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China-Biotics, Inc. Receives Approval to Begin Construction on Large-Scale Manufacturing Facility
Date:11/30/2007

SHANGHAI, China, Nov. 30 /Xinhua-PRNewswire-FirstCall/ -- China-Biotics, Inc. (OTC Bulletin Board: CHBT) ("China-Biotics", "the Company"), a leading Chinese firm specializing in the manufacture, research, development, marketing and distribution of probiotics products, today announced it has received government approval to begin construction on a proposed 150-metric-ton-per- year manufacturing facility in order to meet expanding demand for probiotics in the bulk additive market.

"This marks a crucial milestone in the success of our bulk additives strategy, and will create the foundation for a successful expansion in this growing market," said Mr. Jinan Song, Chairman and Chief Executive Officer of China-Biotics. "Customers are selecting China-Biotics because of our industry-leading shelf life versus the domestic alternatives and our lower price points when compared to the imports. When completed, our new plant will allow us to meet the rapidly increasing need."

With local government approval in hand, the Company plans to begin construction in early December on the new manufacturing facility in Shanghai, which will be able to produce 150 metric tons of probiotics per year. Construction of the new plant is projected to cost $18 million, which will be funded from existing cash and operating cash flow. The new facility will expand production capacity from the Company's current level of nine metric tons per year.

When completed during the 2009 fiscal year, the Company believes the new plant will be the only large-scale probiotics plant in China that supplies the domestic bulk additive market.

About China-Biotics, Inc.

Headquartered in Shanghai, China-Biotics, Inc. ("China-Biotics", "the Company") was founded in 1999 and is one of China's largest suppliers of probiotics. Probiotics are beneficial live bacteria used as dietary supplements and food additives to improve intestinal health and digestion. The Company's product portfolio
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SOURCE China-Biotics, Inc.
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