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China-Biotics, Inc. Supplies Probiotics as Additive for Poultry Feed

SHANGHAI, April 22 /PRNewswire-Asia-FirstCall/ -- China-Biotics, Inc. (Nasdaq: 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 signed an agreement with Dabeinong Group ("Dabeinong") to supply probiotics as bulk additives for poultry feed products.

Under the initial purchase order, which has already begun shipping, China-Biotics will provide probiotics such as lactobacillus acidophilus and streptococcus faecalis. These bulk additives will be used in several of Dabeinong's products and will help enhance the avian immune system and increase poultry survival and egg production rates in commercially raised poultry.

"We are delighted to supply probiotics to the poultry feed industry for the first time," said Mr. Jinan Song, China-Biotics' Chairman and Chief Executive Officer. "This agreement allows China-Biotics to enter an important new market segment, which we believe could become a significant driver of future growth. Improving the health and safety of commercial poultry is of the utmost importance to the Chinese government, as well as increasingly health-conscious consumers. We continue to demonstrate the appeal of our strong product quality and prompt technical support, which is enabling us to increase our market share in China. We look forward to cultivating additional long-term relationships with new commercial partners as we continue to expand the number of commercial applications for probiotics."

Founded in 1993 and headquartered in Beijing, Dabeinong is engaged in manufacturing and distributing animal feed, pesticides, animal medicines, seed and bacterin. With 5,000 employees, Dabeinong operates more than 40 affiliated companies, 500 retail stores and 1,000 county-level agricultural training centers.

China-Biotics expects that the demand for probiotics from the poultry feed market in China will increase to up to 2,500 metric tons by 2010.

To date, the Company has established a wide variety of business relationships with commercial customers located in Beijing and Shanghai cities and Jiangsu, Jiangxi, Qinghai, Shaanxi, Shandong and Zhejiang provinces. These growing companies are among the leaders in the baked foods, dairy, poultry feed and pharmaceutical industries.

About Dabeinong Group

Founded in 1993 and headquartered in Beijing, Dabeinong Group ("Dabeinong") is engaged in manufacturing and distributing animal feed, pesticide, animal medicines, seed, and bacterin. With 5,000 employees, Dabeinong operates more than 40 affiliated companies, 500 retail stores, and 1,000 county-level agriculture training centers. For more information, please visit .

About China-Biotics, Inc.

China-Biotics, Inc. ("China-Biotics," "the Company"), 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 is strategically expanding its production capacity of probiotics to meet growing demand in the bulk additive market. For more information, please visit .

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to market existing and new products, changes from anticipated levels of sales, future national or regional economic and competitive conditions, market acceptance of its retail store concept, changes in relationships with customers, dependence on its flagship product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For more information, please contact:

     CCG Investor Relations
     Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)

SOURCE China-Biotics, Inc.
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