China Sky One Medical (PINK:CSKI)

On February [18], 2012, Mr. William Wei Lee, a director of China Sky One Medical, Inc. (the “Company”) and Chairman of the Company’s Audit committee and member of the Company’s Compensation Committee and Finance Committee [sent a letter to MSPC, the Company’s auditors notifying them that he] resigned from his positions with the Company. Mr. Lee advised the Company that he is resigning because (i) he finds it difficult to get in touch and communicate with the Company’s finance people, so as to carry out his responsibilities as a board director and (ii) he is fully occupied with his own business. [Mr. Lee also stated that the truth is that since Chairman Liu’s illness, CSKI is in a state of total chaos, making it simply impossible for him to do anything as a board member.]

HARBIN, China, Feb. 15, 2012 /PRNewswire-Asia/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (NASDAQ: CSKI), a fully integrated pharmaceutical company in the People's Republic of China ("PRC"), today announced that Mr. Yanqing Liu, the Company's Chairman, President and Chief Executive Officer, is being treated for a life-threatening illness. Following surgery, he is expected to undergo long-term chemotherapy and traditional Chinese medicine treatments. As a result, Mr. Liu's availability to devote time to the Company's business will be substantially reduced.

Recently, 26 middle-management level employees have resigned, of which nine were in the accounting department, two were in the internal control department, two were in the information technology department, 11 were in the sales department, and two were in the production center. Although the Company is seeking to recruit personnel, it may not be able to hire qualified personnel in a timely manner, or at all.

Mr. Liu's health concerns and the loss of such management employees are likely to materially adversely affect many aspects of the Company's business, including its ability to maintain customer relationships, meet production schedules, as well as maintain its internal controls.

HARBIN, China, Feb. 22, 2011 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc., today provided an update regarding its progress in amending financial reports previously filed with the State Administration for Industry and Commerce ("SAIC"), the PRC governmental agency responsible for issuing and renewing the Company's business license.  

According to the Company, corrected financial reports for 2007, 2008 and 2009 have been submitted to the local SAIC offices in the jurisdictions in which the Company's subsidiaries are located. The Company believes that the financial information included in the amended reports is consistent with the information included in reports filed by the Company with the U.S. Securities and Exchange Commission. As previously reported, the Company believes that, should the SAIC impose a penalty in connection with amending these financial reports, such penalty will not be material.

Liu Yan-qing, the Company's Chief Executive Officer, stated, "We always endeavor to follow all relevant rules and regulations when conducting our business, both in the PRC and abroad. If, on occasion, we become aware that an error was made, we seek advice of professionals to determine the appropriate course of action to correct it, and will continue to do so in the future."