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Kiwa Signs Letter of Intent with Huaxing Animal Medicine
Date:12/20/2007

BEIJING and CLAREMONT, Calif., Dec. 20 /Xinhua-PRNewswire-FirstCall/ -- Kiwa Bio-Tech Products Group Corporation (OTC Bulletin Board: KWBT), ("the Company" and "Kiwa") announced that it has signed Letter of Intent with Shijiazhuang Huaxing Animal Medicine Co., Ltd. ("Huaxing") on December 18, 2007. Both parties agreed that Kiwa will invest in Huaxing and transform it to a Sino-foreign joint-venture company ("new joint-venture") through expansion of Huaxing's capital. Kiwa will control a majority of the new joint-venture's equity. Both sides also agreed to start Due Diligence as soon as possible after the signing of the Letter of Intent.

Huaxing was founded in 1996. Huaxing is supported by animal husbandry and veterinary medicine agencies at both provincial and municipal levels. Huaxing has focused on building strong co-operative relationships with academic institutions such as the Agricultural University of Heibei and Hebei University of Science & Technology. Huaxing has developed: 12-series of animal medicines and disinfectants, over 200 products for flocks and herds, pigs, furry animals and pets. Huaxing holds 82 approval document numbers for veterinary drug products. Huaxing was inspected by the Ministry of Agriculture of the People's Republic of China ("Ministry of Agriculture") and was awarded the GMP qualification in January 2005. Huaxing's distribution channel covers all of China with exception of Taiwan and Tibet. Huaxing has become a modern high-tech veterinary drug enterprise recognized as a strong force in R&D, manufacturing and also distribution.

The CEO and concurrently Board Chairman of Kiwa, Mr. Wei Li stated, "Huaxing is a modern high-tech company with a profound heritage in the veterinary drug industry. It has strong Research and Development (R&D) capability, is equipped with Good Manufacturing Process (GMP) - qualified factory lines and integrated sales and distribution networks. The cooperation with Kiwa will not only bring Hu
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SOURCE Kiwa Bio-Tech Products Group Corporation
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