China Ruitai International Holdings Co., Ltd. Reports 2010 Financial Results

Company to host conference call on April 4, 10:00am ET

Increased production capacity and selling prices boosts sales by 20.8% to $43.2 million; net income by 22% to $6.9 million with EPS of $0.26

Shifting product portfolio to higher margin industries; Pharmaceutical sales contributed to 46.1% of total revenue

FEICHENG, China, April 2, 2011 /PRNewswire-Asia/ -- China Ruitai International Holdings Co., Ltd. ("China Ruitai", or "the Company") (OTC Bulletin Board: CRUI), a manufacturer and distributor of cellulose ether additives for use in the production of pharmaceuticals, construction materials, PVC products, foods and beverages and cosmetics, today announced its 2010 results for the three and twelve months ended December 31, 2010.

"We have seen another year of consistent growth as we the top line and bottom line increased by 20%," began Chairman Dianmin Ma of China Ruitai. "With escalating demand for our product from pharmaceutical, food and cosmetics customers and a dedicated sales team catering to their needs, we anticipate further margin improvements as we move into 2011. We are well positioned to capture further market share by leveraging our recognized brand to win business. As the competitive landscape narrows due to smaller non-compliant facilities closing, we are optimistic about enhanced pricing power and leading position in the marketplace."

For the 3 months ended December 31, 2010

Total revenue for the three months ended December 31, 2010 was $10.6 million, a 19.6% increase compared to $8.9 million in 2009. The increase in sales was mainly attributed by sales of Ethyl Cellulose ("EC") added by the additional 500 tons of EC production line in the second half of 2010 and pharmaceutical Hydroxypropyl Methyl Cellulose (HPMC).

Cost of sales during the three months ended December 31, 2010 increased by 17.2% to $7.6 million compared to $6.5 million in 2009.

Gross profit for the period was $3.0 million compared to $2.3 million in 2009, a 26.1% increase year-over-year. Increases in gross margins were attributed to greater sales revenues and increased sales of Company's higher margin, EC-based product line for pharmaceutical uses.

Net income in fourth quarter of 2010 increased 32.8% to $1.6 million versus the same period in 2009. Earnings per share were $0.06 per share, a 20% increase in EPS for the quarter compared to the fourth quarter, 2009.

For the 12 months ended December 31, 2010

Total revenue for the twelve months ended December 31, 2010 was $43.2 million, a 20.8% increase compared to $35.7 million in 2009. The increase in revenues was primarily a result of increased production capacity of Ethyl Cellulose (EC) and sales of the Company's EC-based products for the pharmaceutical industry. In July 2010, the Company added an additional 500 tons of new production for ethyl cellulose, which is mainly used as a chemical additive in the production and manufacturing of medicine tablets. Total capacity on December 31st was 8500 tons annually and during 2010 the company operated at 86% capacity utilization. In the last two quarters of the year, the Company was also able to increase the average per ton selling price of the products by $250, or 8%, which also contributed to the increase.

Cost of sales during for the year ended December 31, 2010 increased by 27.3% to $30.4 million compared to $23.9 million in the same period of 2009. The increase was consistent with the increase in revenues and increase in the market pricing of ginned cotton, the key raw material used in the manufacturing of cellulose ether. Cotton pricing increases was mitigated by processing an alternative raw material, wood pulp, to extract cellulose for the production of ether cellulose.

Gross profit still increased by 7.8% to $12.8 million for the fiscal year 2010 compared to $11.9 million in the prior responding fiscal year.

Selling and marketing expenses which consist of sales commissions, freight charges, and advertising and promotion expenses increased to 15.1% to $1.8 million compared to $1.5 million in 2009.  General and administrative ("G&A") expenses decreased by 47.1% to $1.4 million compared to $2.6 million in 2009. The decrease in G&A expenses was related to costs reductions in sales staff overhead after the Company consolidated their Beijing sales teams in one office. China Ruitai's dedicated sales department is servicing existing and potential clients across the pharmaceutical, packaged food, personal care and cosmetics industries.

Operating expenses for the year ended December 31, 2010 were $3.2 million, compared to $4.2 million in the prior year's corresponding period, a 24.0% decrease year-over-year.

Operating income advanced 25.0% to $9.6 million, with operating margin of 22.3%.

Net income for the 12 months ended December 31, 2010 was $6.9 million compared to $5.7 million in the prior year's corresponding period, a 22.2% increase over the prior year. Earnings per share increased 18.2% to $0.26 in the 12 months period based on 26.0 million basic and diluted shares outstanding.

Financial Condition

As of December 31, 2010, the Company had $25.3 million in cash and cash equivalents, up from $10.2 million as of December 31, 2009. The Company had $42.3 million in short term loans and $18.1 million in notes payable from several large financial institutions, including Bank of China, China Agriculture Bank and China Citic Bank, Cooperative as of December 31, 2010. China Ruitai reduced notes payable by approximately $31.9 million compared to the end of year 2009. Shareholder's equity was $29.9 million, a 35.7% increase from $22.0 million reported on December 31, 2009.

Conference Call

Ms. Dianmin Ma, Chairwoman and CEO, Mr. Gang Ma, CFO and Ms. Crystal Tang, VP of Investor Relations will host the conference call. To attend the call, please use the information below for either dial-in access or webcast access. When prompted on dial-in, ask for the "China Ruitai Call" and/or be prepared to provide the conference ID.

Please dial in at least 10-minutes before the call to ensure timely participation.

A playback of the call will be available from 12:00 Noon Eastern Time on April 4 until 11:59 pm Eastern Time on April 11, 2011. To listen, call 1-877-870-5176 within the United States or 1-858-384-5517 when calling internationally. Please use the replay pin number 4430994.

This call is also being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=00007D7B or at ViaVid's website at http://www.viavid.net, where the webcast can be accessed through April 4, 2012.

About China Ruitai International Holdings Co.

China Ruitai is engaged in the production and sales of processed chemicals, with a primary focus on non-ionic cellulose ether products. Cellulose ether is an organic chemical that dissolves in water and other organic solvents. Due to the surface-active properties of cellulose ether, it acts as a thickener and stabilizer in aqueous solutions, making it a beneficial additive in a wide variety of commercial industries and products, including, but not limited to the pharmaceutical industry, the construction industry, PVC products, food and beverage products, petroleum, and cosmetics. Specific examples of applications in which cellulose ether products are used include: as a stabilizer and thickener in latex paint; in mortar dry mix for building materials; to improve the performance of resin in PVC production; as a membrane reagent, stabilizer, and thickener in pharmaceuticals; and to improve jam, ice cream, toothpaste and lipsticks in the food and cosmetic industries. China Ruitai is one of the largest non-ionic cellulose ether producers in China.

Forward-Looking Statements

This press release contains certain "forward-looking statements" that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its products in new markets and to offer products at competitive pricing, to attract and retain management, and to integrate and maintain technical information and management information systems, political and economic factors in the PRC, compliance requirement of laws and regulations of the PRC, the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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