July 2010

Dear Ladies and Gentlemen,

We are pleased to have you as part of our family of customers, shareholders, suppliers, and employees and are pleased to update you on particular corporate events.  Niusule is publically-traded under the symbol NIUS.OB, specializing in manufacturing, supplying, and distributing nutritional products to enhance health and well being.  Our mission is to be a leading, innovative human and animal health products company in China.

Founded in 2009, Niusule’s original niche has been developing and distributing nutritional supplements for humans (children) with PlantFusion Protein and Gummy Bear vitamins.  Supplements are manufactured in the US and a strategic collaboration with Zhejian University helps to ensure the taste and preferences of Chinese consumers are met.  Today, we are well known for our high-quality products, sold throughout 100+ retail outlets in Zhejiang province, Shanghai, and Beijing.  We will continue along this stable track.

Most recently, and perhaps most important from a shareholder perspective, is that in June, 2010 Niusule increased ownership in privately-held Tianjin Behigh Pharmaceutical Co. Ltd. to 59%.  Tianjin Behigh is a China-based animal-health company, highly recognized by China’s Ministry of Agriculture for its excellence in offering the highest-quality nutritional supplements to the animal health sector - specifically livestock (chickens, pigs).  Founded in 1999 and with an outstanding reputation, Tianjin Behigh offers Nuisule access to the $600M veterinary drugs market. 

The combined strengths of Niusule and Tianjin Behigh will lead to enhanced valuation for Niusule shareholders in a variety of ways explained below.

Niusule’s Corporate Highlights:

- Enhanced Revenues – As a result of the acquisition, revenues for Niusule have resulted in an exceptional 1Q 2010 as compared to 2009.  Highlights include revenues increasing $2.53M (vs. $53,918 in 1Q 2009), gross profit increasing $1.06M, (vs. $25,396 in 1Q2009) and net income increasing to $0.59M (vs. a $441,156 loss in 1Q 2009). Furthermore, products are bought on an ongoing basis, creating a stable and recurring revenue stream.

- New Markets – Niusule now has direct access into the $600M veterinary drug market.  Through Tianjin Behigh, Niusule now has an instant infrastructure in place including: 6 distribution subsidiaries covering 30 Chinese provinces and cities, 160 city-level distributors, 800 country distributors, and 1,100 town-level distributors. 

- Enhanced Facilities – As a result of the acquisition, Tianjin’s Behigh’s 15,000 sq. meter GMP-certified factory, located in Tianjin, offers Niusule a state-of-the art environment to continue operations.  Veterinary drugs and feed additives continue as the core products.  With the basic infrastructure in place, Niusule plans to enhance the facilities at a later date.

- New Products - In addition to human supplements, Niusule’s expanded animal-health products address an ever-growing market.  Injections, solutions, western powders, and Chinese medicine powder provide a complete product portfolio.  Products address new and specific health areas, as opposed to improving existing lines, thereby continually increasing sales opportunities.  Products currently under development include Chicken Interferon (IFY-y), with a 3-5 year completive lead, and new fat & lipid solution compound vitamin preparations. 

- GMP Re-Certification - We proudly announced positive re-inspection (94.5 out of 100 points) from the Chinese Ministry of Agriculture.  The re-inspection, occurring 5-years post Certification, affirms Nisule’s continued commitment to meeting the Ministry’s standards.  Especially given the recent Tianjin Behigh acquisition, this announcement is timely confirmation of a beneficial transaction.

- Plans for Growth - With recently acquired facilities, infrastructure, distribution, and products, Niusule is poised for growth.  Entrance into the expanding animal-health market is accelerated given that Tianjin Behigh already has established inroads, a loyal consumer base, and industry know-how.  Niusule’s public listing, access to capital, and seasoned management offer Tianjin an opportunity to further grow its business and receive a valuation on par with pubic peers.

We value your ongoing interest and support and look forward to continuing updating you as additional milestones are achieved.  We welcome any queries and have provided contact details for our investor relations representative below.  And should you be in the Tianjin area, we invite you for a site visit at our facilities.

Yours Truly,

 

 

 

 

Ms. Quinghua (Amy) Hu

Chairwoman & Chief Executive Officer

Nuisule Biotechnology Corporation

 

 

 

Investor Relations Contact:

Ms. Jennifer K. Zimmons, Ph.D.

(212) 838-1444

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