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China-Biotics, Inc. Retains KPMG for the Implementation of Sarbanes-Oxley Act Section 404
Date:10/16/2008

SHANGHAI, China, Oct. 16 /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 that it has engaged the Shanghai office of KPMG Advisory (China) Limited ("KPMG Shanghai") to assist the Company in complying with the financial reporting and controls requirements of Sarbanes-Oxley Act Section 404 ("SOX 404").

KPMG Shanghai's engagement is designed to assist China-Biotics as it complies with SOX 404, which requires the Company and its external auditor to report on the adequacy of the Company's internal financial reporting and controls systems after documenting and testing financial reporting and control procedures.

"We are pleased to have engaged KPMG in this important mission, as we seek to ensure that China-Biotics is in full compliance with the requirements of the Sarbanes-Oxley Act," said Mr. Jinan Song, China-Biotics' Chairman and Chief Executive Officer. "As we prepare for our debut on the Nasdaq Global Market on October 23, 2008, we believe this necessary undertaking will also enhance shareholder confidence in the Company's financial reporting standards."

About China-Biotics, Inc.

China-Biotics, Inc., a leading manufacturer of biotechnology products and supplements, engages in the research, development, marketing and distribution of probiotics dietary supplements. Through its wholly owned subsidiary, Shanghai Shining Biotechnology Co., Ltd., the Company has operations in Shanghai. Its proprietary product portfolio contains live microbial nutritional supplements under the "Shining" brand. Currently, the products are sold OTC through large distributors to pharmacies and supermarkets in Shanghai, Jiangsu, and Zhejiang. China-Biotics plans to launch 300 Shining brand retail outlets in major cities in China. Currently, China-Biotics
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