Company Remains Confident in Product Quality, Ingredients and Stringent Testing Methods
QINGDAO, China and ROCKVILLE, Md., Aug. 10 /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 released the following public comment in response to a media report in China which linked hormone levels in the Company's milk powder with alleged premature development and sexual precocity.
Mr. Liang Zhang, Chairman and CEO of Synutra stated, "Certain parties in the media recently attempted to create a crisis by linking our products to premature development and precocity in children. These claims are highly irresponsible and based on speculation instead of scientific evidence. Certain members of the media promulgated these claims despite the fact that many different external factors have been linked to premature development in children, and, additionally, China's CDC and several leading scientists already stated publicly that there was no evidence linking our products to such symptoms.
"As a well-known and trusted provider of infant formula in China, we are completely confident that our products are safe and our quality levels are industry-leading. We do not add hormones to our products and we have invested heavily in research, quality control, formulations and ingredients. We have participated in exhaustive quality testing at all required government levels, including with the relevant state agencies and industry groups. Additionally, our upstream ingredient suppliers are also reliable and trusted around the world.
"Recently, we have worked closely with state authorities, including the Chinese Dairy Association and the Office of Food Safety, to test product samples to prove that these claims are false. We expect that the results of these tests should be made public soon, and we hope that they are published expeditiously. We firmly believe they will illustrate our unwavering product quality and commitment to consumer safety.
"We are in the process of taking legal action to protect our brand, and we intend to prosecute the parties responsible for these accusations to the furthest extent possible."
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.
Source: Synutra International, Inc.
