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Kiwa Bio-Tech Joint Venture to Produce Preventative for Avian Flu
Date:5/27/2008

Kiwa Bio-Tech & Hebei Huaxing Pharmaceuticals Co., Ltd form Hebei Kiwa

Huaxing Bio-Pharmaceuticals Co., Ltd.

BEIJING and CLAREMONT, Calif., May 27 /Xinhua-PRNewswire-FirstCall/ -- Kiwa Bio-Tech Products Group Corporation (OTC Bulletin Board: KWBT) announced entry into a contract for a joint venture named Hebei Kiwa Huaxing Bio-Pharmaceuticals Co., Ltd. The joint venture company aims at developing and producing Kiwa's AF-01 anti-viral preventative for avian flu. Kiwa Bio-Tech and Hebei Huaxing Pharmaceuticals Co., Ltd. (''Huaxing'') held a ceremony recognizing their cooperation on May 22, 2008.

Under the terms of the contract, Kiwa Bio-Tech owns 70% of the equity of the joint venture and Huaxing owns 30%. For more details about the contract, please refer to 8-K filed with the SEC.

Mr. Ruijun Li, General Manager of Huaxing, noted, ''The combination of our companies' marketing network, technology, manufacturing expertise is expected to support the growth of the joint venture.''

Mr. Wei Li, Chairman and CEO of Kiwa, stated, ''we are pleased that Kiwa will now be able to aggressively pursue commercial development of AF-01 and veterinary pharmaceuticals as the third segment of its business. Now along with continued growth of bio-feed and rapid expansion of bio-fertilizers, Kiwa will be able to manufacture and market AF-01 Anti-viral Aerosol.''

ABOUT AF-01 ANTI-VIRAL AEROSOL

In May 2006 Kiwa acquired AF-01 Anti-viral Aerosol technology for veterinary medicine applications including the exclusive production right and other related rights to produce an anti-viral aerosol drug for use with animals from Jinan Kelongboao Bio-Tech Co., Ltd. ("JKB"), which is affiliated with Chinese Academy of Medical Sciences. The AF-01 aerosol technology is a broad-spectrum anti-viral agent with potent inhibitory and/or viricidal effects on a variety of RNA viruses found in animals and fowls such as bird flu. Kiwa's hope is to
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SOURCE Kiwa Bio-Tech Products Group Corporation
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