YANTAI, China, Jan. 31, 2011 /PRNewswire/ -- Bohai Pharmaceuticals Group, Inc. (OTC Bulletin Board: BOPH), a China-based pharmaceutical company engaged in the production, manufacturing and distribution of Traditional Chinese Medicine (TCM), today announced that the company has received a two-year government research grant totaling $144,000 (RMB 950,000) to fund the research and development of Menstrual Relief Tablet, a traditional Chinese medicine (TCM) for dysmenorrhea, or menstrual pain, currently in early-stage clinical development.

The grant includes $91,000 (RMB 600,000) from the Ministry of Science and Technology of the People's Republic of China and $53,000 (RMB 350,000) from the Yantai local government. The grants are being given to companies to encourage the modernization of TCM drug-development in a manner more aligned with the typical development pathway of Western medicines.

Hongwei Qu, Chairman, President and CEO of Bohai Pharmaceuticals, stated, "We are very pleased and grateful to have received these grants, not only because they will support our advancement of a new product, but also because the funding demonstrates the Chinese government's commitment to the healthcare system in China as well as its support of TCM."

"The Chinese government is working to resolve quality and efficacy issues surrounding raw and finished Traditional Chinese Medicine products with the help of partners like Bohai," continued Mr. Qu. "The government has drafted new quality initiatives designed to improve the reception of TCM products in the global marketplace. We are pleased that the Chinese government has recognized Bohai's commitment to superior research and the development of high-quality TCM drugs in China. The Menstrual Relief Tablet enhances our TCM pipeline and maintains Bohai's strategy to continue to seek products with significant demand and sales opportunity."

Dysmenorrhea, or menstrual pain, is defined as recurrent, cramping pain in the lower abdomen occurring just before or during menstruation. It is estimated that approximately 64% of women in China purchase menstrual pain drugs on regular basis, creating an estimated $3 billion market for these medicines in China. Once clinical development is completed, and assuming government approval, Bohai's Menstrual Relief Tablet is expected to compete in this market.

About Bohai Pharmaceuticals Group, Inc.

Based in the city of Yantai, Shandong Province, China, Bohai Pharmaceuticals Group, Inc. (OTCBB/OTCQB: BOPH) is engaged in the production, manufacturing and distribution of herbal pharmaceuticals based on Traditional Chinese Medicine in China. Bohai's medicines address common health problems such as rheumatoid arthritis, viral infections, gynecological diseases, cardio vascular issues and respiratory diseases. Bohai's products are sold either by prescription through hospitals or over-the-counter through local pharmacies and retail drug store chains. Bohai has approximately 600 employees, including approximately 300 sales representatives, operating from 20 offices throughout China. Bohai's lead products, Tongbi Capsules and Tablets and Lung Nourishing Cream, are eligible for reimbursement under China's National Medical Insurance Program.

For additional information, please visit Bohai's corporate website: www.bohaipharma.com.

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Cautionary Note Regarding Forward Looking Statements

This press release and the statements of representatives of Bohai Pharmaceuticals Group, Inc. (the "Company") related thereto contain, or may contain, among other things, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including any other statements of non-historical information. These forward-looking statements are subject to significant known and unknown risks and uncertainties and are often identified by the use of forward-looking terminology such as "guidance," "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "ultimately" or similar expressions. All forward-looking statements involve material assumptions, risks and uncertainties, and the expectations contained in such statements may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including factors and risks discussed in the periodic reports that the Company files with the Securities and Exchange Commission (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. The Company undertakes no duty to update these forward-looking statements except as required by law. Readers are cautioned that market size estimates have been determined on the basis of market research, but no assurances can be given that such estimates are accurate.


    CONTACTS:
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    Company Contact:
    Bohai Pharmaceuticals Group, Inc.
    Gene Hsiao, Chief Financial Officer
    856-499-4475

    Investor Relations:
    The Trout Group
    Danielle Spangler
    646-378-2924

SOURCE Bohai Pharmaceuticals Group, Inc.