China Nutrifruit Completes Technological Upgrades to its Fruit Concentrate Production Lines

As part of technological upgrades, China Nutrifruit installed additional equipment and implemented advanced production techniques at the Company's facilities in Daqing and Mu Dan Jiang.

Jul 30 2010 --- China Nutrifruit Group Limited, a leading producer of premium specialty fruit based products in China ("PRC"), announced that on July 10, 2010 the Company successfully completed technological upgrades to its fruit concentrate production lines at its Mudanjiang and Daqing facilities.

As part of technological upgrades, China Nutrifruit installed additional equipment and implemented advanced production techniques at the Company's facilities in Daqing and Mu Dan Jiang. The Company also made systematic upgrades to its existing equipment, replacing inefficient machinery to improve performance and productivity. The Company provided equipment training to equipment operators to ensure operating efficiency. As a result of the technological upgrades, the Company expects to benefit from improved productivity and maximize its resource efficiency, favorably affecting gross margins. China Nutrifruit incurred total capital expenditures of $4.5 million for this project.

"I would like to thank all our staff members for their valuable assistance in completing our technological upgrades on schedule," said Mr. Changjun Yu, Chairman and CEO of China Nutrifruit. "We are pleased with the outcome and look forward to a healthy production season which will begin later this month. Such upgrade will help attract leading international customers as we seek to expand our customer base and penetrate the overseas market. We are always seeking opportunities to improve and maintain our profitability, and upgrading our fruit concentrate production lines will improve our raw material efficiency, productivity and profitability."