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China Marine Details Success of Shanghai-Based Convenience Store Chain Sales

2009-05-31 11:50 514

Initial Roll Out of China Marine Seafood-Based Snack Foods Gaining Traction as The Store Chain Expands Program to Over 500 Locations

SHISHI, China, May 29 /PRNewswire-Asia/ -- China Marine Food Group Ltd. (OTC Bulletin Board: CMFO), a China-based processor and distributor of seafood-based snack foods and sales of fresh and frozen processed seafood, today announced that the initial success of the Company's products roll out by a Shanghai-based convenience store chain has led the chain to significantly increase the number of store locations carrying its Mingxiang(R) brand of seafood snacks from 100 to over 500 stores.

Announced in March of this year, the contract between the Shanghai-based convenience store chain and China Marine's Shanghai-based distributor is gaining momentum. As part of the initial roll out, approximately 100 stores within the chain's 1200 store network were serviced with a selection of China Marine's seafood-based snack foods throughout Shanghai and the Jiangsu province. In each store, China Marine's products were positioned in a prominent location in the snack-food aisle. At some locations, promotional efforts included taste-testing and samples for customers new to China Marine's Mingxiang(R) brand of products. Each store maintained at least three of China Marine products on display, including barbecued squid, sliced barbecued squid and sliced roasted octopus. On average, stores throughout the chain will be replenished at least twice a month through the Company's Shanghai distributor. Retail sales of China Marine's products through this program contributed about 5% of the Company's total revenues in the first quarter of 2009. Management estimates that sales from the greater Shanghai region could reach approximately 10% of the Company's total revenues in the 2009 calendar year.

"During April, we experienced a 50% increase in sales volume to the chain as compared to March. The success of our program with this Shanghai-based convenience store chain provides support to growing trends we have seen for healthy snack foods in China which are driving increased consumer demand for high-quality, branded and certified foods," began Pengfei Liu, CEO and Chairman of China Marine. "The GreenFood(R) certification our products carry is proving to be a new market standard for food safety and quality. Our packaging also includes a direct number to our offices in ShiShi where we can field consumer calls on our products - yet another important component for consumer confidence."

Beginning in 2009, China Marine expanded its capacity 50% to meet the increased demand for its products and to prepare for opportunities like cooperation with chain stores. Total capacity of the ShiShi facility is now 10,000 tons annually, up from 6,600 tons in 2008. The Company's marketing and sales efforts are focused on developing similar programs for other retail food chains in the supermarket and convenience store segments.

About China Marine

China Marine Food Group Ltd. processes and distributes seafood-based snack foods, and fresh and frozen marine catch to six provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its "Mingxiang" brand as a category leader in 2,000 retail sales points in the PRC. The Company has received "The Famous Brand" and "Green Food" awards. The Company is located in the Fujian Province, one of the largest coastal provinces in the PRC and a vital navigation hub between the East China Sea and the South China Sea. The Company is committed to the highest standard of quality control with the ISO9001, ISO14001, HACCP certification and the EU export registration.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements that reflect the Company's current views with respect to future events and financial performance. All statements other than statements of historical fact included in this release are forward-looking statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may," "will," "plan," "expect," "project", "intend," "estimate," "anticipate," "believe" or "continue" or their negative or variations or similar terminology. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. For an explanation of some of the risks and uncertainties facing the Company and its investors, please see our most recent annual report on Form 10K on file with the Securities Exchange Commission. The risk factors contained therein should be considered by prospective investors for their potential impact on forward-looking statements included in this release. These important factors, among others that might not be listed, may cause actual results to differ materially and adversely from the results expressed or implied by the forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

This press release shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. No offering of securities shall be made except by means of a joint proxy statement/prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Company Contact:

Marco Hon Wai KU, CFO

Suite 815, 8th Floor

Ocean Centre, Harbour City

Kowloon, HONG KONG

Tel: +852-2111-8768

Email: marco.ku@china-marine.cn

Web: http://www.china-marine.cn

Investor Relations Contact

John Mattio, SVP

HC International, Inc

56 June Road, North Salem NY

Tel: +1-914-669-5340 (U.S.)

Email: john.mattio@hcinternational.net

Web: http://www.hcinternational.net

Source: China Marine Food Group Ltd.
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Keywords: Food/Beverages
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