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Zhongpin Inc. Increases Prepared Meat Products Capacity by 75%

2007-04-05 09:30 1450

CHANGGE CITY, HENAN PROVINCE, China, April 5 /Xinhua-PRNewswire/ --

Zhongpin Inc. (OTC Bulletin Board: ZHNP) ("Zhongpin"), a leading meat and food

processing company in the People's Republic of China ("PRC"), today announced

that it has increased its capacity for prepared meat products by an additional

10,800 metric tons, or 75%, bringing total capacity to 25,200 metric tons

annually.

The additional capacity of prepared meat products has been added to the

Company's main production factory, Zhongpin Industry Park, which is located in

Changge City, Henan Province. The Company's prepared meats include a variety

of popular sausages, such as Taiwanese grilled sausage, hotpot sausage and

breakfast sausage. The $3.0 million expansion adds production capacity of 30

metric tons per 8-hour working day, or approximately 10,800 metric tons on an

annual basis, and is equipped with automated start-of-art technology for

efficient processing. The Company began production of prepared meats on the

new lines at the end of March 2007.

"Our prepared meat products have been well accepted by consumers and

wholesale clients in the Central and Northeastern China markets," commented Mr. Xianfu Zhu, Chairman of Board and CEO of Zhongpin. "We have implemented a

creative marketing campaign and deepened our distribution channels, both of

which have resulted in increased market demand for our prepared meat products.

The combination of new products and additional capacity should enhance margins

from our prepared meat products lines."

About Zhongpin Inc.

Zhongpin is a meat and food processing company that specializes in pork

and pork products, and vegetables and fruits, in the PRC. Its distribution

network in the PRC spans more than 20 provinces and includes over 2,290 retail

outlets. Zhongpin's export markets include the European Union, Eastern Europe, Russia, Hong Kong, Japan and South Korea. For more information,

visit the company's website at http://www.zpfood.com or contact CCG Elite

directly.

Safe Harbor Statement Under the Private Securities Litigation Reform Act

of 1995: Forward-looking statements are statements that are not historical

facts. Such forward-looking statements are based upon the current beliefs and

expectations of Zhongpin's management and are subject to risks and

uncertainties, which could cause actual results to differ from the forward-

looking statements. The following factors, among others, could cause actual

results to differ from those set forth in the forward-looking statements:

unanticipated changes in product demand, interruptions in the supply of live

pigs/raw pork, downturns in the Chinese economy, delivery delays, freezer

facility malfunctions, poor performance of the retail distribution network,

changes in applicable regulations, and other information detailed from time to

time in the Company's filings and future filings with the United States

Securities and Exchange Commission.

Contact:

Crocker Coulson, President Yuanmei Ma, Chief Financial Officer

Leslie Richardson, Financial Writer Zhongpin Inc.

CCG Elite 86-010-82861788

646-213-1915

crocker.coulson@ccgir.com

Source: Zhongpin Inc.
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