China YCT International Group, Inc. Announces Entrusted Management Agreement With Its Primar...( NEW YORK April 7 2008 /Xinhua-- C...)

NEW YORK, April 7, 2008 /Xinhua-PRNewswire-FirstCall/ -- China YCT International Group Inc. (OTC Bulletin Board: CYIG) today announced that its wholly owned subsidiary, Shandong Spring Pharmaceutical Co., Ltd, has entered into an Entrusted Management Agreement with Shandong Yong Chun Tang Bioengineering Co. Ltd., effective as of April 4, 2008. The agreement provides that Shandong Spring Pharmaceutical will manage the operations of Shandong Yong Chun Tang, in exchange for all of the net profits earned by Shandong Yong Chun Tang. Shandong Yong Chun Tang is the primary supplier of products marketed by Shandong Spring Pharmaceutical. The companies also announced that they intend to enter into a strategic relationship to integrate and distribute Shandong Yong Chun Tang's gingko products using Shandong Spring Pharmaceutical's advanced logistics solutions.

At the same time, the parties entered into a Purchase Option and Cooperation Agreement with Yan Tinghe, who is the Chairman of China YCT International Group, Inc. and principal owner of Shandong Yong Chun Tang. The Purchase Option gives Shandong Spring Pharmaceutical the right to purchase Shandong Yong Chun Tang at a fair value price to be determined by the parties at the time the option is exercised. Mr. Yan also gave to Shandong Spring Pharmaceutical a proxy to exercise his voting rights as a shareholder of Shandong Yong Chun Tang.

Commenting on the announcement, Yan Tinghe, Chairman of China YCT International Group, Inc., said, "Today's agreement accomplishes our goal of focusing our organization, while also establishing a long-term relationship with Shandong Spring Pharmaceutical., Ltd that will be beneficial to both companies. Our newly distribution management team, professional staff, and financial resources can now concentrate on establishing meaningful market share, awareness, and industry appreciation for gingko products."

Commenting on the synergies of the companies' planned strategi
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