest standards following upgrades and modernization completed in the 4th quarter last year. A total of 79 generic and high-tech products are sold domestically in over 20 provinces, cities and autonomous regions. Products are also exported to other countries in Southeast Asia. Work on a new tablet and capsule production facility is well underway. It is expected that it will be completed in the third quarter and operational as soon as GMP certification and licenses are issued in the third or fourth quarter paving the way for the introduction of several new strategic products. An independent audit team has returned to North America. Additional details will be filed with audited statements for the new acquisition within several weeks.

Hubei Pharmaceutical Group is engaged in the acquisition of pharmaceutical development, production and distribution facilities in China. Its shares are listed on the Frankfurt Stock Exchange under the trading symbol HUQ and in the United States on the OTCBB under the trading symbol HBEI. The addition of HBBendaJV marks a strategic move into the Biotech field, expands the distribution network into regions not previously serviced and is expected to contribute significantly to revenue and profitability in its first year of operation. Other significant milestones are expected in the near future.

Legal Notice: This press release may contain forward-looking statements, particularly as related to the business plans of the company, that are within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934 subject to the safe harbour created by these sections. Actual results may differ materially from the company's expectations and estimates.

For further information:

Howard Milne, 604-881-2899 ext 220

Fax: 604-881-2892

E-Mail: Howard@HBPharmaGroup.com

http://www.hbpharmagroup.com

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