China Nutrifruit Announces Technological Upgrades to Glazed Fruit and Concentrate Juice Production Lines

DAQING, Heilongjiang, China, June 22, 2011 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today announced that the Company is currently making technological upgrades to its glazed fruit production line in Daqing and concentrate juice production line in Mudanjiang. The Company expects to complete the upgrade process by July 2011. The Company also announced plans to begin production of cherry tomato glazed fruit products and introduce new golden berry dried fruit products in 2011.

As part of the technological upgrade process, China Nutrifruit is currently carrying out machine maintenance activities at the Company's glazed fruit production line in Daqing and installing additional processing equipment at its concentrate juice production line in Mudanjiang. The Company expects such upgrades to enhance operational efficiency and the new processing equipment to enable production of the Company's new golden berry dried fruit products. Following technological and maintenance upgrades, the Company's concentrate juice production line in Mudanjiang will be able to produces 9,000 tons annually, up 50% from its current annual capacity of 6,000 tons per year. There will be no change in the total annual production capacity of the Company's glazed fruit production line in Daqing. The Company estimates the total capital expenditure for the technological upgrades of the glazed fruit and concentrate juice production lines to be approximately RMB32 million (approximately $4.9 million). Management expects the upgrade process to be completed before the production season starts in July 2011.

"We are committed to maximizing our operational efficiency to achieve higher productivity, improve resource and raw material utilization and expand our product portfolio. We expect to achieve enhanced margins as a result of the improved operational efficiency and expanded production capacity. As we enter into the final month leading up to this year's production season, our team is working diligently to complete the upgrade process in a timely and efficient manner. In addition, our marketing and research teams are working in close coordination on the planned production of our new cherry tomato glazed fruits and golden berry dried fruit products, which will be launched in July 2011 with limited quantity. We expect the technological upgrades combined with the new product introduction to favorably contribute to our fiscal year 2012 revenue growth and profitability," said Mr. Changjun Yu, Chairman and CEO of China Nutrifruit.

About China Nutrifruit Group Limited

Through its subsidiaries Daqing Longheda Food Company Limited and Daqing Senyang Fruit and Vegetable Food Technology Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry, seabuckthorn, blackcurrant and raspberry. Its processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 18 provinces in China. For more information, please visit http://www.chinanutrifruit.com .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such statements include, among others, those concerning our new products, our new facility and capacity expansion, and its expected impact on the Company's business and financial performance, our expectations regarding the market for our existing products and new products, our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended March 31, 2011, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.