Nutrastar International, Inc. Announces Significant Expansion of Golden Grass Manufacturing Facilities

USA - English

• USA - English

HARBIN, China, Aug. 3 /PRNewswire-Asia/ -- Nutrastar International Inc. (OTC Bulletin Board: NUIN; "Nutrastar" or the "Company"), a leading nutraceutical company which produces and distributes Chinese Golden Grass ("Cordyceps Militaris"), today announced that in July 2010 it initiated a significant expansion of its Golden Grass manufacturing facilities, increasing production capacity by 30.9% to 72 tons annually.

In order to meet the raw material needs of their new beverage products and to expand sales of their small packages of Golden Grass, the company will invest RMB 10 million (US$ 1.46 million) to add 10 plants to its production line. Initially, RMB 4 million (US$ 0.58 million) will be invested in 2010 to launch 3 plants which will begin operating in the second half of 2010. The Company anticipates that the entire project will be completed in 2012. Annual production capacity of Golden Grass is expected to increase to 72 tons in 2010, up from 55 tons in 2009.

Ms. Lianyun Han, Founder and Chief Executive Officer of Nutrastar commented, "As a result of increasing consumer demand and new beverage product launching, we've had to significantly increase our production capabilities by expanding our current plants - increasing capacity by an astounding 31%. We are very pleased to have embarked on this expansion project and are excited to have the production capacity needed for our growth going forward."

About Nutrastar International, Inc.

Nutrastar International, Inc. is a China based nutraceutical company which produces and distributes Chinese Golden Grass ("Cordyceps Militaris"), organic and specialty food products in China. The Company's primary product is dry engineered Chinese Golden Grass, which is one of the most highly regarded herbal nutrients in Chinese culture. The Company believes it is the largest manufacturer of engineered Chinese Golden Grass in China, ranked by volume, according to China Market Monitoring Center (CMMC), accounting for 19% market share in China. The Company is headquartered in Harbin, capital of Heilongjiang province, with 302 employees, 21 in R&D, and 132 in sales and marketing. The products of Nutrastar are sold throughout China via a distribution network that covers more than 10 provinces. More information may be found at http://www.nutrastarintl.com or e-mail: [email protected] .

Safe Harbor Statement

This news release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, the Company does not assume a duty to update any forward-looking statements to reflect events or circumstances after the date hereof.

    For more information, please contact:

     Robert Tick
     CFO
     Nutrastar International, Inc.
     Tel:   +1-408-306-9881
     Email: [email protected]

     Howard Gostfrand
     American Capital Ventures
     Tel:   +1-305-918-7000
     Email: [email protected]

SOURCE Nutrastar International, Inc.