Kun Run Biotech (PINK:KURU)

• Revenues for the three months ended September 30, 2010 were $2.50 million, representing a decrease of $1.55 million, or 38% over revenues for the same period of 2009.

• Net income decreased by 75% to $508,152 for the three months ended September 30, 2010 from $2.05 million for the same period of 2009 due to reduced revenue and increased costs and expenses as described above.

• Earnings per share for the three months ended September 30, 2010 was $0.02 per share for both basic and diluted shares, compared with $0.08 per share for both basic and diluted shares for the same period of 2009.

In July 2010, the company received a notice from the Hainan Food and Drug Administration that the agency would investigate certain products of the Company due to production procedure concerns and at the same time the GMP license of the Company would be suspended until the investigation is concluded. As result of the notice, the Company ceased its production of all products. Most of the products’ sales were from stockpile.