Synutra Reiterates Commitment to Product Quality

Tuesday, August 10, 2010 General News
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QINGDAO, China and ROCKVILLE, Md., Aug. 9 SynutraInternational, Inc. (Nasdaq: SYUT), a leading infant formula company in Chinaand a producer, marketer and seller of nutritional products for infants,children and adults, today released the following public comment in responseto a media report in China which linked hormone levels in the Company's milkpowder with alleged premature development and sexual precocity.

Mr. Liang Zhang, Chairman and CEO of Synutra stated, "Certain parties inthe media recently attempted to create a crisis by linking our products topremature development and precocity in children. These claims are highlyirresponsible and based on speculation instead of scientific evidence. Certainmembers of the media promulgated these claims despite the fact that manydifferent external factors have been linked to premature development inchildren, and, additionally, China's CDC and several leading scientistsalready stated publicly that there was no evidence linking our products tosuch symptoms.

"As a well-known and trusted provider of infant formula in China, we arecompletely confident that our products are safe and our quality levels areindustry-leading. We do not add hormones to our products and we have investedheavily in research, quality control, formulations and ingredients. We haveparticipated in exhaustive quality testing at all required government levels,including with the relevant state agencies and industry groups. Additionally,our upstream ingredient suppliers are also reliable and trusted around theworld.

"Recently, we have worked closely with state authorities, including theChinese Dairy Association and the Office of Food Safety, to test productsamples to prove that these claims are false. We expect that the results ofthese tests should be made public soon, and we hope that they are publishedexpeditiously. We firmly believe they will illustrate our unwavering productquality and commitment to consumer safety.

"We are in the process of taking legal action to protect our brand, and weintend to prosecute the parties responsible for these accusations to thefurthest extent possible."

About Synutra International, Inc.

Synutra International Inc. (Nasdaq: SYUT) is a leading infant formulacompany in China. It principally produces, markets and sells its productsunder the "Shengyuan" or "Synutra" name, together with other complementarybrands. It focuses on selling premium infant formula products, which aresupplemented by more affordable infant formulas targeting the mass market aswell as other nutritional products and ingredients. It sells its productsthrough an extensive nationwide sales and distribution network covering 30provinces and provincial-level municipalities in China. As of June 30, 2010,this network comprised over 560 independent distributors and over 1,000independent sub-distributors who sell Synutra products in over 74,000 retailoutlets.

Forward-looking Statements

This press release contains "forward-looking statements" within themeaning of the Private Securities Litigation Reform Act of 1995 that are basedon our current expectations, assumptions, estimates and projections aboutSynutra International Inc. and its industry. All statements other thanstatements of historical fact in this release are forward-looking statements.In some cases, these forward-looking statements can be identified by words orphrases such as "anticipate," "believe," "continue," "estimate," "expect,""intend," "is/are likely to," "may," "plan," "should," "will," "aim,""potential," "continue," or other similar expressions. The forward-lookingstatements included in this press release relate to, among others, Synutra'sgoals and strategies; its future business development, financial condition andresults of operations; the expected growth of the nutritional products andinfant formula markets in China; market acceptance of the Company's products;adverse effects associated with the melamine contamination incident; Synutra'sexpectations regarding demand for its products; Synutra's ability to stayabreast of market trends and technological advances; competition in the infantformula industry in China; PRC governmental policies and regulations relatingto the nutritional products and infant formula industries, and generaleconomic and business conditions in China. These forward-looking statementsinvolve various risks and uncertainties. Although Synutra believes that theexpectations expressed in these forward-looking statements are reasonable,these expectations may turn out to be incorrect. Synutra's actual resultscould be materially different from the expectations. Important risks andfactors that could cause actual results to be materially different fromexpectations are generally set forth in the "Item 1. Business," "Item 1A. RiskFactors," "Item 7. Management's Discussion and Analysis of Financial Conditionand Results of Operations," and other sections in Synutra's Form 10-K filedwith the Securities and Exchange Commission on June 9, 2010. The forward-looking statements are made as of the date of this press release. SynutraInternational Inc. undertakes no obligation to update any forward-lookingstatements to reflect events or circumstances after the date on which thestatements are made or to reflect the occurrence of unanticipated events.

SOURCE Synutra International, Inc.

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