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Recent Industry Developments Reaffirm Positive Glucose Industry Outlook
Date:3/12/2009

WEIFANG, Shandong, China, March 12 /PRNewswire-Asia-FirstCall/ -- Shengtai Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) ("Shengtai" or "the Company"), a leading manufacturer and distributor of high-quality, pharmaceutical grade glucose products in China, today announced that key customers have indicated a planned production expansion to accommodate an expected increase in the glucose-based transfusion market in China.

"The demand for medical transfusion products has been and should continue to be strong in China despite the current macro economic environment," said Mr. Qingtai Liu, CEO of Shengtai Pharmaceutical, Inc. "Industry developments are currently underway that we believe will positively impact our core business in addition to the momentum generated from the government healthcare reform initiatives. Specifically, a number of our key customers including Beijing Double-Crane Pharmaceutical Co., Ltd. and Kelun Pharmaceutical Co., Ltd., two of the largest domestic suppliers of medical transfusion solutions, have announced in recent months their plans to expand their production capacity in anticipation of capturing future growth opportunities. With the commencement of our new glucose production facility in October 2008, we have already effectively doubled our glucose production capability. We intend to leverage our expanded glucose production capability as well as our excellent customer relationships to further solidify our position as their supplier of choice for their basic pharmaceutical grade glucose."

According to statistics from the China Pharmaceutical Industry Association, demand for traditional glucose-based transfusion solutions accounted for about 2.75 billion bottles, or about 45% of the entire transfusion solutions market in China during 2007. Based on current trends, we believe demand for glucose- based transfusion solutions will increase substantially over the next two years. As manu
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SOURCE Shengtai Pharmaceutical, Inc.
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