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Nutrastar International Inc. Announces Record Second Quarter 2010 Results
Date:8/16/2010

rowing at a healthy rate. On a quarterly basis, revenues increased by roughly 63.4% and EPS reached $0.12, outstanding growth given the current volatile economic environment."

Ms. Han continued, "Since the second quarter ended, we announced a few important measures that will prepare the company for significant expansion and growth in the time ahead. We plan to expand our manufacturing capabilities by over 30%, increasing our production capacity to 72 tons by the end of 2010. In addition to expanding our production capacity, we are also continuously seeking to further our geographical footprint and diversify our Golden Grass product pipeline. We announced in July 2010 the signing of a product purchase agreement with Century Brighton Holdings, which will further expand our customer base and penetration into the lucrative Hong Kong market. We also announced the patent application of our Golden Grass wine and oral liquids which we anticipate will be in trial production in Q1 2011. It's expected that with our increased production capabilities, continued efforts on the R&D side, as well as further expansion of distribution network, Nutrastar will show consistent growth on both the revenue side and product side going forward."

For more information regarding Nutrastar's financial performance during the second quarter of 2010, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on August 16, 2010.

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (AMOUNTS EXPRESSED IN US DOLLARS) June 30 December 31 2010 2009 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 32,262,243 $ 20,115,677 Restricted cash 350,000 -- Accounts receivable 279,564 215,486 Inventories 704,502 616,073 Due from related party 51,000 -- Prepayments and other receivables 209,733 251,235 Total current assets 33,857,042 21,198,471 OTHER ASSETS Intangible assets, net 2,541,496 2,747,402
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