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Synutra Provides Update on Infant Formula Allegations Media Coverage

2010-08-12 20:54 1807
    QINGDAO, China and ROCKVILLE, Md., Aug. 12 /PRNewswire-Asia/ -- Synutra International, Inc. (Nasdaq: SYUT), a leading infant formula company in China and a producer, marketer and seller of nutritional products for infants, children and adults, today provided an update on media coverage of infant formula allegations by highlighting the following articles. 

    -- Fonterra's Official Announcement
    Fonterra Cooperative Group Ltd., a supplier of milk powder to Synutra International, announced on August 11, 2010 that it remains 100% confident in the quality of its products. It stated that New Zealand's strict legislative controls prohibit the use of Hormonal Growth Promotants (HGPs) on milk producing cows. For more details, please see http://tinyurl.com/2dng5la . 

    -- Experts Find No Direct Links Between Premature Development and Synutra's Infant Formula
    CBN reported today that a panel of experts, assembled by the Ministry of Health on August 11, 2010 to investigate the premature development claims in Hubei, found no evidence to link the three infant girls' premature development with Synutra's infant formula. For more details, please see http://www.yicai.com/news/2010/08/389899.html .

    -- Expert Believes Artificial Hormones were not Added to Cow Feed
    The Jinghua Times reported that Shuhuai Wang, a researcher with China's Institute of Veterinary Drug Control, stated during an interview regarding hormones that companies would not add artificial estrogen hormones to cow feed as it will disrupt milk production. For more information, please see http://news.sina.com.cn/h/2010-08-11/013520868785.shtml .

    As additional material information becomes available, Synutra will continue to provide updates on the situation.  

    About Synutra International, Inc. 

    Synutra International Inc. (Nasdaq: SYUT) is a leading infant formula company in China. It principally produces, markets and sells its products under the "Shengyuan" or "Synutra" name, together with other complementary brands. It focuses on selling premium infant formula products, which are supplemented by more affordable infant formulas targeting the mass market as well as other nutritional products and ingredients. It sells its products through an extensive nationwide sales and distribution network covering 30 provinces and provincial-level municipalities in China. As of June 30, 2010, this network comprised over 560 independent distributors and over 1,000 independent sub-distributors who sell Synutra products in over 74,000 retail outlets. 

    Forward-looking Statements

    This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations, assumptions, estimates and projections about Synutra International Inc. and its industry. All statements other than statements of historical fact in this release are forward-looking statements. In some cases, these forward-looking statements can be identified by words or phrases such as "anticipate," "believe," "continue," "estimate," "expect," "intend," "is/are likely to," "may," "plan," "should," "will," "aim," "potential," "continue," or other similar expressions. The forward-looking statements included in this press release relate to, among others, Synutra's goals and strategies; its future business development, financial condition and results of operations; the expected growth of the nutritional products and infant formula markets in China; market acceptance of the Company's products; adverse effects associated with the melamine contamination incident; Synutra's expectations regarding demand for its products; Synutra's ability to stay abreast of market trends and technological advances; competition in the infant formula industry in China; PRC governmental policies and regulations relating to the nutritional products and infant formula industries, and general economic and business conditions in China. These forward-looking statements involve various risks and uncertainties. Although Synutra believes that the expectations expressed in these forward-looking statements are reasonable, these expectations may turn out to be incorrect. Synutra's actual results could be materially different from the expectations. Important risks and factors that could cause actual results to be materially different from expectations are generally set forth in the "Item 1. Business," "Item 1A. Risk Factors," "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," and other sections in Synutra's Form 10-K filed with the Securities and Exchange Commission on June 9, 2010. The forward-looking statements are made as of the date of this press release. Synutra International Inc. undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events. 

    For further information, please contact: 

     Synutra International, Inc.  
     Investor Relations Department
     Phone: +1-301-840-3881 
     Email: ir@synutra.com 
Source: Synutra International, Inc.
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