China-Biotics, Inc. Comments on Market Rumors

SHANGHAI, Sept. 10 /PRNewswire-Asia-FirstCall/ -- China-Biotics, Inc. (Nasdaq: CHBT) ("China-Biotics" or "the Company"), a leading developer, manufacturer and distributor of probiotics products in China, today confirms that there has been an organized effort to distribute false rumors regarding the Company by emails, phone calls and websites. The Company suspects this is motivated by short selling interest in the Company's stock. These messages are false and damage China-Biotics' corporate image and its management's credibility. The Company has acted in a legal and ethical manner and it has not provided false disclosures of the Company's operations or financial data to investors or the United States securities authorities. China-Biotics is working with its legal counsel and the relevant authorities on further action against those responsible.

About China-Biotics

China-Biotics, Inc. ("China-Biotics," 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 its proprietary product portfolio. Currently, the retail products are sold OTC through large distributors to pharmacies and supermarkets in Shanghai, Jiangsu, and Zhejiang province. The company currently 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 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.

    For more information, please contact:

     Travis Cai
     Chief Financial Officer
     China-Biotics, Inc.
     Email: [email protected]

     Shiwei Yin/Kevin Theiss
     Grayling
     Phone: +1-646-284-9474
     Email: [email protected]
            [email protected]

SOURCE China-Biotics, Inc.