Singapore, Sep 09, 2010: Skystar, a China-based manufacturer and distributor of veterinary medicines, has acquired a veterinary medicine facility in Hubei Province, China. The company estimates the Hubei facility, will contribute about $4 million to $6 million in revenue in a normalized full fiscal year. The company also estimates that the Hubei facility will be completed by the end of 2010. Blended gross margins for the products anticipated to be made at the Hubei facility are expected to be in the range of 40 percent -50 percent.

The Hubei facility was acquired through the bankruptcy proceedings of a local veterinary manufacturer, and is held under Skystar Biotechnology, a wholly-owned subsidiary of Sida Biotechnology, formed in connection with this acquisition transaction. Skystar Jingzhou became Sida's wholly-owned subsidiary on August 11, 2010, thereby completing the acquisition transaction. Total acquisition cost, including commissions and tooling and other startup costs, was approximately $3.5 million. Skystar Jingzhou's total registered capital is $3.8 million (approximately RMB 26 million). In addition to the physical facility, the company also acquired manufacturing licenses for 103 products covering aquaculture medicines, veterinary medicines and antiseptics as part of the transaction.

The Hubei facility sits on a 28,000 square meter property consisting of one office building, three manufacturing buildings housing three separate production lines, a warehouse and auxiliary buildings. Production has started on some of the 103 approved products.