Yayi Increases Output and Keeps Good Customer Service to Meet the Significant Rise in Consumer Demand for Safe Products

There has been a flight towards quality by consumers nationwide since the Chinese government's announcement on September 16, 2008 that 22 dairy enterprises had products containing melamine.

06/10/08 Yayi International Inc., as the leading manufacturer and distributor of goat milk powder in China, announced that it has been increasing its shifts and production output and has been keeping good customer services to meet consumer demand for reliable infant formula milk powder products.

There has been a flight towards quality by consumers nationwide since the Chinese government's announcement on September 16, 2008 that 22 dairy enterprises had products containing melamine. Since the government's initial announcement, more companies with failed products have been implicated. However, all of Yayi's products have passed all government inspections. At a meeting on September 21, 2008 with China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), Yayi submitted a written commitment to provide safe and quality products. As a result, Yayi's Mei Ke Gao Te branded products have been sold out in many areas.

Ms. Liu Li, Chief Executive Officer of Yayi, stated, "We are deeply sorrowful about the recent events and are committed to making sure that babies in China will keep having access to the reliable infant formula that they always deserve. Our production procedures comply with the strict quality assurance and quality control in-house standards, which are higher than the national standards of China. Meanwhile, our facilities also comply with strict pharmaceutical manufacturing standards, a higher level of quality control than what's required for consumer goods manufacturing facilities in China."

Yayi was one of the first infant formula producers to provide their customers with a toll-free hotline. Recently, the hotline of Yayi has experienced more than 500 calls a day with most of the callers asking for the retail locations of Mei Ke Gao Te branded products. And the customer service staff of Yayi has provided satisfactory responses to all the callers.

Mei Ke Gao Te branded products have maintained a strong presence in the second-tier and third-tier cities of China. In addition, Yayi has enhanced its marketing and sales team as the market demand continues to rise and has launched a nationwide marketing campaign, with television commercials running on Chinese Central Television Channels (CCTV) and provincial stations all across China, which allows Yayi to expand its market in the first tier cities. Despite the rising demand, Yayi has not increased its product price at this time.