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Prior to entering into these Agreements, Kiwa Shandong has receivedapproval from the Ministry of Commerce of PRC for wholesaling other companies'fertilizer products; updated its business registration; and filed forexemption from VAT, under applicable Chinese laws and regulations. The Companyhas also entered into purchase contracts with Jiangsu Zhongdong Group forrelevant fertilizer products.
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Kiwa Shandong has recently adjusted its product mix in cooperation withJiangsu Zhongdong Fertilizer Group with a focus on developing new compoundbio-fertilizers. Kiwa Shandong is also continuing to develop new organicfertilizers to meet customer demand and is expected to introduce newbio-fertilizer products for sale in the Chinese fertilizer markets by the endof 2008. Starting in June 2008, Kiwa has been working closely with JiangsuZhongdong Group Co., Ltd. ("Zhongdong") to develop and market products. Thisannouncement reflects contracts signed as part of previously announced salesexpectations of US$10,000,000 in the next six months.
Mr. Wei Li, CEO and Chairman of the Company, stated, "We are pleased bythe number of new customers and very large contracts signed at the end of June2008. Delivery of these fertilizer products and recognition of revenues willbegin in and significantly raise revenues in the third quarter. While secondquarter revenues will be improved they will not reflect the significant rapidgrowth we expect in the second half of 2008."
Mr. Li added, "Importantly, these agreements will also promote developmentof Kiwa's bio-fertilizer distribution networks by building strategic allianceswith large traditional chemical fertilizer dealers. We expect thatdistributing other companies' fertilizer products will be a driver of Kiwa'ssales revenue. The Company is now applying itself to adjusting its product mix,developing compound fertilizers and other new fertilizer products throughcooperation with Jiangsu Zhongdong Group. It is expected that before the endof 2008, part of the Agreements will be executed with newly developedproducts."
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 any future results described by the forward-looking statements.Risk factors that could contribute to such differences include those mattersmore fully disclosed in the Company's reports filed with the Securities andExchange Commission. The forward-looking information provided hereinrepresents the Company's estimates as of the date of the press release, andsubsequent events and developments may cause the Company's estimates to change.The Com
