China-Biotics, Inc. to Supply Probiotics to Relax Xinqiao Food Co.

2007-10-30 14:00 2811

SHANGHAI, China, Oct. 30 /Xinhua-PRNewswire-FirstCall/ -- China-Biotics, Inc. (OTC Bulletin Board: CHBT) ("China-Biotics", "the Company"), a leading Chinese firm specializing in the manufacture, research, development, marketing and distribution of probiotics products, today announced it has signed a two-year letter of intent with Shanghai Relax Xinqiao Food Co., Ltd. ("Relax Xinqiao") to supply probiotics for the Relax Xinqiao’s baked products. The agreement runs through September 2009.

"We are pleased to begin this partnership with Relax Xinqiao, which is highly regarded in Shanghai and Jiangsu Provinces," said Mr. Jinan Song, China-Biotics’ Chairman and Chief Executive Officer. "This marks the first time Shining Probiotics will be used as a baking ingredient and demonstrates the expanding reach and growing acceptance of our high-quality probiotics. We believe our expertise in the application of probiotics as food additives will continue to attract more business opportunities in this rapidly growing market."

Relax Xinqiao will use a combination of two Shining Probiotics products, Lactobacillus acidophilus and Bifidobacterium bifidum ("LA-BB"), in its newly introduced bakery products, such as probiotics mousse cake and probiotics iced dessert. LA-BB helps to further break down cream and sugar into vitamins, peptides and amino acids. LA-BB is also helpful in maintaining a balanced gastrointestinal tract.

In addition to its dietary supplement products such as Shining Essence, China-Biotics supplies Shining Probiotics as additives to food manufacturers for use in other new products, including in ice cream. The demand for probiotics in China is expected to increase dramatically as consumers become more health-conscious and the Chinese government promotes public nutrition programs on a nationwide basis.

About Shanghai Relax Xinqiao Food Co., Ltd.

As a well-known local baked goods manufacturer and distributor, Shanghai Relax Xinqiao Food Co., Ltd. has a production base of more than 20,000 square meters. It has a large product portfolio that includes bread, mousse and pastries. With nearly 100 retail stores in Shanghai and Jiangsu Province, Relax Xinqiao is well-recognized in the great Shanghai area. For more information, please visit .

About China-Biotics, Inc.

Headquartered in Shanghai, China-Biotics, Inc. ("China-Biotics", "the Company") was founded in 1999 and is one of China’s largest suppliers of probiotics. Probiotics are beneficial live bacteria used as dietary supplements and food additives to improve intestinal health and digestion. The Company’s product portfolio contains live microbes made with proprietary technology. Currently, these products are sold over-the-counter under the "Shining" brand through large distributors to more than 1,000 pharmacies and 100 supermarkets in Shanghai, Jiangsu and Zhejiang. Shining is one of the most recognized brands in Shanghai. China-Biotics plans to expand its retail sales to other major cities in China and expects to launch 300 Shining brand logistic centers in these cities during the next two years. The Company’s flagship product, "Shining Essence," has been a profit driver since its launch in April 2001. There is a significant demand for probiotics for use in the bulk additive market, which is currently met by imports. China-Biotics is building a new plant that will increase its production capacity manyfold to capture this market.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company’s ability to market existing and new products, ability to access capital for expansion, changes from anticipated levels of sales, future national or regional economic and competitive conditions, completion of the above mentioned contract with Shanghai Relax Xinqiao Food Co., changes in relationships with customers, dependence on its flagship product profits 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.

For more information, please contact:

CCG Elite Investor Relations

Crocker Coulson, President

Tel: +1-646-213-1915 (New York)


Source: China-Biotics, Inc.
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