Nutrastar Signs First Distributor for New Cordyceps Powder Solution Product, Expands Reach to Central China

HARBIN, China, July 31, 2014 /PRNewswire/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), health beverages and organic and specialty foods, today announced the signing of its first distributor for its new Cordyceps powder solution product and its expansion to Hubei Province located in the eastern part of Central China.

The contract with the new distributor, Hubei Quandu Aiwan Health Industry Co., Ltd. ("Aiwan") was signed on July 16, 2014 and is for an initial period of one year (subject to additional extension or renewal thereafter) with a commitment of up to RMB 20 million per year (US $3.2 million) for the Cordyceps' powder solution product only. Introduced by Beijing MLTH Fortune Investment Management Co., Ltd. (MLTH), the strategic investor that participated in the Company's June 2014 private transaction, Aiwan distributes healthcare related products throughout the region.

Through the new distributor, Nutrastar's premium Cordyceps powder solution product will be distributed to targeted specialty nutraceuticals stores and supermarkets. The soluble Cordyceps product will come in a 140g per box size and will be used as a nutritional supplement for health-conscious consumers "on-the-go".

Hubei, a province with a 2010 population of approximately 57 million, is known to support industries that include automobiles, machinery, power generation, and high-tech commodities. Wuhan, the provincial capital and largest city with a 2010 population of approximately 9.8 million, is a major transportation thoroughfare and the political, cultural, and economic hub of Central China.

Ms. Lianyun Han, Nutrastar's Chief Executive Officer, commented, "The signing of this distributor is encouraging and exciting for the Company and for our shareholders for many reasons. First, it marks the completion and launch of our new exciting consumer product – our Cordyceps powder solution – which we hope will be the initial product to open Nutrastar up to consumers internationally including those located in the U.S. Second, it marks the Company's first entry into Central China, a regional market we feel has great growth potential for our entire product portfolio. And third, it solidifies the reasons why we brought on MLTH as a strategic investor. MLTH's introduction to Aiwan was pivotal in securing the initial distribution contract for our new soluble Cordyceps product, and for facilitating our entry into this large growing market."

Mr. Baiqing Su, General Partner of MLTH, stated, "As stated in the press release last month, Nutrastar's leading market position in the production and sale of commercial Cordyceps throughout China and continued ability to grow market share, while introducing new and exciting complementary products, is impressive. We were pleased to make the introduction to Aiwan, and are committed to doing all that we can to help Nutrastar continue to grow its market share moving forward."

About Nutrastar International Inc.

Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company is headquartered in Harbin, capital of Heilongjiang Province, with 330 employees, including 21 in R&D, and 149 in sales and marketing. The products of Nutrastar are sold throughout China via a sales and distribution network that covers more than 10 provinces. More information may be found at http://www.nutrastarintl.com/ or e-mail: [email protected]

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Safe Harbor Statement

This news release contains "forward-looking statements" relating to the business of Nutrastar International Inc., its subsidiaries and other affiliate companies.  All statements, other than statements of historical fact included herein are "forward-looking statements" including 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 forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions.  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 forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors.  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:

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

SOURCE Nutrastar International Inc.