BEIJING and CLAREMONT, Calif., Dec. 20 /Xinhua-PRNewswire-FirstCall/ -- Kiwa Bio-Tech Products Group Corporation (OTC Bulletin Board: KWBT), ("the Company" and "Kiwa") announced that it has signed Letter of Intent with Shijiazhuang Huaxing Animal Medicine Co., Ltd. ("Huaxing") on December 18, 2007. Both parties agreed that Kiwa will invest in Huaxing and transform it to a Sino-foreign joint-venture company ("new joint-venture") through expansion of Huaxing's capital. Kiwa will control a majority of the new joint-venture's equity. Both sides also agreed to start Due Diligence as soon as possible after the signing of the Letter of Intent.
Huaxing was founded in 1996. Huaxing is supported by animal husbandry and veterinary medicine agencies at both provincial and municipal levels. Huaxing has focused on building strong co-operative relationships with academic institutions such as the Agricultural University of Heibei and Hebei University of Science & Technology. Huaxing has developed: 12-series of animal medicines and disinfectants, over 200 products for flocks and herds, pigs, furry animals and pets. Huaxing holds 82 approval document numbers for veterinary drug products. Huaxing was inspected by the Ministry of Agriculture of the People's Republic of China ("Ministry of Agriculture") and was awarded the GMP qualification in January 2005. Huaxing's distribution channel covers all of China with exception of Taiwan and Tibet. Huaxing has become a modern high-tech veterinary drug enterprise recognized as a strong force in R&D, manufacturing and also distribution.
The CEO and concurrently Board Chairman of Kiwa, Mr. Wei Li stated, "Huaxing is a modern high-tech company with a profound heritage in the veterinary drug industry. It has strong Research and Development (R&D) capability, is equipped with Good Manufacturing Process (GMP) - qualified factory lines and integrated sales and distribution networks. The cooperation with Kiwa will not only bring Huaxing a new product with immense market potential, the AF-01 veterinary drug, but also successful experienced management and strong internal controls. The joint venture will help Kiwa making progress in the veterinary drug industry and accelerate the transformation process for research results of the Chinese Academy of Medical Sciences into commercialized products. "
About Kiwa Bio-Tech Products Group Corporation
The Company develops, manufactures, distributes and markets innovative, cost-effective, and environmentally safe bio-technological products for agricultural and natural resources and environmental conservation. The Company's products are designed to enhance the quality of human life by increasing the value, quality and productivity of crops and decreasing the negative environmental impact of chemicals and other wastes. For more information about the Company, please visit the Company's website at http://www.kiwabiotech.com .
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.
