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Shengtai Pharmaceutical, Inc. Sets Up New Sales Departments to Accommodate Anticipated Ramp in Operations of New Glucose Facility

2008-07-23 14:25 1546

WEIFANG, Shandong, China, July 23 /Xinhua-PRNewswire-FirstCall/ -- Shengtai Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) ("Shengtai Pharmaceutical" or "the Company"), a leading manufacturer and distributor of high-quality, pharmaceutical grade glucose products in China, today announced that the Company has taken several steps to accommodate the anticipated ramp in the new glucose facilities’ operations.

The Company has successfully completed the trial production and quality tests of the new glucose facility and started its official operation at the beginning of July 2008. This new facility combined with the Company’s existing glucose facility will provide initial total production capacity of 180,000 metric tons (expandable to 210,000 metric tons) of glucose per year. As Shengtai Pharmaceutical increases the capacity utilization of its new glucose facility, glucose production should more than double from current levels over the next year.

In order to better serve the domestic market with the additional supply, the Company has recruited new sales staff and divided the original glucose sales department into three sales departments by product line: 1) monohydrate glucose, 2) anhydrous glucose and 3) food and beverage grade glucose. It also promoted a sales director, Mr. Hao, who successfully set up the existing cornstarch sales department in the past two years. Mr. Hao has a strong background in sales administration in the cornstarch and glucose industry. Management and the sales department have also developed detailed sales plans for the sales staff, clients, targeted regions, and timelines as well as incentive policies.

"Previously, we were in short supply to meet the robust demand from both our domestic and international clients. The steps we are taking will ensure we can accommodate the increased sales. We will also emphasize our glucose exporting business, where we have a competitive advantage due to lower and more stable domestic corn prices versus rising international corn prices. Our glucose exports in fiscal year 2009 are expected to double, compared to our last fiscal year," commented Mr. Qingtai Liu. "We expect the new glucose facility will reach its full operating rate by December 2009 with rapidly rising sales. With most of the cornstarch we produce consumed internally to produce glucose, our gross margin will increase. Our fast growing glucose business should further expand Shengtai Pharmaceutical’s market share in China, strengthening our ability to control our selling prices and maximize our profitability."

About Shengtai Pharmaceutical, Inc.

Shengtai Pharmaceutical, Inc. through its wholly-owned subsidiary Shengtai Holding, Inc. (SHI), a New Jersey corporation, and the Chinese operating company of Weifang Shengtai Pharmaceutical Co., Ltd., is a leading manufacturer and supplier of pharmaceutical grade glucose used for medical purposes, and the glucose and cornstarch products for the food and beverage industry and for industrial production in China. For more information about Shengtai Pharmaceutical, Inc., please visit http://www.shengtaipharmaceutical.com .

Safe Harbor Statement

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by the Company, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding our ability to prepare the company for growth, the Company’s planned capacity expansion in 2008 and predictions and guidance relating to the Company’s future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand especially in the pharmaceutical industry, pricing and demand trends for the Company’s products, changes to government regulations, risk associated with operation of the Company’s new facilities, risk associated with large scale implementation of the company’s business plan, the ability to attract new customers, ability to increase its product’s applications, cost of raw materials, downturns in the Chinese economy, and other information detailed from time to time in the Company’s filings and future filings with the United States Securities and Exchange Commission. Investors are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, please contact:

Company Contact:

Ms. Melody Shi

CFO

Shengtai Pharmaceutical, Inc.

Tel: +1-949-468-7078

Email: shengtaicfo@hotmail.com

Web: http://www.shengtaipharmaceutical.com

Investor Relations Contact:

Mr. Crocker Coulson

President

CCG Investor Relations

Tel: +1-646-213-1915 (NY Office)

Email: crocker.coulson@ccgir.com

Web: http://www.ccgir.com

Source: Shengtai Pharmaceutical, Inc.
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