Emerald Dairy Inc. Secures Organic Milk Contract for 2,000 Store Pharmacy Chain in Guangdong

HARBIN, China, Jan. 25, 2011 -- Emerald Dairy, Inc. (OTC Bulletin Board: EMDY), a leading producer and distributor of infant and children's formula, today announced a supplier agreement with  a Guangdong-based pharmacy chain, Si Ming Yao Ye, for Emerald Dairy's recently-launched Xinganling® "Organic" infant formula.

Initial stocking orders of Xinganling® "Organic" shipped from Emerald Dairy's Guangdong distributors to 230 stores of the approximate 2,000 store pharmacy chain based in the province.    Xinganling® "Organic" will be positioned in the infant and baby product aisles of the chain and compete against international and local organic brands on the shelves of the chain.  Organic infant formulas are considered a premium product category in China and mostly marketed in tier one and two Chinese cities like Guangzhou.  Xinganling® "Organic" will be sold at a competitive price point of 218 Yuan ($33.00) per 900 gram can, and through normal consumption, will last a child approximately two weeks.  

In June 2009, Emerald Dairy started to develop an organic baby formula line for the high-end market. To meet the standards for an organic product, Emerald Dairy was required to maintain a herd of 527 organic-fed cows that were closely monitored by certification authorities to ensure they met the rigid organic farming standards. After 16 months of monitoring and subsequent product testing, Emerald Dairy's organic farming operation and production line were approved by China's Guangdong Zhongjiang Certification Co. (GZCC).   Emerald Dairy now uses the China Organic Product seal on its organic formula packaging and in associated marketing materials.  

"Achieving the organic product certification was a rigorous process and we are pleased our new production line in Hailun and our organic farming operations passed inspection," began Yongshan Yang, Chairman and CEO of Emerald Dairy.  "While the organic products market in China is still a niche segment, both locally-made and imported products are gaining market acceptance among Chinese consumers.  The China Organic Product certification and seal is a critical component of the advertising and branding strategy of our new product line and will help us realize gross margins on our organic formula of 60%.  We anticipate Xinganling® "Organic" Formula will account for a growing percentage of revenues in 2011 which will confirm Emerald's position as a high-quality supplier in the dairy industry."

About Emerald Dairy

Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a producer and distributor of infant and children's formula products in the People's Republic of China. The Company's products are sold under two brand names -- "Xinganling," designed for middle and high-end customers, and "Yi Bai," designed for low-end customers. Emerald Dairy's products are distributed throughout 20 provinces in mainland China and sold in over 6,500 retail points. For further information about Emerald Dairy Inc., please visit the Company's website at http://www.emeralddairy.com/

Forward-Looking Statements

This press release contains certain "forward-looking statements" that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its products in new markets and to offer products at competitive pricing, to attract and retain management, and to integrate and maintain technical information and management information systems, political and economic factors in the PRC, compliance requirement of laws and regulations of the PRC, the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.

SOURCE Emerald Dairy, Inc.

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