Qufu, China - June 7, 2006 (MARKET WIRE) - Sunwin International Neutraceuticals, Inc. (OTCBB: SUWN), an industry leader in the production and distribution of Chinese herbs, veterinary medicines and low calorie natural sweetener (Stevia) in China, has entered an agreement with Shangdong Yulong Group Company, Limited ("Yulong") to acquire 98.5% ownership of Qufu Pharmaceuticals Factory ("Qufu Pharmaceuticals").
Qufu Pharmaceuticals Factory, founded in 1994, a wholly owned subsidiary of Yulong, manufactures and distributes Class I Chinese herb-based medicines in China. The factory's key product is hydrochloric acid dimethyldiguanide, which was approved as a treatment for Type II diabetes by the Ministry of Health Care of China in 1997 and has been widely used in China since then.
Qufu Pharmaceuticals Factory generated approximately $6 million in annual sales in the past. Currently, Qufu has approximately $500,000 in net tangible assets including equipment, land and buildings.The final terms of the acquisition will be determined upon the audit of Qufu Pharmaceuticals Factory. The purchase price should not be more than the total net tangible assets of Qufu Pharmaceuticals Factory. Sunwin will issue the restricted shares of its common stock to acquire Qufu Pharmaceuticals.
Sunwin expects that the acquisition will enable Sunwin to vertically integrate its operations from manufacturing of raw material of Chinese herb medicine to manufacture and distribution of finished Chinese-herb medicines, therefore substantially increasing profit margins.
Laiwang Zhang, Chairman and President of Sunwin International Neutraceuticals, stated, "This transaction should serve to improve product lines and the profitability of our company. The acquisition should enhance the vertical integration of our Chinese herbal medicine division.We believe the acquisition should accelerate growth of our revenues and earnings for years to come."
About Sunwin International Neutraceuticals, Inc.
Sunwin International Neutraceuticals, Inc. (OTCBB: SUWN) is engaged in the areas of essential traditional Chinese medicine, 100% organic herbal medicine, neutraceutical products, low-calorie natural sweetener (Stevia), and veterinary medicines and feeds prepared from 100% organic herbal ingredients. As an industry leader in agricultural processing, Sunwin has built an integrated global firm with the sourcing and production capabilities to meet the needs of consumers throughout the world. Sunwin also makes such value-added products as specialty veterinary food ingredients and specialty feed ingredients. The Sunwin family works closely with consumer to provide a quality and a hybrid mix of agricultural products and services that meet growing demand. In 2002, Sunwin was recognized as one of the first 2,000 state-level companies that China authorized as the most important innovative high-tech pioneer businesses by the Chinese central government.In 2002, Sunwin was awarded as one of 2002 state-level biological product manufacturers in China. In 2003, Sunwin ranked as one of the top 50 companies of China Animal Related Health Care Product Pharmaceutical Industry. In 2003, Sunwin received award of Shandong Top-Ten Innovative, High-Tech Businesses by the Province Government of Shandong. For more info about Sunwin, please visit http://www.sunwin.biz
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