China Nutrifruit Provides Updates on Fruit and Vegetable Powder Product Development

DAQING, China, July 20 /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 updates on the Company's new fruit and vegetable powder products under development.

China Nutrifruit's Research and Development ("R&D") team is engaged in developing new fruit and vegetable powder products that can be used as ingredients in a variety of products, including baby food, ready-to-drink mixes, instant soup mixes, snack foods, health-care, cosmetics and other confectionery items. The Company's R&D team has developed a wide variety of over twenty powder products, including pumpkin, potato, crab apple, celery, carrot, onion, cucumber, green beans and cilantro. China Nutrifruit expects to begin production of tomato and carrot powder in September 2010. The timing and introduction of the other popular fruit and vegetable powder products will be based on the results of the Company's ongoing market research. The Company has deployed a designated marketing team, who will interact with distributors, offer product samples and participate in trade shows to promote the newly developed fruit and vegetable powder products. Thus far, the Company's management team has received positive feedback from distributors and manufacturers who view China Nutrifruit as a valuable and reliable supplier.

The fruit and vegetable powder industry is in its infancy with approximately 400 fruit and vegetable powder manufacturers in China, primarily targeting overseas markets. Based on production output, China is the world's largest producer of fruits and vegetables, with approximate annual production output of 570 million tons. According to Beijing Leadership Management Consulting Co. Ltd., China's fruit and vegetables production is expected to reach 700 million tons in 2010, representing a growth rate of 22.8% year over year. The Company is currently constructing a 40,000 square-meter new fruit and vegetable powder production facility in Daqing with designed annual production capacity of 10,000 tons which will begin operation in September 2010.

"Our R&D team has demonstrated immense dedication in developing a range of products for our new fruit and vegetable powder product line," said Mr. Changjun Yu, Chairman and CEO of China Nutrifruit. "A growing number of consumers are embracing healthy lifestyles and nutritious diets. This favorably influences demand for fruit and vegetable powders used as substitutes for refined sugars and artificial flavors in the production of food and confectionary products, enhancing their nutritional value, color, and taste. Based on Beijing Leadership Management Consulting Co. Ltd, in 2009, annual demand for fruit and vegetable powder recorded approximately 150,000 tons, while supply was merely about 100,000 tons. With demand likely to exceed supply, China Nutrifruit is well positioned to expand its product portfolio, leverage its production expertise and capitalize on market opportunities. We look forward to beginning production of our fruit and vegetable powder products in September 2010 and believe this segment will be a significant driver of our future revenue growth 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 market demand for fruit and vegetable powder products, the expected operation date of the new production lines, 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
     Tel:   +852-9039-8111
     Email: [email protected]
     Web:   http://www.chinanutrifruit.com

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

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

SOURCE China Nutrifruit Group Limited