China Nutrifruit Completes Technological Upgrades to its Fruit Concentrate Production Lines

DAQING, China, July 29 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today announced that on July 10, 2010 the Company successfully completed technological upgrades to its fruit concentrate production lines at its Mudanjiang and Daqing facilities.

As part of technological upgrades, China Nutrifruit installed additional equipment and implemented advanced production techniques at the Company's facilities in Daqing and Mu Dan Jiang. The Company also made systematic upgrades to its existing equipment, replacing inefficient machinery to improve performance and productivity. The Company provided equipment training to equipment operators to ensure operating efficiency. As a result of the technological upgrades, the Company expects to benefit from improved productivity and maximize its resource efficiency, favorably affecting gross margins. China Nutrifruit incurred total capital expenditures of $4.5 million for this project.

"I would like to thank all our staff members for their valuable assistance in completing our technological upgrades on schedule," said Mr. Changjun Yu, Chairman and CEO of China Nutrifruit. "We are pleased with the outcome and look forward to a healthy production season which will begin later this month. Such upgrade will help attract leading international customers as we seek to expand our customer base and penetrate the overseas market. We are always seeking opportunities to improve and maintain our profitability, and upgrading our fruit concentrate production lines will improve our raw material efficiency, productivity and profitability."

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through 20 provinces in China. For more information, please visit http://www.chinanutrifruit.com .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning the Company's expectation regarding the expected performance benefits from technological upgrades to fruit concentrate production lines, ability to penetrate the overseas market, the Company's ability to develop and introduce new fruit and vegetable powder products and its impact on future revenue growth and profitability, and the Company's expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our filling, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

    Company Contact:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Phone: +852-9039-8111
     Email: [email protected]
     Web:   http://www.chinanutrifruit.com

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Phone: +1-310-954-1345 (LA office)
     Email: [email protected]
     Web:   http://www.ccgirasia.com

     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (NY office)
     Email: [email protected]

SOURCE China Nutrifruit Group Limited

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