China-Biotics, Inc. Receives Approval to Begin Construction on Large-Scale Manufacturing Facility

Saturday, December 1, 2007 General News
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SHANGHAI, China, Nov. 30 China-Biotics,Inc. (OTC Bulletin Board: CHBT) ("China-Biotics", "the Company"), a leadingChinese firm specializing in the manufacture, research, development, marketingand distribution of probiotics products, today announced it has receivedgovernment approval to begin construction on a proposed 150-metric-ton-per-year manufacturing facility in order to meet expanding demand for probioticsin the bulk additive market.

"This marks a crucial milestone in the success of our bulk additivesstrategy, and will create the foundation for a successful expansion in thisgrowing market," said Mr. Jinan Song, Chairman and Chief Executive Officer ofChina-Biotics. "Customers are selecting China-Biotics because of ourindustry-leading shelf life versus the domestic alternatives and our lowerprice points when compared to the imports. When completed, our new plant willallow us to meet the rapidly increasing need."

With local government approval in hand, the Company plans to beginconstruction in early December on the new manufacturing facility in Shanghai,which will be able to produce 150 metric tons of probiotics per year.Construction of the new plant is projected to cost $18 million, which will befunded from existing cash and operating cash flow. The new facility willexpand production capacity from the Company's current level of nine metrictons per year.

When completed during the 2009 fiscal year, the Company believes the newplant will be the only large-scale probiotics plant in China that supplies thedomestic bulk additive market.

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 microbials 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 will 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 which will increase its production capacity manifolds 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 to capital forexpansion, and changes from anticipated levels of sales, future national orregional economic and competitive conditions, changes in relationships withcustomers, dependence on its flagship product profits and other factorsdetailed from time to time in the Company's filings with the United StatesSecurities and Exchange Commission and other regulatory authorities. TheCompany undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events orotherwise.For more information, please contact: CCG Elite Investor Relations Crocker Coulson, President Tel: +1-646-213-1915 (New York) Email:


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