Wiekang Biotech Investor Presentation, June 2010

WEIKANG BIO-WEIKANG BIO-TECHNOLGY GROUP CO., TECHNOLGY GROUP CO.,

INCINCInvestor Investor Presentation 2010Presentation 2010

OTCBB: WKBTOTCBB: WKBT

www.weikangbio.comwww.weikangbio.com

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In accordance with the 1995 Securities Litigation Reform Act of the "exemption"

meaning, this statement documents contain "forward-looking statements". This

statement related to understand and unknown risks, uncertainties and other

factors will cause the company’s statement not match by the results, in which

including sales and regional economic conditions and competitive conditions,

customer relation Changes, access to capital, the difficulty of promoting new

products, existing products market conditions, customers for the existing and new

product awareness and other factors. Relevantly, the company believed that the

results is reasonable in this forward-looking statements ， but can not guarantee

that the forecast entirely correct. There is no duty that company to update the

forward-looking information contained in this statements.

Safe Harbor Statement

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It has two subsidiaries:Heilongjiang WeiKang

Chinese herbal-based health and nutritional supplements and therapeutics

Brand name "Rongrun" Founded in 2005210 employees

Guizhou TianFang Develops, manufactures and distributes

Chinese herbal extract products and GMP certified western drugs

300 employeesAcquired in 2008, founded in 1998

Weikang Bio-Technology Group is a leading developer, manufacturer and marketer of

Traditional Chinese Medicine (TCM)Western prescription and OTC pharmaceuticalsOther health and nutritional products

Weikang Bio-Technology Group is a leading developer, manufacturer and marketer of

Traditional Chinese Medicine (TCM)Western prescription and OTC pharmaceuticalsOther health and nutritional products

Company Overview

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$7.30

$15.64

$3.85

$5.45

2008 2009 3 months 2009 3 months 2010*

OTCBB: WKBT

Price (as of 6/3/2010) - $3.25

Shares outstanding - 27.4 M

Market capitalization - $88.9 M

TTM revenue - $51.3 million

TTM net income* - $17.2 million

TTM fully diluted EPS* - $0.66

Insider ownership 88%

Revenue (m)

Net Income (m)

$12.85

$47.48

$10.11$13.96

2008 2009 3 months 2009 3 months 2010

* Proforma – excluding non-cash expense of $912,000

41.5% y/y increase

38.1% y/y increase

270% y/y increase

115% y/y increase

Financial Snapshot

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Rapid revenue and net income growth

Expanding portfolio of high margin, original SFDA approved products

Strong R&D capability and investment ensure a strong pipeline - targeting launching 2-3 new products a year

GMP-certified manufacturing lines scalable up to $107 million in annual production

Acquisition strategy enhances growth opportunity

Managed by pharmaceutical industry experts

Attractive valuation

Investment Highlights

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China’s pharmaceutical market is currently the 5th largest in the world

Expected to grow to the 2nd largest by 2020 and the largest by 2050

Medical expenditure ranks the 3rd after food and education*

Government stimulus package expands New Rural Cooperative Medical System

Investing USD $124 billion (2009-2011) with earmarks to improve insurance coverage

Building 30,000 township hospitals and 700,000 village clinics with estimated annual increase in supply purchase of 42% from these over the next 5 years

Fragmented industry, dominated by local enterprises, creates opportunity for consolidation

Approximately 70% of the market supply is provided by small, local pharmaceutical companies**

*DOH Survey, 12/2/2004**Economy Watch

Attractive Industry Dynamics

Preventative Healthcare

Preventative medicine is the primary source of medical care for 700 million rural Chinese who cannot afford adequate healthcare*

Patients generally have to pay 50% - 60% of healthcare expense out-of-pocket

Out-of-pocket healthcare expenditures increased from 25% in 1990 to 58% in 2006**

Middle class consumers risk spending all of life savings on medical expenses

Private health insurance uncommon

Preventative care will remain important as universal coverage to be implemented in 2011 will only cover basic medical services

* factsanddetails.com, April 2010** China’s Ministry of Health

The best doctor treats the problem before the problem becomes the disease ~

Old Chinese medical proverb

The best doctor treats the problem before the problem becomes the disease ~

Old Chinese medical proverb

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Consumers 60 years old and above

Approximately 170 million Chinese over 60 years old

Aging population regularly takes supplements to improve health condition

Population with regular / chronic health problems

70% of the population estimated to have some degree of health problems

Increasing health problems associated with modern industrial life including diseases related to stress and obesity

Consumers interested in preventative health care

Weikang’s Target Market

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TianFangProduct portfolio of Western medicine and TCMEight products in the market

Seven SFDA approved drugs Average gross margin 48.5%Two SFDA approved product expected to be launched Q3 and Q4

WeiKangProduct portfolio of TCMSeven SFDA approved nutrient medicines on the marketSeven SFDA approved product expected to be launched Q3 and Q4 Three drugs in pipeline Average gross margin 66.1%

High Margin Portfolio

Tiangfang, 71.87%

WeiKang, 28.13%

% Sales by subsidiaries (2009)

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Product Main Function% of 2009 Revenue

Gross Margin

Ferrous Fumarate Granule

Treats iron deficiency anemia 24.24% 51.28-54.39%

Eucommia

Ulmoides Oliv Granule

Nourishes the liver and kidney

Strengthens muscles and bones23.26% 46.25-49.03%

Tinidazole Vaginal Effervescent Tablet Treats bacterial infections in the female

reproductive system 14.87% 39.76-43.55%

Bushen Qiangshen Tablet

Nourishes the liver and kidney

Enriches yin, strengthens yang

Enhances health and brain function

7.85% 63.37%

Ranitidine Hydrochloride Capsules

Intended to treat duodenal ulcers, gastric ulcer, reflux esophagitis, Zollinger-Ellison syndrome, and other symptoms with gastric acid overproduction

1.66% 11.24%

TianFang’s Product Portfolio

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Product Main Function% of 2009 Revenue

Gross Margin

Rongrun Youth Keeping Capsules

Promotes the restoration of the natural balance of female hormones during menopause

3.78% 66.55%

Rongrun Energy Keeping Capsules

Reduces free radicals and oxidative stress

Intended to reduce the risk of cardiovascular disease

3.75% 66.55%

Rongrun Vitamin Sugar Capsules

Reduces the onset of cardiovascular disease and fatigue for diabetics

Promotes healthy aging4.11% 64.43%

Rongrun Intestine Cleansing Capsules

Lowers blood lipid levels in order to reduce the likelihood of brain and heart vessel related diseases

Strengthens immune system

3.84% 66.55%

Rongrun Artery Cleansing Capsules

Reduces cholesterol level in arteries

Promotes healthier heart and brain functions

3.95% 65.74%

Rongrun Royal Jelly Extract

Immuno-regulatory

anti-cancer properties4.63% 61.73%

Rongrun Kidney Boost Tonic

Strengthen and promotes a healthy kidney 4.06% 71.93%

WeiKang’s Product Portfolio

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Ten drugs in various stages of approval from the SFDA

Top R&D projects include

10-HDA

Has anti-cancer properties and is used in the treatment of radiation sickness and angiocardiopathy

Received SFDA approval and expected to launch in 3Q 2010

ShuangBaoGu ( a variety of mushroom

grown on a salty land)

Provides several health benefits including the prevention and treatment of cardiovascular disease

Production expected to begin by end of 2010

DofetilideUsed to treat atrial fibrillation (irregular heartbeats)Approved for clinical test

Licorice Flavonoid Project

Develop therapeutic properties of glycyrrhize acid Treated conditions and afflictions includes allergies, hepatitis,

inflammation and swelling, including peptic ulcers hypertension, excessive potassium in the body, skin conditions, viral infections, tumor formation and cancer, specifically breast cancer, weight loss

KangYuan Antidepressant

Capsules

A herbal based medicine effective in treating depression Has passed several stages of testing and ready for clinical trials Estimated R&D expenditure $71,000

Strong Pipeline

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Total sales network covers almost the whole country via two modes of distribution: exclusive distributors and wholesale drug trading firms

WeiKang’s products are sold in five provinces and Beijing through six distributors

TianFang’s products are sold nationwide through over 60 dedicated sales agents, based in 33 cities

Integrating TianFang’s distribution channels and logistics with WeiKang to achieve synergy and economies of scale

Plans to build a national logistic chain system for medicine distribution by 2012

Extensive Distribution Network

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Distribution channels: Clinical, through doctors and hospitals mostly prescription and OTC drugsRetail pharmacies, mostly OTC drugsSupermarkets, food and nutrition stores, mostly TCM based therapeutics Third party sales outlets, such as rural medical centersConference sales and Internet orders

WaiKang plans to expand the distribution to 3 northeast provinces and to south and southwest provincesConsolidate and share the channels for both WeiKang and TianFang productsOpen bidding for new dealerships from potential distributors

Sales and Distribution

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Direct mail pamphlets to seniors

Includes consultation information

Emails to younger and busy urban residents

Provides information on company products and web based ordering platform

Free delivery services in northern cities during winter season

Strong brand name advertising for TianFang OTC drugs

Partnership with wholesalers

Regular promotions

Product information forums

Incentive schemes

Plans for future acquisitions that can

expand sales channels

Sales and Marketing Strategies

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WeiKang has six production lines

TianFang has three production lines

Highest quality equipment with national GMP certification

Unique technology synthesizes raw materials

Ensures quality and effectiveness of therapeutics

Helps reduce costs and enhance gross margins

Scalable production lines

Up to USD $107 million of potential annual production capacity

WeiKang & Tianfang production rate at 35% & 50% of total capacity, respectively

Production capabilities

Capsule Oral liquid

Granules Gel and soft paste

Tablets Powder

Production Facilities

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Dr. Zhengbin Xu, M.D head of R&D Over 40 years of clinical and research experience in TCMPublished 56 articles in international and domestic journals

Professional affiliations with The China Medicine Research Institute Heilongjiang Chinese Medicine Co., Ltd.The Chinese Medical Association

R&D team composed of 16 industry experts Received 4 national awards

Advanced R&D done in collaboration with Northeastern Forestry University and Tianjin University Two drug testing facilities

Shuangcheng, 246 Sq Meters, GMP compliantGuizhou TianFang, GMP certified

R&D Capabilities

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Organic

Committed to R&D of new products and improving existing product portfolio to secure and expand market share

Diversify vertically into growing herbal and other raw materials to secure supply and lower cost

Increase spending for advertising and continue building brand

Acquisition

Target companies that broaden product portfolio and expands distribution network

TianFang acquisition expanded distribution network nationwide

Expand and improve product portfolio with TCM, WM, therapeutics and nutraceuticals

Growth Strategy

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Yi Wang – CEO and Chairman, Founder  Weikang CEO since 2002 Physician of over 30 years with extensive clinical experience and bio-medical research experienceServed as Director of Harbin Geriatric Hospital and Harbin Chinese Medical HospitalMBA from Beijing UniversityMaster in Medical Science, Harbin Medical University

Yanhua Liu – CFOCFO of WeiKang since July, 2005 and a China CPA20 years of experience of Finance and Accounting Bachelor in Finance, Heilongjiang Agricultural and Mechanical College

 Zhengbin Xu – Chief Technology Officer

CTO of Weikang since July 2007 40 years of clinical and research experience on Traditional Chinese Medicine and Nutrition Publish 56 research papers on international and domestic journals Graduate of Northwest University of China.Vice President of China Medical Association.

 Bing Wei - Chief Marketing Director

Joined in Weikang in 2005 Bachelor’s degree from Harbin Commerce University

Experienced Management Team

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$m

$0.82

$12.85

$47.48

$10.11

$13.96

2007 2008 2009 3 months 2009 3 months 2010

Increasing Revenue

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$m

$0.43

$8.27

$25.84

$5.65$8.32

59.6%54.4% 55.9%64.3%

52.6%

$0

$10

$20

$30

2007 2008 2009 3 months 2009 3 months 2010

0%

40%

80%

Gross Profit Gross Margin

Strong Gross Margin

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$m

$7.30

$15.64

$3.85$5.45

-$0.45

56.6%

39.0%

-54.7%

32.9% 38.1%

-$6

$0

$6

$12

$18

2007 2008 2009 3 months 2009 3 months 2010

-80.0%

-40.0%

0.0%

40.0%

80.0%

Net Income Profit Margin

Increasing Net Income

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USD in millions Dec. 31 2009 Mar. 31 2010

Cash and Equivalents $11.4 $18.1

11.7 19.5

Current Liabilities 10.5 10.8

Long-Term Debt 0.0 0.0

Shareholder's Equity 23.4 31.1

Current Assets

Balance Sheet Highlights

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CompanyTicker

(Exch)Price

(6/8/10)Market Cap

(mm)Revenues

2009 (mm)

Net Income

2009 (mm) Y/Y Net

Income %Y/Y

revenue %PE

(TTM)

Weikang Bio-Technology

WKBT(OTCBB)

$2.79 $76.45 $47.4 $15.6 116.67% 270.31% 4.5

Biostar Pharmaceuticals

BSPM

(OTCBB)$3.23 $83.42 $53.3 $10.5 56.95% 57.24% 9.8

Renhuang Pharmaceutical

RHGP

(OTCBB)$2.00 $74.47 $43.4 $14.8 43.69% 3.67% 4.7

American Oriental Bioengineering

AOB

(NYSE)$2.72 $213.18 $296.1 $41.4 -13.39% 11.90% 5.1

China SkyOne MedicalCSKI

(NASDAQ)$11.33 $190.23 $130.1 $34.4 19.40% 41.72% 5.5

Tianyin Pharmaceutical Company

TPI

(AMEX)$2.67 $71.67 $42.8 $7.9 32.50% 28.18% 7.9

China PharmaCPHI

(AMEX)$2.67 $115.58 $61.7 $20.3 13.46% 21.05% 5.6

Simcere Pharmaceuticals

SCR

(NYSE)$8.13 $447.27 $270.9 $17.5 -65.89% 6.24% 22.0

Average 12.4% 24.3% 6.4

Attractive Valuation

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Attractive industry dynamics supports long-term growth

Strong R&D capability ensures high margin pipelines

Competitive advantage with solid portfolio of proprietary SFDA approved therapeutics

Expanding multi-channel distribution network to increase market penetration

Established quality brand name

Fragmented industry creates opportunities for acquisitions

Investment Summary

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Company:Ren Hu VP of FinanceWeikang Bio-Technology GroupPhone: (201) 887 0415Email: [email protected]

Investor Relations:Elite IRJohn MarcoPhone: (310) 819-2948Email: [email protected]

Legal Counsel:The Crone Law GroupWayne Chiang101 Montgomery StreetSuite 1950, San Francisco, CA 94104Phone: (415) 955-8900Email: [email protected]

Auditor:Ahmed Mohidin, PartnerGoldman Parks Kurland Mohidin, LLP16133 Ventura Blvd.Suite 880Encino, CA 91436Phone: (818) 784-9000Email: [email protected]

Contact Information