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Yew Bio-Pharm Group Reports 2014 Second Quarter Financial Results

Announces Price Increase for TCM Raw Materials to Support Profitably Objectives

Adds Two New TCM Raw Material Customers

HARBIN, CHINA, August 14, 2014 — Yew Bio-Pharm Group, Inc. (“Yew Bio” or the “Company”) (OTCBB: YEWB), a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine and products made from yew timber in China, today reported financial results for the three- and six-months ended June 30, 2014.

2014 Second Quarter Results

Three Months Ended June 30, Percentage
2014 2013 Change
Revenues:
TCM Raw Materials $1,150,805 $1,270,330 (9.4)%
Yew Trees 872,437 796,653 9.5%
Handicrafts 40,325 39,383 2.4%
Total Revenues $2,063,567 $2,106,366 (2.0)%

Total revenues for the second quarter of 2014 were $2.06 million, compared with $2.11 million a year ago.

Sales of TCM raw materials amounted to 55.8% of total revenues; sales of yew trees amounted to 42.3% of total revenues; and sales of handicrafts made up the remaining 1.9%.

For the 2014 second quarter, gross profit was $1.64 million, or 79.4% of total revenues, compared with $1.60 million, or 76.0% of total revenues for the comparable 2013 quarter. The increase in the gross profit margin was primarily attributable to higher gross profit margin in the TCM raw materials segment.

Operating expenses decreased 20.5% to $221,000 for the quarter ended June 30, 2014, from $278,000 in the year-ago quarter. The decrease was primarily related to overall cost reduction and operational efficiency.

Net income for the three-months ended June 30, 2014 increased 7.2% to $1.4 million from $1.3 million in the same quarter last year. Earnings per diluted share were $0.03, in line with the same period last year.

Subsequent to the quarter, the company signed and closed two new TCM raw material contracts with Shenzhen HongYangSiHai Trading Company and Harbin QiHuiCheng Trading Company for a combined value of more than $350,000.

“Revenue for the quarter was in line with last year with growth in the yew trees segment offset the seasonal slowdown of TCM raw materials,” said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group. “We are pleased with the performance from our yew tree regional sales agent, Shenzhen DongFangShangCheng Trading Company whom we signed a one year contract, which contributed to our improvement in this segment.

“To accelerate our growth we are working to expand and diversify our customer base, and the two new TCM raw materials contracts are indicative of such progress. In addition, to improve profitability we implemented a price increase for our TCM raw materials effective August, which is expected to have a positive impact on both revenues and gross profit through the remainder of 2014 and beyond,” Wang added.

Six Month 2014 Financial Results

Six Months Ended June 30, Percentage
2014 2013 Change
Revenues:
TCM Raw Materials $2,194,785 $2,166,491 1.3%
Yew Trees 1,836,743 1,653,607 11.1%
Handicrafts 100,016 85,208 17.4%
Total Revenues $4,131,544 $3,905,306 5.8 %

Total revenues for the first six months of 2014 increased to $4.1 million from $3.9 million a year ago. Sales of TCM raw materials amounted to 53.1% of total revenues; sales of yew trees amounted to 44.5% of total revenues; and sales of handicrafts made up the remaining 2.4%.

Gross profit was $3.2 million, or 76.9% of total revenues, compared with $2.8 million, or 72.2% of total revenues for the comparable 2013 quarter. The increase in the gross profit margin was primarily attributable to an increase in profit margin for TCM raw materials, offset by a decrease in profit margin in handicrafts.

Operating expenses decreased 30.1% to $388,000 from $556,000 for the same period last year.

Net income for the first six months of 2014 increased 23.2% to $2.8 million from $2.3 million for the same period last year. Earnings per diluted share were $0.06, compared to $0.05 for the same period last year.

At June 30, 2014 the company had approximately $230,000 in cash and $1.5 million in accounts receivables.

ABOUT YEW BIO-PHARM GROUP, INC.

Yew Bio-Pharm Group, Inc., through its operating entity, Harbin Yew Science and Technology Development Co., Ltd. (HDS), is a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine (TCM) and products made from yew timber in China. Raw material from the species of yew tree that the Company grows contains taxol, and TCM containing yew raw materials has been approved as a traditional Chinese medicine in China for secondary treatment of certain cancers. The Company uses a patented, accelerated growth technology to speed the growth and maturity and commercialization of yew trees and believes that it is one of the few companies possessing a permit to sell them. To learn more, please visit http://www.yewbiopharm.com/.

SAFE HARBOR

This press release forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These forward-looking statements involve a number of risks and uncertainties that could cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to collect from our largest customers; our dependence on a small number of customers for raw materials, including a related party; our ability to continue to purchase raw materials at relatively stable prices; our dependence on a small number of customers for our yew trees for reforestation; our ability to market successfully raw materials used in the manufacture of traditional Chinese medicines; and our ability to receive continued preferential tax treatment for the sale of yew trees and potted yew trees. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K. Yew Bio does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.

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