Healthstar has current revenues in the order of US$500,000 per week which is forecast to substantially increase in 2007 as the company releases three new products that have gained SFDA approval for marketing in China.

These three new products comprise:

--  A cancer treatment drug having specific application to liver cancer as
    well as other cancers.  It has been in development for approximately 8
    years and has a target market of over 450,000 new cases of liver cancer
    diagnosed in China each year.

--  An osteoporosis treatment that can significantly increase bone mineral
    density as well as promote new growth.  The prevalence of osteoporosis in
    China represents a massive market with approximately 20% of all females and
    11.5% of males over 40 affected.

--  A hemostatic product that can be effective for controlling excessive
    bleeding or traumatic hemorrhage, especially in surgical practice.
    

Healthstar products are marketed throughout China in a joint marketing relationship with Sinopharm, China's largest pharmaceutical distributor.

Healthstar facilities include a new state of the art 10,000 sq ft R&D Centre and 1.36 million sq ft of new, GMP certified high capacity pharmaceutical manufacturing space in Liaoning and Beijing which have the capacity to produce over 300 tons of granule product, 400 million capsules, 400 million lozenges, 150 million tons of pills and multi-million dosage units of other products.

The acquisition consideration comprises a total 80 million shares. The Company is in process of arranging a placement to raise $4 million with a further $12 million to be raised later in 2007 through a planned listing on the London AIM market which is currently in negotiation with UK advisory and brokerage interests.

Safe Harbor Statement

The information in this release, other than historical information, may be considered forward-looking statements within the provisions of the Private Securities Litigation Reform Act of 1995. Projection and other forward-looking statements and management expectations regarding future events and/or financial performance of the Company -- although given in good faith -- are inherently uncertain and actual events and/or results may differ materially.