Tianyin Pharmaceuticals Co (NYSE AMEX:TPI)

As of June 30, 2011, we had working capital totaling $38.5 million, including cash and cash equivalents of $31.7 million. Net cash generated from operating activities was $14.2 million for fiscal year 2011 as compared with $15.4 million for fiscal year 2010 which was mainly due to the change in fair value of warrant liability of $(1.6) million compared with $0.16 million in the previous year. In fiscal year 2011, the accounts receivable also improved: $9.0 million, 9.5% of the total revenue as compared with $8.2 million 12.8% of the fiscal year 2010 revenue. We believe that TPI is adequately funded to meet all of our working capital and capital expenditure needs for fiscal year 2012.

We believe that Tianyin is adequately funded to meet all of our working capital and capital expenditure needs for the fiscal year 2011.