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China Yingxia International, Inc.'s chairwoman and CEO is in talks with investors in China
Date:3/6/2009

HARBIN, China, March 6 /PRNewswire-Asia-FirstCall/ -- China Yingxia International, Inc. (OTC Bulletin Board: CYXI) ("China Yingxia" or "the Company"), a leading provider in the nutraceutical industry engaged in the development, manufacture and distribution of nutritional food products, dietary supplements and personal care products in the People's Republic of China ("PRC"), today disclosed that its CEO and chairwoman, Ms. Yingxia Jiao, is in talks with the committee formed by certain investors in China.

The investors with whom Ms. Jiao is in negotiations had loaned funds to her prior to the Company acquiring Harbin Yingxia Industrial Group Co., Ltd., our wholly-owned subsidiary in China. Currently, there are disputes between these investors and Ms. Jiao concerning interest payments on these loans. These disputes adversely affected the normal operations of Harbin Yingxia.

Ms. Jiao believes that the slowdown of the general economy in China contributed to the difficulties in cash flows of her businesses which have further affected the interest payments to the initial Chinese investors. The disputes that arose since November 2008 have caused our subsidiary, Harbin Yingxia Industrial Group Co., Ltd., to shut down its operations temporally on in late February 2009. As a result, the financial performance of the Company in the forth quarter of 2008 and the first quarter of 2009 have been and will continue to be adversely affected. The Company therefore withdraws its guidance of sales and net income for 2008 as well as other forward-looking statements previously set forth in SEC filings, press releases and other public discussions.

The Company expects to give a more detailed account of these matters, as well as the full financial implications, in a separate press release or in its annual report on Form 10-K for the fiscal year ended December 31, 2008. These difficulties may cause the Company to be un
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SOURCE China Yingxia International, Inc.
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