Skystar's New Vaccine Facility In Huxian Passes Initial GMP Certification

New Vaccine Facility Includes Animal and Aquaculture Vaccine Lines; At Maximum Potential Production Capacity, the New Facility Is Projected to Be Capable of Manufacturing an Estimated $15 Million to $17 Million of Combined Annual Revenue

Xi'an, Shaanxi (Marketwire) - Skystar Bio-Pharmaceutical Company (NASDAQ: SKBI) ("Skystar" or the "Company"), a China-based manufacturer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today announced that China's Ministry of Agriculture (MOA) Good Manufacturing Process "GMP" experts have certified that Skystar's new vaccine facility in Huxian, China is 'Stage 1' GMP compliant. A public record of the MOA Inspectors' decision is posted on the China Institute of Veterinary Drug Control's website at: http://www.ivdc.gov.cn/zzys/gmpys/201209/t20120924_39284.htm.

The inspection team has recommended to the MOA's Office of the Working Committee that it should go forward with Stage 2 of the GMP certification process. Stage 2, the final stage of the GMP certification process, requires production line samples of the Company's various vaccine products to be submitted to the MOA for testing. The Committee will then determine if the production line samples meet current GMP production standards. At the successful completion of this process, Skystar must then apply for and receive drug control numbers for each product before vaccine production at the new facility can begin.

At maximum potential production capacity, the new facility is projected to be capable of manufacturing an estimated $15 million to $17 million of combined annual revenue with gross margins near 70% on an annual basis. The Company anticipates launching 10 new vaccine products in 2013 and a total of 20 to 30 products in total over the next 5 years.

Mr. Weibing Lu, Skystar Bio-Pharmaceutical's Chairman and Chief Executive Officer, commented on the foregoing: "The Company is moving its newly built vaccine plant towards full GMP certification. The increased manufacturing capability will play an integral part of Skystar's growth strategy in the upcoming years as the Company focuses on expanding its footprint, customer base and verticals."

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About Skystar Bio-Pharmaceutical Company
Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, micro-organisms, vaccines and feed additives) and over 284 products. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit http://www.skystarbio-pharmaceutical.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the Company's ability to receive timely certification and related government approvals, its ability to reach full production capabilities as projected and to capitalize and generate expected revenue following GMP certifications, its ability to continue additional sales and related expenses in connection with the anticipated increased production levels effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.