XI'AN, China, Oct. 7 /Xinhua-PRNewswire-FirstCall/ -- Huifeng Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB; the "Company"), a leading developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production in Xi'an, China, is pleased to announce the signing of a formal exclusive management agreement with Xi'an Qinba Xintong Medical Ltd ("Qinba"). On Sept 5, 2008 the company announced a Letter of Intent to enter into a contractual arrangement with Qinba.
Under the terms of this arrangement, Huifeng will assume operational control of Qinba and will receive a management fee equal to 70% of Qinba's total profit.
Mr. Jing'An Wang, CEO and founder stated "This is Huifeng's first step toward our vertical integration strategy, and we intend to transform the company from a producer of raw materials for the Traditional Chinese Medicine industry to a full-scale pharmaceutical company supplying end products to consumers worldwide".
"As a franchiser of finished medical devices, Qinba will give Huifeng immediate access to pharmacy and medicine buyers," said CEO Wang. "With this management agreement, Huifeng has taken the first step toward positioning itself for synergistic growth beyond its core revenue base."
"Now that we have completed the first vertical integrations, we have proven our ability to attract accretive deals within the People's Republic of China," continued Mr. Wang. "Moving forward, we hope to close on several larger strategic partnerships."
Huifeng issued an 8K filing pertaining to this agreement on September 29. To read the text of the filing, go to http://www.premierstocks.tv/info/hfgb_8k.pdf
About Huifeng Bio-Pharmaceutical Technology, Inc. (HFGB)
Huifeng Bio-Pharmaceutical Technology, Inc., located in Xi'an, People's Republic of China, develops and produces plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production. It is the leading Chinese producer of rutin and related plant-derived chemicals in a class called flavonoids, with medicinal and other beneficial properties in Xi'an China. Founded in 2002, Huifeng uses proprietary patented processes to extract rutin more efficiently than traditional extraction techniques. The Company is diversifying its product lines through internal development, acquisition and cooperation with scientific research organizations. http://www.hfgb.cn/
This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of the Company's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward- looking statements, including but not limited to the fluctuation of prices of raw materials, the market demand for our products, changes in governmental regulations and/or economic policies and our ability to penetrate new markets.
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