China-Biotics Expands Product Supplied to Bright Dairy

SHANGHAI, March 17, 2011 /PRNewswire-Asia-FirstCall/ -- China-Biotics, Inc. (Nasdaq: CHBT) ("China-Biotics" or "the Company"), the leading developer, manufacturer and distributor of probiotics products in China, today announced that the Company has expanded its categories of strain formula supplied to Bright Dairy.

China-Biotics has recently added 3 new strain formulas that it supplies to Bright Dairy, one of the top 3 dairy enterprises in China. These new formulas will be used in Bright Dairy's highly anticipated premium yogurt product lines.

This expansion of supplied formula is a direct reflection of the Company's GMP-certified production techniques, technical safety and quality assurance, as Bright Dairy maintains one of the most stringent inspection processes in the industry.  

Mr. Jinan Song, CEO and Chairman of CHBT, commented, "We are very pleased to have expanded our products supplied to Bright Dairy, a top three dairy producer in China. Our undivided efforts on R&D and developing customized solutions for different dairy companies are starting to pay off. We remain focused on transitioning to our B2B business model and intend to expand our market share in China."

"Our current stock price does not reflect our long-term value and premium product quality in a large addressable market capable of sustaining rapid growth. Management will continue to focus on optimizing business operations and market expansion. We remain confident that, in the long run, our strategic position and ability to create value will be recognized by the US investment community."

About China-Biotics

China-Biotics, Inc. ("China-Biotics" or "the Company"), a leading manufacturer of biotechnology products and supplements, engages in the research, development, marketing and distribution of probiotics dietary supplements in China. Through its wholly owned subsidiaries, Shanghai Shining Biotechnology Co., Ltd. and Growing Bioengineering (Shanghai) Co. Ltd., the Company develops and produces a proprietary product portfolio. Currently, its retail products are sold over the counter, mainly through large distributors, to pharmacies and supermarkets in Beijing, Shanghai, and Jiangsu and Zhejiang provinces. The Company also sells bulk products to institutional customers such as dairy and animal feed producers as well as pharmaceutical companies. In February 2010, China-Biotics began its commercial production in China's largest probiotics production facility to meet the growing demand in China. For more information, please visit http://www.chn-biotics.com.

Safe Harbor Statement

The information in this release contains forward-looking statements which involve risks and uncertainties, including statements regarding the Company's capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as "may," "should," "will," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "forecast," "project," or "continue," the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results. Any or all of the Company's forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions, risks and uncertainties and other factors which could cause actual events or results to be materially different from those expressed or implied in the forward-looking statements. In evaluating these statements, readers should consider various factors, including the risks described in "Item 1A. Risk Factors" beginning on page 17 and elsewhere in the Company's 2010 Annual Report on Form 10-K. These factors may cause the Company's actual results to differ materially from any forward-looking statement. In addition, new factors emerge from time to time and it is not possible for the Company to predict all factors that may cause actual results to differ materially from those contained in any forward- looking statements. The Company disclaims any obligation to publicly update any forward-looking statements to reflect events or circumstances after the date of this document, except as required by applicable law.

SOURCE China-Biotics, Inc.