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"We are pleased to begin this partnership with Relax Xinqiao, which ishighly regarded in Shanghai and Jiangsu Provinces," said Mr. Jinan Song,China-Biotics' Chairman and Chief Executive Officer. "This marks the firsttime Shining Probiotics will be used as a baking ingredient and demonstratesthe expanding reach and growing acceptance of our high-quality probiotics. Webelieve our expertise in the application of probiotics as food additives willcontinue to attract more business opportunities in this rapidly growingmarket."
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Relax Xinqiao will use a combination of two Shining Probiotics products,Lactobacillus acidophilus and Bifidobacterium bifidum ("LA-BB"), in its newlyintroduced bakery products, such as probiotics mousse cake and probiotics iceddessert. LA-BB helps to further break down cream and sugar into vitamins,peptides and amino acids. LA-BB is also helpful in maintaining a balancedgastrointestinal tract.
In addition to its dietary supplement products such as Shining Essence,China-Biotics supplies Shining Probiotics as additives to food manufacturersfor use in other new products, including in ice cream. The demand forprobiotics in China is expected to increase dramatically as consumers becomemore health-conscious and the Chinese government promotes public nutritionprograms on a nationwide basis.
About Shanghai Relax Xinqiao Food Co., Ltd.
As a well-known local baked goods manufacturer and distributor, ShanghaiRelax Xinqiao Food Co., Ltd. has a production base of more than 20,000 squaremeters. It has a large product portfolio that includes bread, mousse andpastries. With nearly 100 retail stores in Shanghai and Jiangsu Province,Relax Xinqiao is well-recognized in the great Shanghai area. For moreinformation, please visit http://www.xinqiaofood.com/index.asp .
About China-Biotics, Inc.
Headquartered in Shanghai, China-Biotics, Inc. ("China-Biotics", "theCompany") was founded in 1999 and is one of China's largest suppliers ofprobiotics. Probiotics are beneficial live bacteria used as dietarysupplements and food additives to improve intestinal health and digestion.The Company's product portfolio contains live microbes made with proprietarytechnology. Currently, these products are sold over-the-counter under the"Shining" brand through large distributors to more than 1,000 pharmacies and100 supermarkets in Shanghai, Jiangsu and Zhejiang. Shining is one of themost recognized brands in Shanghai. China-Biotics plans to expand its retailsales to other major cities in China and expects to launch 300 Shining brandlogistic centers in these cities during the next two years. The Company'sflagship product, "Shining Essence," has been a profit driver since its launchin April 2001. There is a significant demand for probiotics for use in thebulk additive market, which is currently met by imports. China-Biotics isbuilding a new plant that will increase its production capacity manyfold tocapture this market.
Safe Harbor Statement Under the Private Securities Litigation Reform Actof 1995: Any statements set forth above that are not historical facts areforward-looking statements that involve risks and uncertainties that couldcause actual results to differ materially from those in the forward-lookingstatements. Such factors include, but are not limited to, the Company'sability to market existing and new products, ability to access capital forexpansion, changes
