American Dairy Launches New High-End Infant Formula Line 'AstroBaby'

BEIJING and LOS ANGELES, May 10 /PRNewswire-FirstCall/ -- American Dairy, Inc. (NYSE: ADY; "American Dairy" or the "Company"), one of the leading producers and distributors of premium infant formula, milk powder and soybean, rice and walnut products in China, today announced that the Company has released AstroBaby, a new high-end series of infant formula products, which was officially made available in stores beginning May 6, 2010.  

AstroBaby has been specially designed to meet the nutritional needs during the most crucial timeframe of a baby's development, with products tailored towards three different age groups.  Furthermore, the products take into account feeding practices in China, including the reality that many Chinese career women stop breast-feeding and begin formula feeding in 3-4 months, which corresponds to the standard maternity leave in China.

Mr. Leng You Bin, Chief Executive Officer of American Dairy, stated, "Breast milk is of course the best source of nutrition for babies, but when a mother is unable to consistently provide it, there needs to be a high-quality breast milk substitute. AstroBaby is designed to address this concern and ensures that children receive the specific nutrients needed to healthily progress through each of the three key development stages."

Mr. Leng continued, "I believe that the new national standards for the dairy industry announced this April, which specified the level of protein content required in infant formula products, marked a major milestone for the industry.  The industry practice has now evolved from producing low-value products to focusing on product innovation.  At American Dairy, we are always committed to providing our customers with infant formula of world-class standards.  And with the support from a special fund set aside by the Science and Technology Department of Heilongjiang Province to promote the development of high quality infant formula, we have successfully launched AstroBaby, a product developed in accordance with the 'gold standard' of breast milk.  The product formulation features a-lactalbumin provided by Denmark's Arla Foods, OPO fat-based ingredients by Malaysia's IOI Group, and galactose oligosaccharide (GOS) by Netherlands' Royal Friesland Campina.  Additionally, with most moms taking maternity leaves of 3-4 months, we are confident that AstroBaby is well-positioned to capture the demand from this underserved population."  

About American Dairy, Inc.

American Dairy, Inc. (NYSE: ADY) is one of the leading producers and distributors of premium infant formula, milk powder, and soybean, rice and walnut products in the People's Republic of China. American Dairy conducts operations in China through its wholly owned subsidiary, Feihe Dairy, and other subsidiaries. Founded in 1962, Feihe Dairy is headquartered in Beijing, China, and has processing and distribution facilities in Kedong, Qiqihaer, Baiquan, Gannan, Longjiang, Shanxi, and Langfang. Using proprietary processing techniques, American Dairy makes products that are specially formulated for particular ages, dietary needs and health concerns. American Dairy has over 200 company-owned milk collection stations, two dairy farms, seven production facilities with an aggregate milk powder production capacity of approximately 1,250 tons per day and an extensive distribution network that reaches over 95,000 retail outlets throughout China. For more information about American Dairy, please visit http://www.americandairyinc.com.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking information about the Company's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about the Company's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "targets," "could," "would," and similar expressions. Because these forward-looking statements are subject to a number of risks and uncertainties, the Company's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2009 and in other reports filed with the United States Securities and Exchange Commission and available at www.sec.gov. The Company assumes no obligation to update any such forward-looking statements.

SOURCE American Dairy, Inc.

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