CHANGGE CITY, China, Aug. 21 /Xinhua-PRNewswire-FirstCall/ -- Zhongpin Inc. (OTC Bulletin Board: ZHNP) ("Zhongpin"), a leading meat and food processing company in the People's Republic of China ("PRC"), announced today that it will receive a grant for $1.2 million from the Finance Department of the Central Government. The grant will be used for research and development of new products, marketing expenses and new equipment.
Zhongpin plans to use the grant to finance the expansion of a new pollution-free fruits and vegetables processing facility at the Zhongpin Industrial Park in Henan Province. The project has been approved by National Development and Reform Commission (NDRC), the macroeconomic management agency under the State Council of China, and has been listed as one of the national deep-processing agricultural product projects financed by treasury bonds.
Zhongpin expects to launch this project in the first quarter of 2008, and complete the construction at the end of 2008. The new facility is expected to process up to 30,000 metric tons of pollution-free fruits and vegetables annually. Zhongpin expects to receive the grant in the fourth quarter of 2007.
"The Chinese government is actively promoting the production of pollution-free food with low agricultural chemical residue," said by Mr. Xianfu Zhu, CEO of Zhongpin, Inc. "We are honored to receive this grant from the central government, which validates our commitment to producing high quality, nutritious foods. Our new facility will broaden our product lines for fruits and vegetables and enhance our revenue growth."
About Zhongpin
Zhongpin is a meat and food processing company that specializes in pork and pork products and vegetables and fruits, in the PRC. Its distribution network in the PRC spans more than 20 provinces and includes over 2,800 retail outlets. Zhongpin's export markets include the European Union, Eastern Europe, Russia, Hong Kong, Japan, and South Korea. For more information, contact CCG Elite directly or visit Zhongpin's website at http://www.zpfood.com .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Zhongpin's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: unanticipated changes in product demand, interruptions in the supply of live pigs/raw pork, downturns in the Chinese economy, delivery delays, freezer facility malfunctions, poor performance of the retail distribution network, changes in applicable regulations, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission.
For more information, please contact:
Crocker Coulson, President
Leslie Richardson, Financial Writer
CCG Elite
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Yuanmei Ma, Chief Financial Officer
Zhongpin Inc.
Tel: +86-010-82861788
