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China-Biotics, Inc. Sees No Impact on Its Business From Dairy Products Safety Concerns
Date:9/25/2008

SHANGHAI, China, Sept. 25 /Xinhua-PRNewswire-FirstCall/ -- China-Biotics, Inc. (OTC Bulletin Board: CHBT) ("China-Biotics," "the Company"), a leading Chinese firm specializing in the manufacture, research, development, marketing and distribution of probiotics products, today provided an update on the impact on the Company's business of the dairy products contamination concerns in China.

"We do not foresee any significant impact to our business, as our current sales to the dairy industry are minimal," said Mr. Jinan Song, China-Biotics' Chairman and Chief Executive Officer. "We expect that by 2009, when our new plant is operational, the dairy product contamination issue will have been resolved. The construction of our new manufacturing facility remains on schedule, and we are in discussions with a number of suppliers of bakery, dairy and pharmaceutical products in preparation for the plant's initial operation at the end of this calendar year."

Milk samples from several Chinese dairy companies, including the three largest producers, have been found to be tainted with melamine, an industrial chemical. In a September 17 executive meeting of China's State Council, officiated by Premier Wen Jiabao, the Council elected to take steps to conduct comprehensive testing of dairy products and carry out other industry reforms.

"We believe that the strengthening of product quality and testing standards in the dairy industry will be a positive development for domestic suppliers that operate to high international standards. China-Biotics is engaged in discussions and qualification processes with several large global suppliers of infant formula and dairy products to the China market, and we believe we are well positioned to benefit as more stringent requirements are implemented in the industry," Mr. Song concluded.

About China-Biotics, Inc.

China-Biotics, Inc. ("China-Biotics," "the Company"), a leading manufacturer of biotechnology products
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