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China Technology Announces the Establishment of New Production Base for Nutraceutical Products in China Merchants Zhangzhou Development Zone

China Technology Development Group Corporation
2006-12-21 13:09 1475

HONG KONG, Dec. 20 /Xinhua-PRNewswire-FirstCall/ -- China Technology

Development Group Corporation (Nasdaq: CTDC; "CTDC" or "the Company") today

announced that the Company entered into an Investment Agreement and a

Leasing Agreement (collectively, the "Agreements") with China Merchants

Zhangzhou Development Zone (the "Zhangzhou Development Zone") on December

15, 2006. Pursuant to the Agreements, the Company will invest RMB10

million, for the first stage of the project, through its wholly own

subsidiary, China Natures Technology Inc., for the establishment of China

Merchants Zhangzhou Development Zone Innoessen Biotech Co., Ltd

(the "Zhangzhou Innoessen"), a newly established operating subsidiary of the

Company which business will focus primarily on the production and

manufacturing of nutraceutical products. Total planned investment could

reach RMB100 million as the project advances to future stages. Zhangzhou

Innoessen will establish production facilities in Zhangzhou Development

Zone, for the first stage, on a 2,000 square-meter space leased by the

Company pursuant to the Agreements. Zhangzhou Development Zone agrees to

provide more premises to completely meet the Company's demand in the future

when the project advances to next stages. Zhangzhou Innoessen and its

production facilities located in the Zhangzhou Development Zone will be the

Company's principal nutraceutical material processing and manufacturing base

in the future.

Zhangzhou Development Zone is a subsidiary of the China Merchants

Group. It has a total area of 54 square kilometers and is located in the

southern coastal area of Xiamen Bay of the Fujian Province, China. It

offers a better investment environment and features a deep water container

port, logistic centers and an industrial park.

The Company has been reviewing and restructuring its nutraceutical

business recently and has identified Zhangzhou Development Zone as the most

appropriate site for the establishment of a production base for its

nutraceutical business due to reasons such as easy accessibility to raw

materials and low operating and labor costs in the area. The Company will

systematically direct more resources to make Zhangzhou Innoessen the

Company's principal nutraceutical research and production base in China.

Mr. Wei Liu and Mr. Xinan Jiang, directors of the Zhangzhou Development

Zone, and Mr. Changshan Zhao, the Chairman of the Board, Mr. Alan Li,

Executive Director and Co-CEO and Mr. Michael Siu, Executive Director and

Chief Financial Officer of the Company attended the signing ceremony in

Zhangzhou Development Zone and signed the Agreements on behalf of Zhangzhou

Development Zone and the Company, respectively.

Mr. Changshan Zhao, Chairman of the Board, expressed his excitement at

the signing ceremony, "Setting up the new and principal production base for

our nutraceutical business in the Zhangzhou Development Zone will provide us

a solid platform to further expand our product offerings and enable us to

expand our distribution networks to service our customers, which we hope

will further strengthen the Company's position in the nutraceutical

industry."

About CTDC:

CTDC is engaged in information network security and nutraceutical

business in the People's Republic of China. CTDC's existing major

shareholder is Beijing Holdings Limited, a conglomerate with over $3 billion

in total assets beneficially owned by the Beijing People's Municipal

Government. For more information, please visit our website at

www.chinactdc.com .

Forward-Looking Statement Disclosure:

This press release of the Company, which is a foreign private issuer, on

Form 6-K contains forward-looking statements within the meaning of Section

27A of the Securities Act of 1933, and Section 21E of the Securities Act of

1934. These statements relate to future events or the Company's future

financial performance. The Company has attempted to identify forward-looking

statements by terminology

including "anticipates", "believes", "expects", "can", "continue", "could", "

estimates", "expects", "intends", "may", "plans", "potential", "predict", "sh

ould", or "will" or the negative of these terms or other comparable

terminology. These statements are only predictions, uncertainties and other

factors may cause the Company's actual results, level of activity,

performance or achievements to be materially different from any future

results, level of activity, performance or achievements expressed or implied

by these forward-looking statements. The information in this Report on Form

6-K is not intended to project future performance of the Company. Although

the Company believes that the expectations reflected in the forward-looking

statements are reasonable, the Company does not guarantee future results,

level of activity, performance or achievements. The Company's expectations

are as of the date this Form 6-K is filed, and the Company does not intend

to update any of the forward-looking statements after the date this Report

on Form 6-K is filed to conform these statements to actual results, unless

required by law.

Contact:

China Technology Development Group Corporation

Michael Siu, Executive Director, Chief Financial Officer and Secretary

Tel: +852-3112-8461

Email: investor.relations@chinactdc.com

michael.siu@chinactdc.com

Source: China Technology Development Group Corporation
Keywords: Food/Beverages
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