China Elite Pharmaceuticals Taps American Intellectual Capital; Ballenger Cleveland & Issa Retained to Foster Growth of Drug Store Chain.

LOS ANGELES -- The corporate consulting firm Ballenger Cleveland & Issa, LLC (BCI) announced it has been retained by China Elite Pharmaceuticals, Ltd. (CEPL), a Nevada-based holding company, to foster growth of its drug store chain holdings. Through subsidiaries in China, CEPL owns and operates 38 retail drug stores under the banner of the Tianjin BOAI drug store chain as well as a major wholesale pharmaceutical warehouse and distribution business. All of BOAI's retail and wholesale operations are currently located in Tianjin, People's Republic of China (PRC).

Under the terms of its engagement, BCI will review the retail and wholesale business operations of BOAI and assist CEPL in locating and securing as much as five million U.S. dollars in new equity capital. The equity capital raised will be used to expand both BOAI's retail and wholesale operations within northern China. Such expansion will include the building of new retail locations as well as the selective acquisition of existing retail outlets to become part of the BOAI chain.

CEPL is the first BCI client with operating businesses in the PRC. BCI established an Emerging and High Growth Companies consulting practice group in July of 2004 to provide value-added services to small and mid-sized companies experiencing high growth. The move expanded upon the firm's long-established reorganization and insolvency consulting expertise.

Now, according to J. Michael Issa, Executive Managing Director of BCI, the firm has begun to focus its expertise on assisting companies conducting or looking to conduct business in the PRC.

"The Chinese marketplace has tremendous growth potential, yet many companies will not be able to handle the business trauma and crisis-like climate that rapid growth can have on emerging businesses," notes Issa. "BCI will utilize the same principles it employs for troubled and emerging American companies to greatly benefit promising companies in China -- before growth turns from a positive to a negative."

To assist in the growth process, BCI is offering the following services:

--General Business Management and Consultation

--Merchant and Investment Banking

--Merger, Sale or Acquisition Due Diligence 

--Strategic Planning

"Because we have knowledge of the Chinese market, BCI can offer additional management support and new capital sources to maximize the potential of companies looking to prosper in the PRC," adds Christopher Wheeler, Managing Director of Special Industries at BCI. "We are actively recruiting companies that wish to reach the next level."

More About BOAI

Founded in 1998 by Xia Xuecheng, BOAI reached preliminary revenues in excess of RMB 200 million (approximately US$ 24 million) in 2004, with pre-tax operating profits projected to reach approximately RMB 18 million or approximately US$ 2.2 million during the same period.

About Ballenger Cleveland & Issa, LLC

Ballenger Cleveland & Issa, LLC (BCI) is a leading provider of corporate consulting and merchant banking services to companies with high growth potential in a broad range of industries and disciplines. From its three offices located in Southern California, BCI professionals are available to provide hands-on, specialized assistance in complex matters to domestic and international clients whose businesses are in transition or experiencing rapid growth. Without exception, the professionals at BCI each have decades of extensive hands-on operating experience in senior executive positions at numerous companies in a diverse range of industries. To learn more about BCI please visit www.bcillc.com.