China BCT Pharmacy Group, Inc., (OTC Bulletin Board: CNBI), ("China BCT" or the "Company"), a leading pharmaceutical distributor, retail pharmacy, and manufacturer of pharmaceutical products in Guangxi Province, China, today announced that it has further expanded its retail network across Guangxi by opening 12 new retail pharmaceutical stores.

With an average size of 79.4 square meters, the new stores are located in highly populated and well attended locations, primarily in Liuzhou, Guilin, Nanning and Laibin cities. With a total expected capital investment of approximately $360,000, the average payback period of these stores is anticipated to be approximately 2.5 years. Management expects that these stores will generate approximately $2.2 million annually.

The stores will operate under the "Baicaotang" brand name and offer a diversified range of pharmaceutical products including nutraceuticals, cosmetics, Chinese herbal medicine and a limited number of the Company's private label pharmaceutical products. The Company has conducted comprehensive training to its staff in order to provide customers with accurate product information. So far, China BCT has attracted new recruits who possess professional knowledge related to the medical field.Currently, the new stores are in their final stage of renovation and are expected to become fully operational by the end of July 2010. Management believes that the new stores will contribute approximately $930,000 to the Company's consolidated revenue in fiscal year 2010.

"In terms of retail footprint expansion, we deploy a two-pronged strategy which involves acquisitions and opening new stores," said Mr. Hui Tian Tang, Chairman and Chief Executive Officer of China BCT. "We believe this complementary approach is particularly effective. It enables us to establish our footprint in key locations by opening our own retail stores and allowing us to build upon existing sales of the stores we acquire by utilizing our renowned brand name."