EXHIBIT 99.1
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BEIJING MED-PHARM CORPORATION ANNOUNCES INTENTION TO RESTATE PRIOR RESULTS

PLYMOUTH  MEETING,   Pa.--(BUSINESS   WIRE)--Aug.  19,  2005--Beijing  Med-Pharm
Corporation  (the  "Company")  announced  today that it  intends to restate  its
financial  statements  as  of  and  for  the  period  ended  December  31,  2004
principally to correct a $51,000  overstatement  of revenue.  As a result of the
restatement,  revenues reported for the fiscal year ended December 31, 2004 will
be reduced  from  $260,000 to $209,000,  resulting  in an increased  loss in the
Company's  earnings  per share  from  $0.15 per  share to $0.16 per  share.  The
overstatement resulted from the erroneous recording of an advance payment from a
distributor as revenue in the first quarter of 2004.

The Company  discovered the  misstatement  in connection with the preparation of
the Company's periodic report for the quarterly period ended June 30, 2005. As a
result of this  event,  the  Company  has  determined  that a material  weakness
existed in its internal  control over  financial  reporting  relating to revenue
recognition in connection with a transaction in China. Specifically, the Company
recorded  the advance  payment from a  distributor  as revenue  where,  in fact,
commission revenue in respect of the advance payment was not earned. The Company
has instituted  remedial measures to address the weakness,  including the hiring
of a corporate controller who will spend a considerable amount of time in China,
the  enhancement  of the  Company's  inventory  and  receivable  reconciliations
process and the establishment of internal audit procedures.

The Company does not believe that the  misstatement  of revenue is material.  As
noted  above,  total  revenue for 2004,  even before the  restatement,  was only
$260,000,  which reflects the Company's  stage of  development  and was far less
than the Company's total operating expenses,  which totaled $2,264,000.  In this
context, management does not believe that a $51,000 adjustment in revenues would
have any meaningful  impact on an analysis of the Company's  operating  results.
Nevertheless,  the Company,  in  consultation  with its  independent  registered
public accountants, determined that the restatement would be prudent because the
misstatement relates to revenue recognition, which has been an area of focus for
public  companies  in  recent  years,   and  because  the  misstatement   equals
approximately  20%  of  the  Company's  2004  revenue.  Moreover,   management's
determination  to restate was influenced by its conclusion that the misstatement
is attributable to a material weakness in internal control.

This  matter  does not affect the  Company's  statement  of  operations  for the
quarter ended June 30, 2005.

The  Company  intends to file a  post-effective  amendment  to its  registration
statement on Form S-1 as soon as practicable to reflect the restatement