Hard To Treat Diseases (HTDS) Closes Acquisition of Mellow Hope, China

BEIJING, Feb. 20 /PRNewswire-FirstCall/ - Hard to Treat Diseases (HTDS) www.htdsmedical.com is pleased to announce that it has closed the merger agreement with Shenzhen Mellow Hope Pharm Industrial Co., Ltd. (Mellow Hope). The acquisition has been structured through a Belize based corporation; HTDS Enterprises, Inc., which is the parent company of Mellow Hope. The acquisition is valued at $8.75 million USD on an all-stock basis. The company will issue 3.5 billion restricted shares valued at 0.0025 to Mellow Hope. This will bring the outstanding share structure to 4.75 billion shares.
The merger was announced in a formal televised ceremony on Monday, February 16th. A sampling of television and press coverage can be viewed at the following websites;


- Television: www.sztv.com.cn
- Shanghai Security Daily and China Security Daily Report:
http://www.cnstock.com/paper_new/html/2009-02/17/content_66969010.htm
- Hong Kong and China Phoenix TV report:
http://finance.ifeng.com/zq/qqgs/zbsc/20090218/383646.shtml
- China investment Daily report: http://www.chnvc.com/news/a11447.html
- China's largest internet portal: 'Sohu report':
http://stock.sohu.com/20090217/n262295189.shtml
- China largest finance portal 'JRJ.com':
http://finance.jrj.com.cn/2009/02/1806113600127.shtml

The agreement will see Mellow Hope join Slavica Bio Chem as an active operating division of HTDS. Located in Serbia, Slavica's primary focus involves the enhancement and modification of existing approved drugs to achieve chemical repair of damage to the CNS (central nervous system) by diseases like MS (Multiple Sclerosis), SARS, Hepatitis C and HIV.

Mellow Hope is the biggest exporter of Biological Vaccines in China, and has a product line that encompasses vaccines for hepatitis A Vaccine, Group A,C,Y,W135 meningococcal polysaccharide vaccine, influenza, tetanus, diphtheria and other diseases; cerebroprotein hydrolysate for injection and active pharmaceutical ingredient (or APIs).

Mellow Hope's Hepatitis A Vaccine (sold under the brand name MEVAC-A) will enter the Thailand market for the first time this March. Additionally, the vaccine was recently certified in Russia, and will be marketed there beginning this May. In total, the Company is in the process of registration and clinical trials in more than 20 countries in Southeast Asia, Latin America and East Europe.

Plans for growth also include building of a larger cold warehouse, developing new vaccines, such as HPV and the establishment of new offices in Yunnan, Wuhan, Kunming as well as India, and the Philippines.

Mellow Hope revenues are currently in excess of $15 million USD.

HTDS CEO, Shimin (Terry) Yuan, commented; "With the full resources of a publicly traded company, and medical experts and management in place on two continents, there will be many opportunities to create synergies between the companies. Despite issues related to the global economic slowdown, there are very many Companies in China such as Mellow Hope that will continue to expand and grow at a rapid pace."

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain information contained in this release contains forward-looking statements that involve risk and uncertainties, including but not limited to, those relating to development and expansion activities, domestic and global conditions, and market competition.

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