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Shengtai Pharmaceutical, Inc. Comments On Its Operations
Date:2/26/2009

WEIFANG, Shandong, China, Feb. 26 /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 updated investors regarding the current status of its sales and production.

The Company proactively lowered its cornstarch production during the fiscal year 2009 second quarter due to the worldwide economic downturn and the decrease in demand caused by it. This action allowed Shengtai to focus its resources on growing its domestic core glucose business and minimize risks. Going forward, a higher production rate combined with stable corn prices will help reduce the unit cost of our cornstarch products. Domestic PRC sales of the Company's core glucose products remain positive.

Shengtai's long-term strategy to become a fully integrated supplier of pharmaceutical grade glucose with significant market share both domestically and internationally remains intact. The more glucose sold, the more of Shengtai's cornstarch will be consumed internally, and the Company will be less exposed to market conditions. The aim of Shengtai's vertically integrated strategy is to ultimately consume most of cornstarch produced internally. With the benefit of the Chinese government's heavy investment in the health care sector, we believe that the Company's goal to become fully integrated may come sooner than expected.

"We have developed a robust platform that is both specialized and profitable. We believe that health care reform in the PRC will positively impact our business," commented Mr. Qingtai Liu, CEO of Shengtai Pharmaceutical, Inc. "With the Chinese government opening up the vast rural market which was historically underdeveloped with low medical budgets and little medical consumption, we have a new revenue stream which will add to the growth our glu
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SOURCE Shengtai Pharmaceutical, Inc.
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