TIANYIN PHARMACEUTICAL ANNOUNCED ITS 250-TON JIANGCHUAN MACROLIDE FACILITY IS SCHEDULED FOR ITS MANUFACTURING TEST (TPI)

Tianyin Pharmaceutical (NYSE:TPI) announced that its 250-ton Jiangchuan Macrolide facility is scheduled for its manufacturing test runs by the end of July.The test runs prepare the production lines for the final Good Manufacturing Practice certification process by conducting a series of operations and tests under actual or simulated operating conditions to verify its performance, efficiency, reliability and safety of the Azithromycin API manufacturing at JCM.

TPI Discusses Non-Cash Non-Operational Financial Impact from Warrants

Tianyin Pharmaceutical Co., Inc. (NYSE Amex: TPI, the "Company"), a pharmaceutical company that specializes in patented biopharmaceutical medicine, modernized traditional Chinese medicine, branded generics and active pharmaceutical ingredients (API) today discussed the non-cash, non-operational financial impact from the warrants issued in January 2008 under the ASC 815-40-15 (formerly EITF 07-05).In the financial report of Third quarter fiscal year 2011 ending March 31, 2011, the Company has disclosed that under ASC 815-40-15, the Company's accounting treatment of the Series A and B warrants from July 1, 2009 until December 31, 2010 is subject to revisions. Due to the presence of certain anti-dilutive (down round protection) clauses in both warrants during the above period, these financial instruments have been re-categorized as liabilities while they were previously treated as equity.On January 14, 2011, these anti-dilutive clauses in both series of warrants were removed therefore the warrants were re-categorized as equity in the third quarter of fiscal year 2011 while the accounting issues related to the warrants ceased to exist.Based on the warrants' exercise data and weighted valuation, the Company has calculated the non-cash impact for the fiscal year 2010 and the first two quarters of fiscal year 2011. The analysis indicated thatThe non-cash impact from the warrants for fiscal year 2010 ending June 30, 2010 was a loss of ($0.16) million, or (1.07%) to pretax net income of $14.7 millionThe non-cash impact from the warrants for the first two quarters of fiscal year 2011 was a gain of $1.28 million, or 12.9% to net income for the first two quarters of fiscal year 2011 of $9.9 million.Management and the Board of Directors of the Company discussed this matter with the Company's principal accountants and decided to amend the Company's Form 10-Qs for the quarters ended September 30, 2010, December 31, 2010 and March 31, 2011 reporting periods including the comparative prior year period in these filings to reflect the non-cash, non-operational financial impact from the reclassification of the Warrants. The Company will also make corresponding revisions to its financial statements for the fiscal year ended June 30, 2010 in the Form 10-K for the fiscal year ended June 30, 2011.

Tianyin to Attend Lazard Capital Markets 7th Annual Healthcare Conference on November 16 - 17, 2010

Tianyin Pharmaceutical Co., Inc. (NYSE Amex: TPI | PowerRating), a pharmaceutical company that specializes in patented biopharmaceutical medicine, modernized traditional Chinese medicine, branded generics and other pharmaceuticals will attend Lazard Capital Markets 7th AnnualHealthcare Conference from November 16 - 17, 2010 at the St. Regis Hotel in New York.

Dr. James Jiayuan Tong, Tianyin's Chief Financial Officer, Chief Business & Development Officer and Director is invited to present at 2:45 pm on November 17, at Fontainebleau of the St. Regis at 2 East 55th Street, New York, NY 10022.

About Tianyin Pharmaceuticals

Tianyin Pharmaceutical Co., Inc., headquartered at Chengdu, China, is a pharmaceutical company that specializes in the development, manufacturing, marketing and sales of patented biopharmaceutical medicine, modernized traditional Chinese medicines, branded generics and other pharmaceuticals. Tianyin currently manufactures a comprehensive portfolio of 56 products, 23 of which are listed in the highly selective national medicine reimbursement list, 7 are included in the essential drug list of China. Tianyin currently has a pipeline of 10 late stage products pending the SFDA approval that target various high incidence healthcare indications. Tianyin has an extensive nationwide distribution network with a sales force of 730 sales representatives out of totaled 1,365 employees.

Tianyin Pharmaceutical Co., Inc. - Detailed Product Pipeline - companiesandmarkets.com adds new report

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Tianyin Pharmaceutical Reports 3Q 2009 Financial Results

Tianyin Pharmaceutical Co., Inc., a manufacturer and supplier of modernized traditional Chinese medicine (TCM) based in Chengdu, China, announced fiscal results for its third quarter ended March 31. 

In a release on May 15, the company noted that revenue for the third quarter of 2009 increased 7.4 percent to approximately $9.9 million compared to $9.2 million for the third quarter of 2008. The slowdown in year-over-year growth was due to capacity production constraints and longer lead times into the distribution channels as new drugs were commercialized.

Cost of goods sold for the three months ended March 31, was approximately $5.1 million or 51.1 percent of revenue as compared to $5.1 million or 55.4 percent of revenue for the three months ended March 31, 2008, yielding a gross profit of $4.9 million and gross margins of 48.9 percent, compared to $4.1 million in gross profit and a margins of 44.6 percent during the third quarter of fiscal 2008. Thus, gross profits grew by 17.8 percent on a year-over-year basis as a result of higher sales, while margins improved through the optimization of product portfolio and enhanced cost controls implemented during the manufacturing process.

Operating expenses for the three months ended March 31, were approximately $2.6 million, up 13.1 percent compared to the same period in 2008. Selling, general and administration expenses for the period increased to approximately $2.5 million from $2.2 million in the third quarter of 2008 as a result of the implementation of Tianyin's sales and marketing strategy, including increased sales payrolls and direct marketing expenses. Research and development expenses were nearly flat at $0.1 million for the three months ended March 31, compared to the year ago period.

Operating income for the third quarter of 2009 totaled approximately $2.3 million, a 23.5 percent increase from the $1.9 million reported for the third quarter of 2008. Operating margins were 23.1 percent and 20.1 percent for the third quarter of fiscal 2009 and fiscal 2008, respectively and were the result of increased revenues and gross profit, along with the prudent management of operating expenses.

Net income was approximately $1.9 million in the third quarter of fiscal 2009, a 48.8 percent increase, compared to $1.3 million for the third quarter of 2008. The company had an effective tax rate of 16.7 percent and 20.9 percent, for the third quarter of fiscal 2009 and 2008, respectively. Diluted earnings per sharewere $0.10 compared to $0.05 for the third quarter of fiscal 2009 and fiscal 2008 respectively, based upon 16 million and 24.5 million shares. The divergence in the share account relates to accounting for the company's preferred shares which are convertible into common.

Nine Month Results

For the nine months ended March 31, revenues increased approximately 22.4 percent to $29.6 million compared to the same period in 2008. Gross profit was $14.9 million for the first nine months of 2009, representing an increase of 46.3 percent from the first nine months of 2008. Gross margins were 50.3 percent for the first nine months of 2009 compared to 42.1 percent for the same period in 2008.

Income from operations was $6.9 million for the first nine months of 2009, representing an increase of 22.7 percent over the first nine months of 2008. Operating margins were at 23.4 percent for both nine month periods, respectively. Net income was $5.7 million for the nine months ended March 31, an increase of 29.2 percent from the same period in 2008. Diluted earnings per share were $0.23 compared to $0.27 for the first nine months of 2009 and 2008 respectively, based up on 25 million and 16.7 million shares.

"We are pleased to report another quarter of revenue growth and improved profitability. While revenue growth was impacted by capacity constraints, we are very enthusiastic about the launch of our new production facility which is expected to be online during the summer of 2009," said Dr. Guoqing Jiang, Tianyin's Chief Executive Officer. "The Chinese government recently announced that it will significantly increase the overall investment in the Traditional Chinese Medicine (TCM) sector while implementing favorable policies to accelerate the development of new drugs, which we believe will provide a solid foundation for sustained future growth. Companies like Tianyin will be a beneficiary of this enhanced government support, which includes China's $123 billion health care reform plan focused on bringing a broader spectrum of services and pharmaceutical products to all Chinese residents. We are confident that our extensive product portfolio and drug pipeline, proven sales and marketing capabilities, and committed management team will enable us to accelerate our growth and capitalize on a long-term, secular growth opportunity."

Balance Sheet and Cash Flow

Cash and cash equivalents and restricted cash totaled $10.7 million on March 31, compared to $12.1 million on June 30, 2008. The Company had a current ratio of 5.8 to 1 and stockholders' equity of 39.2 million, with total assets of $42.9 million versus total liabilities of $3.8 million on March 31. For the first nine months of 2009, the Company generated $4.4 million in cash from operations versus $1.8 million for the same period in 2008.

Business Development

On January 30, Tianyin began initial purchases under its previously announced stock repurchase program to buy back up to $3.0 million of its common stock. These shares will be retired to the treasury while reducing the number of outstanding common shares. As of March 31, 79,285 shares have been bought back at prevailing market prices.

During the third quarter of fiscal 2009, Tianyin adopted the "Cost Preference Strategy" for Azithromycin Dispersible Tablets which could yield over $3.7 million in incremental revenues on an annual basis in the future.

On March 26, Tianyin announced that the Board of Directors declared an annual cash dividend of $0.10 per common share that will be paid quarterly. On April 14, the majority of the Company's Series A Preferred Shareholders approved the cash dividend to common stockholders. The initial dividend of $.025 will be paid to common shareholders of record on April 30, with the actual distribution occurring on or about June 10. The decision was made so the company could provide its common shareholders with ongoing participation in company profits while ensuring that adequate capital was available for future growth.

During the quarter, Tianyin completed installing the steel framework and roofing of the new production facility with production expected to commence in the summer of 2009. The Company recently completed the construction and began testing its production line recently. The new plant will expand production capacity of solid dosage drugs by 300 percent and will be utilized to meet growing demand for the Company's current products, while also accommodating new product launches for those in the development pipeline.

During the first nine months of fiscal 2009, Tianyin received ten new approvals from the SFDA to produce Laonian Kechuan Tablet (SFDA approval number H2008S02059), Fuke Zhidai Tablet (SFDA approval number Z20083375), Tongbianling Capsule (SFDA approval number Z20083424), Baotailing Tablets (SFDA approval numberZ20093087), Duyiwei Dispersible Tablets (SFDA approval number Z20090239), Compound Dantong Capsules (SFDA approval number Z20093012), Mycophenolate Mofetil Capsule(SFDA approval number H20080819), Tongqiao Biyan Tablets(SFDA approval number Z20093063), Child Qingrezhike Oral Liquid(SFDA approval number Z20093060), Yiqing Capsules(SFDA approval number Z20093084). In addition, Tianyin currently has 17 drug candidates under the Chinese State Food and Drug Administration (SFDA) review.

"We are making progress on all aspects of our business. We have completed construction of the new production facility and are in the testing production phase. As of today, we have successfully tested most equipment and anticipate finishing this phase by the end of May 2009. The tripled capacity of solid dosage drugs will accommodate increasing production volumes and expected future growth. In addition, we received ten approvals from the Chinese State Food and Drug Administration (SFDA) during the first nine months of fiscal 2009. The increased production capacity and new additions to our production portfolio, along with other initiatives, have set a foundation for long-term growth and profitability of our business. We will continue to execute our growth plan and maximize value for our shareholders," concluded Dr. Jiang.

Business Outlook

Management is confirming fiscal 2009 guidance for the year which ends June 30 and expects to report revenues of more than $46 million and net income of at least $7.5 million, representing 37.3 percent and 25 percent year over year growth respectively.

Tianyin Pharmaceutical Co. Inc.'s Ginkgo Mihuan Oral Solution Completes 2009 Tenders

CHENGDU, China, Tianyin Pharmaceutical, Co., Inc., (NYSE Amex: TPI), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced that it has completed the new round of tenders for its proprietary Ginkgo Mihuan Oral Solution for the year 2009 in China.

In China, medical organizations and institutions invite tenders from various pharmaceutical manufacturers annually, which is a critical component of the sales process. During the second half of 2008, medical organizations and institutions initiated the 2009 tendering process for pharmaceuticals throughout China. Tianyin's flagship product, Ginkgo Mihuan Oral Solution, has successfully completed this process and received recognition from medical institutions such as hospitals and clinics, and market experts who were in charge of the tender process. The tender covers most provinces and cities in China and will improve the sales process, while improving the overall margin. During the second quarter of fiscal 2009, which ended December 31, 2008, Ginkgo Mihuan contributed approximately 25.7% to total revenues for the quarter with associated gross margins of approximately 74%.

In order to further increase the concentration of its commercial customer base and streamline the sales and distribution process, Tianyin's sales department is focusing its efforts on consolidating the Company's provincial distributors. Those who exhibit strong regional advantages, including a large footprint, higher capacity and larger order history will be chosen as "First Tier" provincial distributors. This group of distributors will purchase products directly from Tianyin and be responsible for selling to sub-distributors and dealers who previously purchased directly from the Company. Simultaneously, Tianyin is decreasing payment terms for remaining commercial customers who do not meet "First Tier" criteria; previously, payment terms for smaller customers was over 60 days despite order size or product mix, now it will be less than 60 days. Tianyin has also offered small discounts for pre-payment of orders to increase cash flow and reduce days sales outstanding ("DSO"). For the quarter ended December 31, 2008 Tianyin had DSO's of 41.

"We are very pleased to complete the tenders for our flagship product Ginkgo Mihuan Oral Liquid as our focused sales and marketing efforts have successfully generated awareness in many of our key pharmaceutical markets in China and added revenues to our performance year to date. We expect these initiatives will enable us to further increase our market share for this key product, while contributing to revenue growth and improving profit margins during fiscal 2009. We also expect to secure 2009 tenders for other major products," Dr. Jiang Guoqing, Tianyin's Chairman and CEO commented. "In addition, our initiatives to streamline distribution, improve payment terms and the quality of our commercial customers is aimed at reducing risk while improving cash flow and customer satisfaction. We continue to grow our business by deploying the correct strategies at the right time. We have begun to witness improvements in both accounts receivable and working capital, which will further improve an already strong balance sheet. We are dedicated to growing our business intelligently and creating tangible returns for our shareholders."