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Under the terms of the contract, Kiwa Bio-Tech owns 70% of the equity ofthe joint venture and Huaxing owns 30%. For more details about the contract,please refer to 8-K filed with the SEC.
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Mr. Ruijun Li, General Manager of Huaxing, noted, ''The combination of ourcompanies' marketing network, technology, manufacturing expertise is expectedto support the growth of the joint venture.''
Mr. Wei Li, Chairman and CEO of Kiwa, stated, ''we are pleased that Kiwawill now be able to aggressively pursue commercial development of AF-01 andveterinary pharmaceuticals as the third segment of its business. Now alongwith continued growth of bio-feed and rapid expansion of bio-fertilizers, Kiwawill be able to manufacture and market AF-01 Anti-viral Aerosol.''
ABOUT AF-01 ANTI-VIRAL AEROSOL
In May 2006 Kiwa acquired AF-01 Anti-viral Aerosol technology forveterinary medicine applications including the exclusive production right andother related rights to produce an anti-viral aerosol drug for use withanimals from Jinan Kelongboao Bio-Tech Co., Ltd. ("JKB"), which is affiliatedwith Chinese Academy of Medical Sciences. The AF-01 aerosol technology is abroad-spectrum anti-viral agent with potent inhibitory and/or viricidaleffects on a variety of RNA viruses found in animals and fowls such as birdflu. Kiwa's hope is to develop a commercialized product in the form of a sprayfor applying in fowl houses and other animal holding facilities to prevent andcure virus-caused diseases, for example, avian flu and foot-and-mouth disease.
ABOUT HUAXING
Huaxing was founded in 1996. Huaxing is supported by animal husbandry andveterinary medicine agencies at both provincial and municipal levels. Huaxinghas focused on building strong co-operative relationships with academicinstitutions such as the Agricultural University of Heibei and HebeiUniversity of Science & Technology. Huaxing has developed: 12-series of animalmedicines and disinfectants, over 200 products for flocks and herds, pigs,furry animals and pets. Huaxing holds 61 approval document numbers forveterinary drug products. Huaxing was inspected by the Ministry of Agricultureof the People's Republic of China (''Ministry of Agriculture'') and wasawarded the GMP qualification in January 2005. Huaxing's distribution channelcovers all of China with exception of Taiwan and Tibet. Huaxing has become amodern high-tech veterinary drug enterprise recognized as a strong force inR&D, manufacturing and also distribution.
ABOUT KIWA BIO-TECH PRODUCTS GROUP CORPORATION
The Company develops, manufactures, distributes and markets innovative,cost-effective, and environmentally safe bio-technological products foragricultural and natural resources and environmental conservation. TheCompany's products are designed to enhance the quality of human life byincreasing the value, quality and productivity of crops and decreasing thenegative environmental impact of chemicals and other wastes. For moreinformation about the Company, please review documents filed with the SEC(www.sec.gov) or visit the Company's website at http://www.kiwabiotech.com .
This press release contains information that constitutes forward-lookingstatements made pursuant to the safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995. Any such forward-looking statementsinvolve risk and uncertainties that could cause actual results to differmaterially from
