SOURCE: Yasheng Group

May 10, 2006 08:00 ET

High End Product Lines Bring Fruitful Future for YaSheng Group

REDWOOD CITY, CA -- (MARKET WIRE) -- May 10, 2006 -- The YaSheng Group (OTC: YHGG) continues its focus on high end product lines bringing a fruitful future for YaSheng Group as the company moves forward with the expansion of their agriculture segments at the same time as feeding the growth of new industries.

As previously announced, Yasheng has plans for 33,000 Acre rapid-growth high-yield Forest Plantations by integrating the "Grain for Green Project" in China's "Develop the West Strategy." This strategy accelerates the expansion of vegetation and creates a sustainable environment, modernizing the structure of agriculture; improving the economy for the rural areas, while creating profitable agro products. These products include high end fruit orchards, alfalfa feed, as well as rapid-growth high-yield forest products. See our previous announcements

Apricots, Pears, Alfalfa, and Forest Products have been chosen for their overall characteristics to become sustainable, profitable agro products with long-term cycles.

The apricot and pear segment will do well because the HeXi district in Gansu has long hours of sunshine and a big difference in temperature between day and night. This is advantageous for fruits to accumulate sugar, grow big, and to gain bright colors. The fruits produced here are of top grade in appearance, size, and quality in the domestic and international markets. These Orchards will become a biological asset that will have long term financial benefits. When the fruit trees are fully yielding, it is projected that they will yield 47,500 tons of apricots and 60,000 tons of pears per year.

The Alfalfa originated from Xinjiang and has strong roots, grows fast, and has high yields. It has become the choice feedstuff for stockbreeding and other uses in China. The alfalfa hay meal produced in this district was sold at an average of about $125 dollars/ton in the international market in 2000, and the price increased to about $160 dollars/ton in 2003. In the next ten years, the stockbreeding in China will enter a period of rapid development, and there will be a high demand for feedstuff. It is projected that the base can produce 400,000 tons of alfalfa grass (or 72700ton hay meal) per year.

The poplar is a kind of tree planted for ecological forests and chosen for the three-north shelterbelt forest in the west of China. By adopting modern bioengineering technologies and introducing gene technology, YaSheng Group has cultivated a new transgenic variety of poplars which not only is more suitable for the bad dry environment but also has many good characteristics, such as growing fast, high yield, and it is more resistant to the woodworms. The timber of the poplar is extremely fine and is of high-grade for raw material for board. It is the most popular for fast-growing, high-yield forests and can be fully-grown in 6 years. Planting a yearly cycle will produce 150,000 m3 timber for building materials and boards every year. China is the largest timber importing country in the world. The price for the imported timber has risen from $50/m3 in 1990s to $125 /m3 at present.

With these model projects underway, expanding farms to meet growing demands will be implemented each year. The company also expects to see increased yields and improvements in quality as YaSheng Group integrates its high tech agriculture and biotechnology.

About YaSheng Group:

The YaSheng Group (OTC: YHGG) is a diversified industrial conglomerate incorporated in Redwood City, California, operates 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 three major industries, Agriculture, Chemical, and Biotechnology, the company's operating categories include: chemical engineering, agricultural production, biotech, pharmaceuticals, textile products, printing and dyeing, commercial trading, beverages and inorganic salt manufacturing. With total assets of approximately $1.5 billion USD and over 15,000 employees, YaSheng Group has 155,097,355 shares issued and outstanding as of December 1, 2004.

Further information concerning YaSheng Group can be found on the corporate website:

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.

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