SOURCE: Eternal Technologies Group, Inc.

April 27, 2005 13:45 ET

Eternal Technologies Group Announces Sale of E-Sea Biomedical Engineering Co. International, Ltd.

HOUSTON, TX -- (MARKET WIRE) -- April 27, 2005 -- Eternal Technologies Group, Inc. (OTC BB: ETLT) today announced that due to the accounting complexity associated with its acquisition of E-Sea Biomedical Engineering Co. International, Ltd., the Board of Directors of Eternal has decided to sell E-Sea back to its original owners. Effective immediately, Eternal will return all assets and intellectual property of E-Sea. In return, E-Sea shareholders will return all shares of Eternal that were paid to E-Sea shareholders as a result of the acquisition.

Over the past 7 weeks, the Management Team of Eternal as well as the company's auditors have worked diligently to complete the audit of the year-end financial statements. It is now apparent that due to the complexity of E-Sea's technology in relation to ownership rights and details regarding the intellectual property portfolio, the Board of Eternal has decided that the company could not retain the business of E-Sea while ensuring the accuracy of the financial statements in relation to E-Sea.

Mr. JiJun Wu, Chairman of the Board of Eternal Technologies Group commented, "Although the reversal of the E-Sea acquisition is disappointing, the Board of Eternal as well as the entire Management Team have decided that this is the right decision at this time. We have gone to great efforts to gain the trust of the investment public. In the end, there was no other viable alternative than to reverse this transaction. We would like to wish all shareholders of E-Sea the very best in the future."

About Eternal Technologies

Eternal is a major agricultural genetics and biopharmaceutical R&D firm operating in China with the support of the Chinese Government. Eternal's animal breeding division has a strong asset base, cash position and net income. Eternal has become one of China's leading institutions for biopharmaceutical and biotech research, pure breed cultivation and breed stock production. The Company has secured a key market niche by commercializing gene engineering technologies and providing superior breeding stock, allowing China's citizens the ability to improve their living standards. With the world's largest population, a double-digit national growth rate and entry into the WTO, Eternal Technologies has a playing field set for tremendous opportunity. As a prominent player in the agricultural genetics industry, cash in the bank and an untapped market, Eternal has the potential to become a major player in China's national growth.

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