China Health Holding to Acquire Shaanxi MeiChen Pharma

PharmaManufacturing.com
09/19/2006

China Health Holding, Inc. (CHHH), a developer, marketer and manufacturer of natural herbal supplement products based on traditional Chinese medicine, announced Sept. 18 that CHHH has executed a definitive agreement with Shaanxi MeiChen Pharmaceuticals Co. Ltd. (SMCP) and its shareholders to acquire 100% of SCMP's issued and outstanding stock.

SMCP is a China-FDA-certified GMP-standards pharmaceutical manufacturer based in Shaanxi, China. SMCP has a total lof 27 China-FDA-certified drugs that are distributed to China-FDA-Licensed Hospitals and drug stores across Shaanxi province and China.

CHHH believes the acquisition of SMCP will create incremental value to the Company and its shareholders as a result of the expected contribution from SMCP to the Company's operations and assets. Management believes that by acquiring SMCP, SMCP will obtain established China-FDA-Certified Pharmaceutical Drug GMP manufacturing facilities, gain access to extensive hospital and drug stores distribution channels in China, and obtain the rights to 27 China-FDA-certified pharmaceutical drugs. The Company further believes that, from a strategic perspective, this acquisition will save both time and money as it would have required substantial time and capital investment to gain access to the resources and facilities of SMCP, which the acquisition facilitates for the Company.

About China Health Holding, Inc.

China Health Holding, Inc. has an extensive knowledge of and expertise in the field of Traditional Chinese Medicine, which it uses to develop, manufacture and commercialize natural herbal medicinal products and a comprehensive line of completely natural multi-vitamins and mineral food supplements. The Company's medicinal philosophy includes elements of traditional Taoist teachings and medical research related to the "King of Herbs" and significant herbal plants and minerals.

CHHH's immediate goal is profitable penetration of the growing global and China pharmaceutical industry and market and to seek and develop potential acquisition candidates with major pharmaceutical companies in China and worldwide to secure a strong future and powerful position in the global and China pharmaceutical industry. Long-term plans include the development of a pharmaceutical drug pipeline and technology based on the Company's access to the knowledge of Traditional Chinese Medicine and China pharmaceutical industry.

CHHH is supported by two wholly owned subsidiaries:

1. China Health World Pharmaceutical Corporation, which will develop, manufacture and commercialize natural medications for epidemic diseases and conditions related to mellitus, cardiovascular and cerebral-vascular system dysfunctions, and neurological disorders.



2. China Health World Trade Corporation, which will support CHHH in the areas of worldwide branding, multimedia marketing and multi-channel distribution to global customers and markets.

Recent Developments

CHHH recently entered into letters of intent to acquire 51% or more of the following pharmaceutical companies in China:

• Shaanxi Wanan Pharmaceutical Co. Ltd.
• Henan Tiankang Pharmaceuticals Co. Ltd.

CHHH also has executed a definitive agreement to acquire 60% of Henan Furen Huaiqingtang Pharmaceuticals Co. Ltd.

CHHH believes that the completion of these acquisitions will enable it to vertically integrate its operations from manufacturing, developing and marketing Chinese herbal-based medicinal products, as well as a pharmaceutical drug pipeline, to full distribution and marketing across PR China, therefore substantially increasing profit margins. Acquisitions should accelerate growth of revenues and earnings. A strategic combination of assets, net income, an enhanced pharmaceutical drug pipeline and technologies will accrete value to the Company and its shareholders.

CHHH also recently signed a letter of intent with WangJing Hospital and the WangJing Hospital of China Academy of Chinese Medical Sciences, PR China, in order to develop the China International University of Traditional Chinese Medicine and the University Hospital for Traditional Chinese Medical Sciences.

For more information on China Health Holding, Inc., visit www.chinahealthholding.com.