China-Biotics Expands Distribution Network Into Pan-Beijing Area

SHANGHAI, Dec. 17, 2010 /PRNewswire-Asia-FirstCall/ -- China-Biotics, Inc. ("China-Biotics" or "the Company"), (Nasdaq: CHBT) the leading developer, manufacturer and distributor of probiotics products in China, today announced that it has expanded its distribution network into the Pan-Beijing area with the selection of four new distributors to sell the Company's retail products.

These local distributors will sell the Company's retail probiotics products through established distribution networks including malls, supermarkets and functional food stores adding approximately 30 new points of sale. These agreements represent the Company's first market entry into the pan-Beijing area.

Mr. Jinan Song, Chairman and CEO of China-Biotics, commented, "We are very excited about our new alliances with these distributors as they enable us to enter the highly desirable pan-Beijing area, which together with the Hebei and Shandong provinces and the municipalities of Beijing and Tianjin, command among the highest disposable income levels in China with rising nutritional food consumption. Although the signing of these distribution agreements signals the beginning of our expansion into this new geographic region, we have already started conducting studies on market potential for other regions within China."

"Rapidly growing sales of probiotics cultured yogurt products by dairy companies throughout China are paving the way for increased awareness of the benefit of probiotics. We are confident that our retail products will be well received by the health conscious middleclass consumers in this region. Our goal remains consistent: building a broader retail and bulk customer base with regular consumption and recurring revenues to maximize our long-term shareholder value," Mr. Song concluded.

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 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.