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Shengtai Pharmaceutical, Inc. Reports First Quarter Results of Fiscal Year 2008
Date:11/15/2007

to decrease purchases of cornstarch from its outside supplier, Shouguang Shengtai, since January 2007, when its new 240,000 ton annual capacity plant started production. The Company was fully self- sufficient in so far as it relates to its cornstarch supply beginning in the past quarter. This has allowed the Company to reduce its raw material shipping costs, and has resulted in lower manufacturing costs. During calendar year 2007, approximately 50% of the new cornstarch production plant's output will be used as raw materials for the Company's own glucose production, and the rest of output will be sold to customers in the food and beverage, pharmaceutical and industrial industries.

After acquiring the rights to use 85,880 square meters of new land in Changle Economic and Technology Development Zone in April 2007, Shengtai Pharmaceutical set up to develop the land and build a new glucose production complex with an expected production capacity of 150,000 tons per year. The manufacturing plant's machines will be equipped with state-of-the-art technology, and the quality of glucose produced will, the Company believes, be able to match that produced in the rest of the world. The Company commenced construction in early July 2007 and expects construction to be completed in the first half of calendar year 2008.

The Company's existing glucose production facility which has annual capacity of 60,000 tons has been operating at full capacity and has been insufficient to meet the strong market demand. Therefore, the Company began a capacity upgrade of its existing facility to more than 90,000 tons from October 2006 which is expected to be completed in May 2008.

"The research and development team has been very active in improving our production techniques, and in developing new technologies and higher value- added products such as sodium gluconate and Avermectins, which have higher profit margins. We anticipate that from this, along with our increasing capacity u
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SOURCE Shengtai Pharmaceutical, Inc.
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