Exhbit 99.1

FOR IMMEDIATE RELEASE:         CONTACT:
                               Chris Peng Mao, CEO
                               86-10-85251616
                               info@cbioinc.com

                               Mahmoud Siddig
                               212-889-4350
                               mahmoud.siddig@taylor-rafferty.com

     China Biopharmaceuticals Completes Acquisition of Enshi Pharmaceuticals
     Acquisition Provides Step-Change in CHBP Financial and Market Position

BEIJING,  China,  July  5,  2006  --  China  Biopharmaceuticals  Holdings,  Inc.
("CHBP")(OTC Bulletin Board: ), a leading Chinese pharmaceutical company focused
on the development, manufacturing and distribution of innovative drugs in China,
reported  the  completion  of the  acquisition  of all of  the  shares  in  RACP
Pharmaceutical  Holdings  Ltd.  ("RACP"),  and its  wholly  owned  subsidiaries,
including  Shenyang  Enshi  Pharmaceutical  Co.,  Ltd.  ("Enshi"),  from RimAsia
Capital Partners L.P. ("RimAsia").

All required legal  procedures with the relevant Chinese  Government  regulatory
and audit  procedures  have been  completed  and the title  ownership of 100% of
Enshi has been passed to CHBP.

As a result of the transaction,  Eric Wei, a managing  partner of RimAsia,  will
join the CHBP Board of Directors as of the closing of the acquisition.  Prior to
joining  RimAsia in January,  2005,  Mr. Wei was a managing  director of Gilbert
Global Equity Partners, a private equity fund, which he joined in January, 1998.
Mr. Wei holds a Bachelors  degree in math and economics from Amherst College and
a  Master  of  Business  Administration  from the  Wharton  Graduate  School  of
Management at the University of Pennsylvania.

Chris Mao,  CHBP CEO,  commented,  "I am pleased to announce the closing of this
acquisition,  and welcome Eric to the board.  With 2005 revenue of $11.3 million
and net income of $5.1  million,  Enshi  will have a  positive  impact on CHBP's
financial and market profile,  and further  demonstrates  our strategy of growth
through  accretive,   value-enhancing   acquisitions.   With  our  leading  edge
technology and research capabilities, robust pipeline of new drugs, and domestic
and leading brand name consolidation  approach, CHBP remains well-positioned for
the future."




                                      - 2 -

Additional Details of the Agreement:
The aggregate amount of acquisition  related  consideration and other payouts is
approximately $16 million, including $11,500,000 in assumed liabilities of RACP,
$550,000 cash payment and the assumption of RACP's existing obligations to issue
12,000,000  warrant shares which will upon assumption result in an obligation of
CHBP to  issue  12,000,000  common  shares  of CHBP to the  holders  of the RACP
Warrants upon the future  exercise of the RACP Warrants at the exercise price of
$1.375.

About Shenyang Enshi Pharmaceutical Co. Ltd.
Shenyang Enshi Pharmaceutical Co. Ltd., based in Shenyang,  China, is engaged in
the manufacturing and distribution of  pharmaceutical  products.  As of December
31,  2005,   according  to  audited   financials,   the  revenue  of  Enshi  was
approximately $11.3 million and net income was approximately $5.1 million,  with
total  assets of  approximately  $15.1  million and net assets of  approximately
$10.3 million.

About China Biopharmaceuticals Holdings
China Biopharmaceutical Holdings, Inc (CHBP) is a research driven pharmaceutical
company dedicated to the discovery, development,  manufacturing and marketing of
small and large molecule pharmaceutical products, including medicines, vaccines,
and active pharmaceutical  ingredients for various categories of diseases.  CHBP
is a US public company with operating  subsidiaries and senior  management based
in China.

For the year ended December 31, 2005, CHBP reported in its 10K filed with the US
Securities and Exchange Commission revenues of $31 million, operating income of
$2.7 million and net income of $960,685.

For further information, please visit our website at www.cbioinc.com.

Safe Harbor Statement
The  statements  contained  herein that are not  historical  facts are  "forward
looking  statements"  within the  meaning of Section 21E of the  Securities  and
Exchange Act of 1934, as amended,  and the Private Securities  Litigation Reform
Act of 1995. Such  forward-looking  statements may be identified by, among other
things,  the use of forward-looking  terminology such as "believes,"  "expects,"
"may,"  "will,"  "should," or  "anticipates"  or the  negative  thereof or other
variations thereon or comparable terminology, or by discussions of strategy that
involve risks and  uncertainties.  In particular,  our statements  regarding the
potential growth of the markets are examples of such forward-looking statements.
The  forward-looking  statements include risks and uncertainties,  including but
not limited to, general  economic  conditions and regulatory  developments,  not
within our control. The factors discussed herein and expressed from time to time
in our filings with the  Securities and Exchange  Commission  could cause actual
results and  developments  to be materially  different  from those  expressed or
implied by such statements.  The forward looking  statements are made only as of
the date of this filing,  and we undertake no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances.

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