China Nutrifruit Provides Updates on Fruit and Vegetable Powder Product Development

The Company's R&D team has developed a wide variety of over twenty powder products, including pumpkin, potato, crab apple, celery, carrot, onion, cucumber, green beans and cilantro.

Jul 21 2010 --- China Nutrifruit Group Limited, a leading producer of premium specialty fruit based products in China ("PRC"), announced updates on the Company's new fruit and vegetable powder products under development.

China Nutrifruit's Research and Development ("R&D") team is engaged in developing new fruit and vegetable powder products that can be used as ingredients in a variety of products, including baby food, ready-to-drink mixes, instant soup mixes, snack foods, health-care, cosmetics and other confectionery items. The Company's R&D team has developed a wide variety of over twenty powder products, including pumpkin, potato, crab apple, celery, carrot, onion, cucumber, green beans and cilantro. China Nutrifruit expects to begin production of tomato and carrot powder in September 2010. The timing and introduction of the other popular fruit and vegetable powder products will be based on the results of the Company's ongoing market research. The Company has deployed a designated marketing team, who will interact with distributors, offer product samples and participate in trade shows to promote the newly developed fruit and vegetable powder products. Thus far, the Company's management team has received positive feedback from distributors and manufacturers who view China Nutrifruit as a valuable and reliable supplier.

The fruit and vegetable powder industry is in its infancy with approximately 400 fruit and vegetable powder manufacturers in China, primarily targeting overseas markets. Based on production output, China is the world's largest producer of fruits and vegetables, with approximate annual production output of 570 million tons. According to Beijing Leadership Management Consulting Co. Ltd., China's fruit and vegetables production is expected to reach 700 million tons in 2010, representing a growth rate of 22.8% year over year. The Company is currently constructing a 40,000 square-meter new fruit and vegetable powder production facility in Daqing with designed annual production capacity of 10,000 tons which will begin operation in September 2010.

"Our R&D team has demonstrated immense dedication in developing a range of products for our new fruit and vegetable powder product line," said Mr. Changjun Yu, Chairman and CEO of China Nutrifruit. "A growing number of consumers are embracing healthy lifestyles and nutritious diets. This favorably influences demand for fruit and vegetable powders used as substitutes for refined sugars and artificial flavors in the production of food and confectionary products, enhancing their nutritional value, color, and taste. Based on Beijing Leadership Management Consulting Co. Ltd, in 2009, annual demand for fruit and vegetable powder recorded approximately 150,000 tons, while supply was merely about 100,000 tons. With demand likely to exceed supply, China Nutrifruit is well positioned to expand its product portfolio, leverage its production expertise and capitalize on market opportunities. We look forward to beginning production of our fruit and vegetable powder products in September 2010 and believe this segment will be a significant driver of our future revenue growth and profitability."