SOURCE: China Northwest Biotech Inc.

January 11, 2007 11:16 ET

China Northwest Terminates Merger

ORLANDO, FL -- (MARKET WIRE) -- January 11, 2007 -- China Northwest Biotech Inc. (PINKSHEETS: CNWB) wishes to announce that it has terminated the acquisition of Xian Chong Yang Sci-Tech Stock Co. (Chong Yang) effective immediately.

Due to the inability of Chong Yang to transfer assets to its Parent company, Top Sonic Inc. of British Virgin Islands, and with no timely financial reporting provided to China Northwest, the board has unanimously resolved to terminate merger with Chong Yang.

The CEO, Michael Dooley, said; "We have exhausted all options to resolve the outstanding issues and have given The Chong Yang Group more than ample time to deliver what was required by the merger agreement. Since Chong Yang didn't adhere to what was agreed originally in the merger agreement, the company has no choice but to terminate the merger."

The company is currently in talks with several potential candidates for mergers or acquisitions. The goal of management has always been to enhance shareholder value and to maximizing shareholder value. Management feels that termination at this stage is necessary to enable other potential business opportunities to develop so that the Company can move forward.

Forward-Looking Statements

Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially form the expected results

Contact Information

    China Northwest