China Nutrifruit Begins Fiscal Year 2012 Production Season

DAQING, China, July 27, 2011 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today announced that the Company commenced its fiscal year 2012 production operations on July 25, 2011.

China Nutrifruit's production season typically spans from mid July to mid November each year. The Company engages in selling, product distribution activities and research and development initiatives throughout the year to monitor market demand and changes in consumer tastes. During the fiscal year 2012 production season, the Company will introduce a series of new products, including fruit and vegetable powder products, concentrate paste products, cherry tomato glazed fruit products and golden berry dried fruit products, through its well-established nation-wide distribution network.

"Our fiscal year 2012 production season marks an important milestone as with the launch of our new fruit and vegetable powder products and new concentrate paste products, we will extend the production period for our powder products beyond our typical harvest season. This is mainly because we can utilize our concentrate paste products as raw materials for production of our fruit and vegetable powder products and therefore extend our production season. We believe this will have a positive impact on our revenue growth, resource efficiency and profitability," commented Mr. Changjun Yu, Chairman and CEO of China Nutrifruit.

"In addition, we have completed technological upgrades to our glazed fruit production lines in Daqing and completed installation of additional processing equipment at our concentrate juice production lines in Mudanjiang, increasing our annual concentrate juice production capacity by 50% to reach 9,000 tons. Such upgrades will result in improved operational efficiency and higher productivity, while expanding our product portfolio as we begin production of our new cherry tomato glazed fruit products and golden berry dried fruit products. We expect the technological upgrades combined with the new product introductions to favorably contribute to our fiscal year 2012 results and are confident in our ability to achieve our projected revenue of approximately $110 million to $113 million and net income of approximately $29 million to $30 million in fiscal year 2012."

About China Nutrifruit Group Limited

Through its subsidiaries Daqing Longheda Food Company Limited and Daqing Senyang Fruit and Vegetable Food Technology Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry, seabuckthorn, blackcurrant and raspberry. Its processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 18 provinces in China. For more information, please visit http://www.chinanutrifruit.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our new products, our new facility and capacity expansion, expansion of our production period, upgrade of production line and their expected impact on the Company's business, financial performance and resource efficiency, our expectations regarding the market for our existing products and new products, our expected financial performance in fiscal year 2012 and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended March 31, 2011, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.