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Shengtai Pharmaceutical, Inc. Reports Record 2007 Annual Results
Date:9/28/2007

cose production plant. This allows the company to produce its own cornstarch, replacing other suppliers, reduces shipping costs, and resulting in lower manufacturing costs. The research and development team has been very active to improve production techniques, and to develop new technologies and higher value-added products such as sodium gluconate and Avermectins, which have higher profit margins.

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 planned to develop the land and build a new glucose production complex with an expected production capacity of 150,000 tons per year. The Company commenced construction in early July 2007 and expects construction to be completed in the first half of calendar year 2008. "Nevertheless, among our total 253,746 square meters of land, approximately only 60% is being utilized, leaving room for future expansion," said Mr. Zhang.

"The 2008 fiscal year presents tremendous opportunities for Shengtai Pharmaceutical, as we expect higher living standards, rising purchasing power, public awareness of quality health care products will continue to lead to higher consumption of pharmaceutical dextrose," said Mr. Zhang. "We believe that through manufacturing innovative products to meet market demand, we would be able to command higher profit margins and diversify our operating risks."

About Shengtai Pharmaceutical, Inc.

Shengtai Pharmaceutical, Inc. through its wholly-owned subsidiary Shengtai Holding, Inc. (SHI), a New Jersey corporation, and the holding company for Weifang Shengtai Pharmaceutical Co., Ltd., is a leading manufacturer and supplier of glucose products, which include pharmaceutical grade glucose used for medical purposes, and glucose and cornstarch products for the food and beverage industry and for industrial production in China. For more information about Shengtai Pharmaceutical, Inc. please vi
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SOURCE Shengtai Pharmaceutical, Inc.
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