China Nutrifruit Builds a New Production Facility in Heilongjiang Province

DAQING, China, June 22, 2011 /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 that the Company will complete construction of its new concentrate paste production facility in Zhaoyuan, Heilongjiang Province and begin trial production in July 2011.

In May 2011, China Nutrifruit commenced construction of its new multi-purpose concentrate paste production facility in Zhaoyuan city, Heilongjiang Province with an annual production capacity of 9,600 tons. The Company's new multi-purpose concentrate paste facility will cater to the raw material requirements of the Company's new fruit and vegetable powder production facility and will also be sold to its fruit concentrate juice customers. The Company plans to begin trial production with the production of concentrate tomato paste towards the end of July 2011. The total capital expenditure for the construction of this new concentrate paste production facility is estimated to be approximately RMB 90 million (or $13.9 million) and management expects to finance the project through cash on hand and cash flow generated from operations.

"The construction of our new multi-purpose concentrate paste production facility is making significant progress and is on track to begin trial production at the end of July 2011. This facility will come online in time for our peak production season, contributing to our fiscal year 2012 operations," commented Mr. Changjun Yu, Chairman and CEO of China Nutrifruit. "We have conducted extensive research on our new concentrate tomato paste product and expect to begin trial production following a ramp up of production capacity to include other multi-purpose concentrate paste products. Our concentrate paste products will be sold directly to our customers in the food processing industry and can also be used as raw material for our new fruit and vegetable powder production line. Therefore, we anticipate our fruit and vegetable powder production season to be extended beyond the harvest period, positively impacting our future revenue growth and profitability. With the introduction of our new products, including concentrate paste and fruit and vegetable powder, we expect to deliver strong financial and operational performance in fiscal year 2012."

About China Nutrifruit Group Limited

Through its subsidiaries Daqing Longheda Food Company Limited and Daqing Senyang Fruit and Vegetable Food Technology 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, seabuckthorn, blackcurrant and raspberry. Its processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 18 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 our new products, our new facility and capacity expansion, and its expected impact on the Company's business and financial performance, our expectations regarding the market for our existing products and new products, our 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 Annual Report on Form 10-K for the year ended March 31, 2011, 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.