Emerald Dairy Consummates Private Placement of $1.75 Million of Promissory Notes and 536,809 Warrants

Jan 04, 2010, 08:00 ET from Emerald Dairy, Inc.

RESTON, Va., Jan. 4 /PRNewswire-Asia-FirstCall/ -- Emerald Dairy, Inc. ("Emerald Dairy" or the "Company") (OTC Bulletin Board: EMDY), a leading producer and distributor of infant and children's formula, milk powder and soybean products in China, today announced it has closed a private offering in which it sold to "accredited" investors promissory notes in an aggregate principal amount of $1,750,000, with an interest rate of ten (10%) percent per annum (the "Notes"), maturing in one year, and three-year warrants to purchase 536,809 shares of the Company's common stock, at an exercise prices of $1.63 per share.

The Notes are secured by a pledge of 5,883,329 shares of the Company's common stock beneficially owned by Yang Yong Shan, Emerald Dairy's CEO.

The net proceeds from the offering will be used primarily to complete the installation and equipping of the first milk powder production line in the Company's newly-constructed facility in Hailun City, China. The Company expects production at the new facility to commence in the first quarter of 2010.

The Company filed a Form 8K to disclose the additional terms of the private placement on December 31, 2009.

Shu Kaneko, CFO of Emerald Dairy, stated, "The first production line of our new production facility is nearing completion and is expected to expand our production capacity from 9,000 tons to approximately 19,000 tons per annum, substantially increasing our revenues. The new facility will enable us to keep pace with the growing demand for our products, which drove our net income upward by 220% in the past three years."

Emerald Dairy plans to apply for listing on the NYSE Amex Equities as the Company believes revenue and profit growth following the completion of the first production line in its new facility will enable it to meet current listing requirements.

China's Rapidly Growing Dairy Industry

The dairy market today in China is over $13 billion and is expected to grow at a rate of 15% per year for the foreseeable future. The Chinese government has recognized that the dairy industry is not only crucial to reforming the structure of agriculture in the country and increasing the income of farmers, it is also essential to improve the diet, health, and overall welfare of the Chinese people. In recent years, milk and dairy products have gradually become an accepted daily necessity in the life of Chinese people. As a result, the dairy market is one of the fasted growing markets in China.

About Emerald Dairy, Inc.:

Through its wholly-owned operating subsidiaries, Emerald Dairy Inc. is a producer and distributor of infant and children's formula, milk powder and soybean products in the People's Republic of China. The Company's products are sold under two brand names -- "Xing An Ling," designed for high-end customers, and "Yi Bai," designed for middle and low-end customers. They are distributed throughout 20 provinces in mainland China and sold in over 6,000 retail outlets.

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from any forward- looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.

    For more information, please contact:

     Stanley Wunderlich
     Consulting for Strategic Growth 1
     Tel:   +1-800-625-2236 x7770
     E-Fax: +1-646-205-7771
     Email: swunderlich@cfsg1.com

SOURCE Emerald Dairy, Inc.