INVESTOR INVESTOR PRESENTATIONPRESENTATION

Weibing Lu, CEOMichael Lan, CFO

Rodman & Renshaw Annual China Investment ConferenceRodman & Renshaw Annual China Investment ConferenceMarch 6March 6--8, 20118, 2011

Safe Harbor StatementStatements in this presentation may be "forward-looking statements" within the meaning of federalsecurities laws. The matters discussed herein that are forward-looking statements are based on currentmanagement expectations that involve risks and uncertainties that may result in such expectations not beingrealized. Forward-looking statements involve risks and uncertainties that may cause actual results,performance or financial condition to be materially different from the expectations of future results,performance or financial condition expressed or implied in any forward-looking statements. Such risksinclude, but are not limited to, competition in the veterinary bio-pharmaceutical industry, declines indemand for the Company’s products, rising raw materials costs, changes to management or key personnel,risks associated with conducting business in China, the Company’s ability to expand into markets outside ofChina and other risks detailed in the Company’s filings with the Securities and Exchange Commission. Actualoutcomes and results may differ materially from what is expressed or forecasted in such forward-lookingstatements due to numerous potential risks and uncertainties. Forward-looking statements made during thispresentation speak only as of the date on which they are made, and we do not undertake any obligation toupdate any forward-looking statement to reflect events or circumstances after the date of this presentation.

Because forward-looking statements are subject to risks and uncertainties, we caution you not to placeundue reliance on any forward-looking statements. All written or oral forward-looking statements by theCompany or persons acting on its behalf are qualified by these cautionary statements.

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Skystar Share SnapshotSkystar Share SnapshotTICKER NASDAQ: SKBI

Stock Price (March 1, 2011) $7.50

52 Week Range $5.81 – $11.95

Shares Outstanding 7.10M

Market Cap $55.0M

P/E (LTM) 4.3X

Revenues: Q3’10 / 9 months 2010 $18.5M (unaudited) / $31.7M

EPS: Q3’10 / YTD 2010 $0.93 (unaudited) / $1.42

Fiscal 2010 Revenue Guidance $45.5 Million - $47.5 Million

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OverviewOverview•Headquartered in Xi’an, Shaanxi Province, Central China

•200+ Employees

•Engaged in the:•R&D,•Manufacture,•Sale; and•Distribution

of veterinary drugs and animal health products in China

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Overview cont’dOverview cont’d•Skystar is a proxy to China’s:Changing domestic consumption trends

Growing animal husbandry industry

•Skystar is the only US-listed pureplay in the China animal healthsector

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Focus on Five Major Product LinesFocus on Five Major Product Lines

•Skystar is a leading provider of veterinary medicinesand healthcare products in China serving regionalmicrofarms

•360 degree product suite for farmers consisting of: Veterinary vaccines,

Veterinary medicines,

Pro-biotic micro-organisms,

Animal feed additives; and

*Aquaculture (fish farming) treatments *manufacturing facility not online as of Q1’2011

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FacilitiesFacilities•Skystar’s facilities and processes areChina Good Manufacturing Practice(“GMP”) certified, approved by China’sMinistry of Agriculture (MOA) asconforming to strict GovernmentStandards

•5 year renewable licenses for 100+ drugs and formularies

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Product ListProduct List

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MetamizoleSodium Injection

AntondineInjection

DexamethasoneSodium Phosphate Injection

Enrofloxacin Injection

Compoumd Vitamin B Injection

Sulfamonomethoxine Sodium Injection

Sulfadiazine Sodium Injection

Kanamycin Sulfate Injection

Gentamycin Sulfate Injection

GentamycinMicronomicinSulfate Injection

Mequindox Injection

Vitamin C Injection

Vitamin B1 Injection

Lincomycin Hydrochloride Injection

Danofloxacin Mesylate Powder

Ofloxacin Injection Norfloxacin Nicotinate Injection

Ciprofloxacin Hydrochloride Injection

Pefloxacin Mesylate Granules

Praziquantel Tablets

Compound Sulfamethoxazole Tablets

OfloxacinTablets

Amoxicillin Soluble Powder

AvermectinPowder

DiclazurilPremix (0.2%)

Florfenicol Powder Compound Amoxicillin Powder

hiamphenicol Powder

Erythromycin Thiocyanate Soluble Powder

Apramycin Sulfate Soluble Powder

Neomycin Sulfate Soluble Powder

Colistin Sulfate Soluble Powder

Salinomycin Sodium Premix

Ciprofloxacin Hydrochloride Soluble Powder

SpectinomycinHydrochloride

Ofloxacin Soluble Powder

Baitouweng San Baotai Wuyou San

Chulijing Danjibao

Feizhucai Fuzheng Jiedu San

Gongying San Houyanjing San Huanglian Jiedu San

Jianji San Jianwei San Jingfang Baidu San

Mubin Xiaohuang San Qingfei Zhike San

Qingshu San Qingwen Baidu San

Quchong San Tongru San Xiaoji San Yimu Shenghua San Yujin San Zhili San Sulfamethoxydiazine Sodium Injection

Lomefloxacin Hydrochloride

Danofloxacin Mesylate Injection

Sulfathiazole Sodium Injection

Buzhong Yiqi San Fangji San Shenling Baishu

Qibu San Sulfaquinoxaline Sodium Soluble Powder (10%)

Fenbendazole Powder

Sulfachloropyrazin Sodium Soluble Powder

Huoxiang Zhengqi San

Cuiqing San Longdan Xiegan San

Maxing Shigan San

Qumai San Shengru San Xiaoshi Pingwei San Xiaochaihu San Yinqiao San Pefloxacin Mesylate Injection

Enrofloxacin Injection

Florfenicol Injection

Lomefloxacin Hydrochloride Injection

Berberine Sulfate Injection

Gentamycin Sulfate Injection

Promethazine Hydrochloride Injection

Bailong San Feizhu San Ivermectin Premix

Kitasamycin Premix Pefloxacin Mesylate Soluble Powder

Ciprofloxacin Lactate Soluble Powder

Norfloxacin Nicotinic Soluble Powder

Tylosin Tartrate Soluble Powder

Lincomycin Hydrochloride Soluble Powder

TilmicosinPremix

100+ Drugs Approved by MOA

+ additional approved formularies

Distribution and Customer BaseDistribution and Customer Base

1,894 distribution agents (+11% YoY)

715 direct customers (+21% YoY)

360 franchised stores with exclusivity agreements

Distribution to all 29 farming Provinces in China

(As of September 30, 2010)

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Market IndicatorsMarket Indicators•U.N. Food and Agriculture Organization noted that as of 2007,China has net meat imports of +$2.8 BN (UNFAO-STAT 2009)

•In 2009, the market scale of China’s Animal Vaccine industryreached 6.2 billion (RMB), up 15% year-on-year (Research in China 2010)

•In order to meet the changing dietary habits ane demands of itsdomestic consumers and visitors, China’s Government issupporting free markets combined with rapid development,alongside drug manufacturing regulation that is increasinglycloser to international GMP standards

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Ever Present OpportunityEver Present Opportunity•China is now the world’s largest producer of poultry, fish and livestock

(UN-FAO)

•New market opportunities include Company estimated $150 million (fish farming) aquaculture market

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International StandardsInternational Standards

•China’s MOA since 2004 has imposed strict GMP certification standards

•Currently only 1,300 manufacturers have made the grade down from 2,400

•In March of 2011, SFDA implemented stricter vaccine manufacturing standards and subsequently passed World Health Organization’s regulatory system assessment and is now in-line with international standards

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ProductsProductsSkystar’s compimentary product lines reflects a business model that addresses all keysegments of the animal farming industry and allows the Company to capture moremarket share

• Veterinary vaccines (10 products)

• Active and inactive vaccines to prevent sickness and disease in poultry and livestock

• Veterinary medicines (212 products)

• Probiotic micro-organisms (16 products)

• Animal Feed (10 products)

• Aquaculture products (coming soon)

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Q3 Revenues By OfferingQ3 Revenues By Offering

Veterinary Medicines

67.0%

Veterinary Vaccines

3.8%

Micro-Organisms

25.4%

Feed Additives

3.8%

Q3’10 Revenues - $18.5M

Q3 revenues increase 45% year over year251 products in Q3’10 up from 159 in 2009

40 product introductions in 2010

Veterinary Medicines

66.4%

Veterinary Vaccines

4.4%

Micro-Organisms

24.9%

Feed Additives

4.2%

Q3’09 Revenues - $12.8M

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Veterinary MedicationsVeterinary Medications

215 products• Improved utilization and product mix of

upgraded Huxian facility • Focus on higher margin products

Vet. Medications

Q3’2010 Q3’2009

Revenue % of Rev.

Gross Margin

Revenue % of Rev.

Gross Margin

Revenue $12.4M 67.0% 44.0% $8.5M 66.4% 40.0%

Q3 Total Rev. $18.5M $12.8M

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MicroMicro--organismorganism

16 products

• Added production capacity at Huxian plant online, June 2010

• ~70% gross margins

Micro-organism Q3’2010 Q3’2009

Revenue % of Rev.

Gross Margin

Revenue % of Rev.

Gross Margin

Revenue $4.7M 25.3% 74.7% $3.2M 24.9% 75.3%

Q3 Total Rev. $18.5M $12.8M

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Feed AdditivesFeed Additives

10 products

• Increase yield and improve health of livestock

Feed Additives Q3’2010 Q3’ 2009

Revenue % of Rev.

Gross Margin

Revenue % of Rev.

Gross Margin

Revenue $0.7M 4.0% 60.8% $0.5M 4.2% 61.9%

Q3 Total Rev. $18.5M $12.8M

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Veterinary VaccinesVeterinary Vaccines

10 products

• Completed installation, tooling and testing of equipment in updated Huxian facility in August, 2010

• Awaiting GMP certification and inspection date from MOA

• New vaccine production line to generate estimated $14M per year in the new facility once fully ramped

• New aquaculture vaccine line to launch in 2011; expected to contribute $8-$15M in annual revenue within 3-5 years of market, with exclusive marketing rights through 2020

Vet. Vaccines Q3’ 2010 Q3’ 2009

Revenue % of Rev. Gross Margin Revenue % of Rev. Gross Margin

Revenue $0.7M 4.1% 89.7% $0.5M 4.4% 92.0%

Q3 Total Rev. $18.5M $12.8M

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R&D Facility #1R&D Facility #1

Xi’an R&D Facilities

Over 25 researchers responsible for developing new medicines and vaccines in response to epidemics, pandemics and diseases

Veterinary Medicine and Microorganism Labs

One Quality Inspection Center19

Shanghai R&D Facilities

5 researchers from the Chinese Academy ofAgricultural Sciences

Responsible for evaluating and implementingmanufacturing and medical technology fromaround China and around the world

Responsible for evaluating and implementingshort-term and long-term planning for futuremedications and vaccines

R&D Facility #2R&D Facility #2

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Research AffiliationsResearch Affiliations

University research affiliations include:

• Shaanxi Microbial Research Institute

• Jiangsu Microbial Research Institute

• China Northwestern University

• China Northwest Agriculture and Forestry University

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Bringing Products to MarketBringing Products to Market

•Approved by Chinese Ministry of Agriculture for the manufacture and distribution of 100 types of veterinary drugs in various formularies including all compulsory vaccines such as hog cholera, hoof and mouth disease and bird flu vaccine

•Our R&D Labs uses both Traditional Chinese Medicine and Modern Western Approaches (i.e. antibiotics) to develop treatments such as the kits used to treat Swine High-Fever Syndrome (Blue-Ear Disease)

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Sales and Technical SupportSales and Technical Support

•Training and Technical support at trade shows, fairs and exhibitions

•Training for animal husbandry “experts” are provided at the local level

•Training seminars for local farmers in the usage of Skystar products

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Competitive LandscapeCompetitive Landscape•Largest competitors are State-owned Enterprises

•Government is supportive of a free market in this niche

•Majority of competitors only offer 1-2 product linesand broad “shotgun” approach to treatments

•High barriers of entry for international competitors

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Results:•Currently producing over 251 products in 2010 as compared to 195 in 2009•40 products be developed in 2010

Growth StrategyGrowth Strategy

New Product Introductions via:•R&D team tracking global veterinary developments and trends•Market feedback from franchise stores and customers

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Growth StrategyGrowth Strategy

Aquaculture (fish farming)

Acquired rights to produce aquaculture vaccine line through 2020

Estimates additional revenue of $8M-$15M annually in 3-5 years following full ramp up

Early mover in fast growing aquaculture industry

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Growth StrategyGrowth StrategyUpdated Huxian Manufacturing Facility

in Xi’an

•Micro-organism facility to add 49% to capacity, production commenced in June 2010

•Veterinary medication line manufacturing capacity increased

•Vaccine facility update completed in June, 2010; awaiting GMP certification notice from MOA.

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Growth StrategyGrowth Strategy

Acquisition Targets

Targeting highly accretive acquisitions

High growth areas/products that fit the company’s long term strategy

GMP facilities with complimentary products

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M&AM&A

Acquisitions

Completed Hubei target – acquired veterinary manufacturer through bankruptcy proceedings in August 2010, purchase price of roughly $3.5M

Deposit placed for Jiangsu based micro-organism manufacturing facility

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Historical Annual RevenueHistorical Annual Revenue

(millions)

$9.80

$15.10

$25.58

$33.80 $31.70

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

2006 2007 2008 2009 9M'2010

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LTM Quarterly Revenue (Unaudited)LTM Quarterly Revenue (Unaudited)

($millions)

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$10.90

$4.86

$8.30

$18.50

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

Q4'09 Q1'10 Q2'10 Q3'10

Historical Gross Profit / Gross MarginsHistorical Gross Profit / Gross MarginsRevenue ($millions)

$4.40 $8.34 $12.78 $17.30 $17.00

44.7%

55.4%49.9% 51.8% 54.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

2006 2007 2008 2009 9M'2010

Gross Profit % Gross Margin32

Adjusted Net Income GrowthAdjusted Net Income GrowthRevenue ($millions)

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2.38 4.20 6.70 9.70 6.50

24.30%27.90% 25.90%

28.80% 35.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2006 2007 2008 2009 Q3'2010

Adjusted Net Income Profit Margin

Annual Adjusted Net Income Annual Adjusted Net Income (Unaudited)(Unaudited)

12 Months Ended December 31

2009 2008 2007Net income (loss) $8,851,932 $5,596,183 ($1,956,976)

Non recurring non-cash charges:

Amortization of deferred financing - 101,815 879,212

Amortization of discount on debentures - 680,446 3,716,243

Amort of deferred compensation - 62,758 643,119

Inducement costs for debentures converted - 257,775 634,450

Inducement costs for warrants exercised - - 279,547

Change in fair value of warrants 349,332 - -

Income net of non-recurring non-cash items $6,644,513 $6,698,977 $4,195,595

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Q3’2010

Revenues Gross Profit GM %

Veterinary Medications $12,366,426 $5,415,588 44%

Micro-organism $4,700,623 $3,513,646 75%

Feed Additives $737,077 447,815 61%

Vaccines $765,621 $686,581 90%

Total $18,569,747 $10,063,610 54%

High Margin ProductsHigh Margin Products

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Select Balance Sheet DataSelect Balance Sheet Data

As of: Sept. 30, 2010 Sept. 30, 2009

Cash $2.0M $14.8M

Current Assets $41.4M $36.2M

Current Liabilities

$9.1M $3.8M

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Weibing Lu, Chairman and CEO• Founded Xian Tianxing Bio-Pharmaceutical Co., Ltd. (our operating company in China) in

1997 • BS from Wuhan University in 1985 and MBA from Xi'an Jiaotong University in 1999• Awarded Outstanding Entrepreneur of Xi'an Feed Industry in 2002 • Appointed as a Director of Xi'an Institute of Feed Industry

ManagementManagement

Michael Lan, Chief Financial Officer• 15 years of operational and accounting experience with a number of US public companies

including Silgan Containers, Gilead Sciences• Extensive consulting experience helping companies improve financial control, streamline

business operations and improve efficiency and productivity, with large and medium sized companies in the US

• Based in CA, U.S., bi-lingual with degrees from China and U.S. Universities• BA from Xiamen University, China, MA of Accounting from USC

Scott Cramer, Director Corporate Development and U.S. Representative• Former CEO and CFO of Cyber Group• Founder and President of Cramer & Rauchegger, Inc., specializing in retirement and estate

planning• Registered Representative - Series 7, 63, 65

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ThankThank--YouYou

38

Organizational ChartOrganizational Chart

39

Skystar Bio-Pharmaceutical Company

(NASDAQ:SKBI)[Parent Co. USA]

Skystar Bio-Pharmaceutical (Cayman) Holdings Co. Ltd.“Skystar Cayman”

[Intermediary Holding Co.]

Xian Tianxing Bio-Pharmaceutical Co. Limited“Xian Tianxing”

Sida Biotechnology (Xian) Co. Ltd.“Sida”

Fortunate Time International Ltd.“Fortunate Time”

Shanghai Siqiang Biotechnological Co., Ltd. “Shanghai Siqiang”

Skystar Biotechnology (Jingzhou) Co., Limited

“Skystar Jingzhou”

Skystar Bio-Pharmaceutical Inc.“Skystar California”

Skystar Biotechnology (Kunshan) Co., Limited “Skystar Kunshan”

[Kunshan, Jiangsu Province]

United States – Nevada

100% Ownership 100% Ownership

100% Ownership

Outside China

Inside China 100% Ownership

Wholly Foreign Owned Enterprise “WFOE”

100% Ownership

Variable Interest Entity “VIE”

Jingzhou, Hubei Province