SOURCE: Yasheng Group

September 20, 2005 09:30 ET

YaSheng Group Announces Plan to Build a Manufacturing Plant for Their New Human Lysozyme C Protein

REDWOOD CITY, CA -- (MARKET WIRE) -- September 20, 2005 -- The YaSheng Group (OTC: YHGG) achieved a breakthrough in Human Lysozyme DNA Technology as reported last month by the company's Academy of Science Research and Development Center. The YaSheng Group plans to break ground within six months on a 41,000 sq ft manufacturing facility in Beijing, China, or Gansu Province to produce Human Lysozyme. The capital city is considered because of its access to China's top scientists.

The first year after the plant is built, Yasheng expects to produce 1,000 Kg of the new Human Lysozyme C Protein to be sold for an estimated market price of US $96,000/Kg (US $96 million). The second year's production is expected to increase to 2,000 Kg for an estimated market price of (US $ 192 million) and the third year is expected to produce 5,500 Kg for an estimated market price of (US $528 million).

The total revenue expected from this new plant is US $816 million over the next four years (including one year building), with a 40 % post-tax profit margin, this should add US $ 326.4 Million in profits over the next three years. The total estimated cost for this project is US $ 9.84 million.

The YaSheng Group expects additional revenues from the worldwide licensing of their patent to produce Human Lysozyme.

The Human Lysozyme C Protein has a huge market. At present the Worldwide gross annual output of Lysozyme is 300 tons, but the world demand is estimated at 1,000 tons. The price of Human Lysozyme is 100 times that of "egg white" Lysozyme which is currently being used, due to the anticipated high demand for the Lysozyme C Protein. The YaSheng Group plans many applications for the Lysozyme C Protein to be announced later.

About YaSheng Group:

The YaSheng Group (OTC: YHGG) is a diversified industrial conglomerate incorporated in Redwood City, California, operating in hi-tech agriculture, salt chemistry and biological technology as its core business with advantages in rich land, mineral resources, capital and technology reserves.

Through its 136 subsidiaries, the company operating categories include: Chemical engineering, agricultural production, biotech, pharmaceuticals, textile products, printing and dyeing, commercial trading, beverages and inorganic salt manufacturing.

Forward-Looking Statements:

Certain statements contained in this press release are forward-looking statements that involve risks and uncertainties. The statements contained herein that are not purely historical are 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. Forward-looking statements deal with the Company's current plans, intentions, beliefs and expectations and statements of future economic performance. Statements containing terms like "believes," "does not believe," "plans," "expects," "intends," "estimates," "anticipates" and other phrases of similar meaning are considered to imply uncertainty and are forward-looking statements.

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