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 and supplements, engages in the research, development, marketing and distribution of probiotics dietary supplements. Through its wholly owned subsidiary, Shanghai Shining Biotechnology Co., Ltd., the Company has operations in Shanghai. Its proprietary product portfolio contains live microbial nutritional supplements under the "Shining" brand. Currently, the products are sold OTC through large distributors to pharmacies and supermarkets in Shanghai, Jiangsu, and Zhejiang. China-Biotics plans to launch 300 Shining brand retail outlets in major cities in China. Currently, China-Biotics is strategically expanding its production capacity of probiotics to meet growing demand in the bulk additive market. For more information, please visit http://www.chn-biotics.com .
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995: Any statements set forth above that are not historical facts
are forward-looking statements that involve risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. Such factors include, but are not limited to,
the Company's ability to market existing and new products, ability to
access to capital for expansion, and changes from anticipated levels of
sales, future national or regional economic and competitive conditions,
changes in relationships with customers, dependence on its flagship product
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|SOURCE China-Biotics, Inc.|
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