China SHESAYS, – the premier Chinese operator of an extremely successful chain of cosmetology hospitals, outpatient clinics and skincare centers in Sichuan province, provided an update on commencement of operations at its new flagship hospital in the Sichuan capital of Chengdu.

The Company is widely known for offering a full-spectrum suite of cosmetic services from dermatology and surgery to dentistry and highly sought after TCM (Traditional Chinese Medicine), in what is a rapidly growing sector of the Chinese market.

This second flagship hospital clocks in at over 195k square feet, five times the size of the former flagship hospital and is being leased by CSAY for $1.3M per year until 2016.

Expenditures thus far (as of Dec. 31, 2010) total $1.4M and the Company plans to spend another $3.1M in 2011 outfitting the facility, which should be able to handle 100k patients per year and is slated to offer a vast array of regular and medical cosmetology services.

The facility will also play host to academic research, also offering training in many of the medical cosmetology practices employed, acting further as a hub and conduit for the cosmetology services industry in China due to size, reputation and influence.

Once the facility has gone fully operational it will easily be one of the biggest cosmetology service centers in all of China, a very nice feather for CSAY to put in its cap and something which will readily translate into improving shareholder returns as operations commence.

As of the start of this month, CSAY has begun furnishing and decorating, planning to complete process in early April, at which time the installation/testing of equipment will begin and the Company is projecting a June 2011 operational target.

Chairman and CEO of CSAY, Yixiang Zhang, was excited to be able to offer a clear timeline for the new flagship in Sichuan, but also underscored the addition of three new clinics in other cities within the province in the second part of 2010.

The jump in the scale of operations is commensurate with rising demand and CSAY anticipates garnering even greater market share as a result, leading to a more dominant overall position in Sichuan and the sector as a whole.

The Company projects continued strong demand for premium and reliable cosmetology services, and the rollout of the new flagship is the perfect call of triumph for CSAY as it enters an increasingly dynamic phase of an operational history which began back in 2005.