Synutra Provides Update on Infant Formula Allegations

Thursday, August 12, 2010 Child Health News
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QINGDAO, China and ROCKVILLE, Md., Aug. 11 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, "Since the initialspeculation in reports that our products were responsible for prematuredevelopment and precocity in children, there has been a tremendous increase incommentary in the press relating to this incident such as the People's Dailyand Bloomberg. The media is increasingly relaying a more balanced take on thereality that there is no scientific evidence supporting the allegation thatour products are responsible for these claims."

"We are seeing many industry experts also speak out about the lack ofscientific evidence between infant formula and these claims. The recent pressconference by the Ministry of Health (MOH) communicated that a definitivecause for premature development in the infant cases submitted could not bedetermined and that there are many possible contributing factors, which maycause premature development. These points are both positive for us and arein-line with our belief that Synutra products are safe and in no way relatedto these claims."

"Furthermore, we are in the process of taking legal action and areevaluating the various timing, jurisdiction and channels through which we mayprotect our brand. We intend to prosecute the parties responsible for theseaccusations to the furthest extent possible. While we offer our sympathy toany families experiencing health challenges, we firmly believe that ourproducts are not involved in the claims recently made, and we feel this mediaevent will pass. We firmly believe they will illustrate our unwaveringproduct quality and commitment to consumer safety."

The Company will continue to proactively provide updates on the situation.To ensure access to the most updated information, the Company has created a"Synutra in the News" tab on the Company's IR website( ), which contains links to the Company's most recentpublic statements and media articles.

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. Theforward-looking statements are made as of the date of this press release.Synutra International Inc. undertakes no obligation to update anyforward-looking statements to reflect events or circumstances after the dateon which the statements are made or to reflect the occurrence of unanticipatedevents.

SOURCE Synutra International, Inc.

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