Yuhe International Inc. Completes Construction of Breeder Farm -- Total Number of Breeder Farms Reaches 28

WEIFANG, China, March 3 /PRNewswire-Asia-FirstCall/ -- Yuhe International Inc. (Nasdaq: YUII) ("Yuhe" or "the Company"), a leading supplier of day-old chickens raised for meat production, or broilers, in the People's Republic of China ("PRC"), today announced that the Company has completed construction of a new breeder farm, bringing its total number of breeder farms to 28, with 15 in operation today.

The new breeder farm covers an area of 20.6 acres (125 Mu) and has capacity for 130,000 parent breeders. Yuhe anticipates adding 100,000 sets of parent breeders to the breeder farm by the end of 2010.

The remaining 13 breeder farms not in operation are currently undergoing renovations and are expected to be fully functioning by the third quarter of 2010. As previously announced in January 2010, Yuhe purchased 13 breeder farms from Weifang Dajiang Corporation for RMB103.87 million (approximately $15.2 million).

In addition to the new breeder farm, the Company will introduce a new hatchery by the end of April 2010.

"We are delighted to announce the opening of our fifteenth breeder farm, marking an important step in our infrastructure expansion," said Mr. Zhentao Gao, Chairman & CEO of Yuhe. "The new breeder farm, along with the 13 additional ones expected to come on-line in the second half of 2010, increase our confidence in our ability to meet our 2010 production goal of 150 million day-old broilers. We believe Yuhe is well-positioned to benefit from the increasing market demand for day-old broilers."

About Yuhe International, Inc.

Founded in 1996, Yuhe is the second largest day-old broiler breeder in China. The Company's main operations involve breeding, as all broilers are sold within a day of hatching. With headquarters in Weifang, Shandong province, the Company has modern facilities and is led by an experienced team which includes experts in chicken breeding, disease prevention and animal husbandry science. Yuhe has two operational subsidiaries, Weifang Yuhe Poultry Co. Ltd. and Weifang Taihong Feed Co. Ltd. which largely supplies the Company's internal demand for chicken feed. Currently, 90% of the Company's sales of day-old broilers are in Shandong province through 28 local agents there. There are 10 other sales agents in adjacent provinces. The Company has imported state-of-the-art equipment from the United States, Germany and Japan and has passed ISO9001 certification, allowing it to adhere to international standards of operation. For more information on the Company and its products, please visit http://www.yuhepoultry.com .

Cautionary Statement

This press release contains forward-looking statements concerning the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. The Company undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

    For more information, please contact:

    Yuhe International, Inc.
     Mr. Vincent Hu, CFO
     Phone: +86-536-7300-667
     Email: [email protected]

     Mr. Jason Wang, Director of Investor Relations
     Phone: +1-765-409-1844
     Email: [email protected]
     Web:   http://www.yuhepoultry.com

    CCG Investor Relations Inc.
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: [email protected]

     Mr. Shaun Smolarz, Financial Writer
     Phone: +1-646-701-7444
     Email: [email protected]
     Web:   http://www.ccgirasia.com

SOURCE Yuhe International, Inc.