Phoenix TV Served with Request for Public Apology
QINGDAO, China and ROCKVILLE, Md., Sept. 1 /PRNewswire-Asia-FirstCall/ -- Synutra International, Inc. (Nasdaq: SYUT), a leading infant formula company in China and a producer, marketer and seller of nutritional products for infants, children and adults, today announced that on August 27th, the Company's legal counsel served Phoenix Satellite Television Holdings Limited and its Beijing subsidiary, Phoenix New Media Inc. ("Phoenix TV"), with a request for a formal apology regarding the false statements reported by Phoenix TV. The Company has not received a response from Phoenix TV and plans to move forward through legal proceedings should its request continue to go unanswered.
Mr. Liang Zhang, Chairman and CEO of Synutra stated, "Synutra was deeply affected by the false statements reported by Phoenix TV, which linked our products to alleged cases of premature development in infants. Though further investigation and product testing have demonstrated our products are not linked to the alleged cases, the ensuing media coverage has disrupted our business operations and caused severe financial and reputational damage to us. We would like for Phoenix TV to publicly acknowledge its actions and the ensuing effects."
The Company has also received a letter of resignation due to potential conflict of interests from Mr. Ka Keung Yueng, a member of the Company's Board of Directors and an executive officer of Phoenix TV.
About Synutra International, Inc.
Synutra International Inc. (Nasdaq: SYUT) is a leading infant formula company in China. It principally produces, markets and sells its products under the "Shengyuan" or "Synutra" name, together with other complementary brands. It focuses on selling premium infant formula products, which are supplemented by more affordable infant formulas targeting the mass market as well as other nutritional products and ingredients. It sells its products through an extensive nationwide sales and distribution network covering 30 provinces and provincial-level municipalities in China. As of June 30, 2010, this network comprised over 560 independent distributors and over 1,000 independent sub-distributors who sell Synutra products in over 74,000 retail outlets.
Forward-looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations, assumptions, estimates and projections about Synutra International Inc. and its industry. All statements other than statements of historical fact in this release are forward-looking statements. In some cases, these forward-looking statements can be identified by words or phrases such as "anticipate," "believe," "continue," "estimate," "expect," "intend," "is/are likely to," "may," "plan," "should," "will," "aim," "potential," "continue," or other similar expressions. The forward-looking statements included in this press release relate to, among others, Synutra's goals and strategies; its future business development, financial condition and results of operations; the expected growth of the nutritional products and infant formula markets in China; market acceptance of the Company's products; adverse effects associated with the melamine contamination incident; Synutra's expectations regarding demand for its products; Synutra's ability to stay abreast of market trends and technological advances; competition in the infant formula industry in China; PRC governmental policies and regulations relating to the nutritional products and infant formula industries, and general economic and business conditions in China. These forward-looking statements involve various risks and uncertainties. Although Synutra believes that the expectations expressed in these forward-looking statements are reasonable, these expectations may turn out to be incorrect. Synutra's actual results could be materially different from the expectations. Important risks and factors that could cause actual results to be materially different from expectations are generally set forth in the "Item 1. Business," "Item 1A. Risk Factors," "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," and other sections in Synutra's Form 10-K filed with the Securities and Exchange Commission on June 9, 2010. The forward-looking statements are made as of the date of this press release. Synutra International Inc. undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.
For more information, please contact:
Synutra International, Inc.
Investor Relations Department
Email: ir@synutra.com
Tel: +1-301-840-3881
