SOURCE: Sino-Biotics, Inc.

July 17, 2008 08:51 ET

Sino-Biotics, Inc. Acquires Leading China-Based Fluorescent Lighting Company CH International Holdings, Inc. Through Completion of Reverse Merger; In First Half of Fiscal 2008, New Sino-Biotics Subsidiary CH International Saw Revenues Climb 213% to $37,141,000, While Profits Grew to $5,913,000

New Sino-Biotics President and CEO, Mr. Zhao Guosong, Sees Strong Domestic and International Growth for the Company's Environmentally Friendly, Energy Efficient Lighting Products and Services

JINHUA, CHINA--(Marketwire - July 17, 2008) - Sino-Biotics, Inc. (OTCBB: SBTI), previously a "blank check" Company trading on the Pink Sheets and OTC Bulletin Board, took a significant step forward today with the completion of a reverse merger through which it has acquired CH International Holdings Limited (CH International). The transaction positions Sino-Biotics as one of the world's leading designers, manufacturers and exporters of a wide variety of fluorescent lighting products and a leading company in China in the rapidly growing special light source market, with a wide variety of "green," environmentally friendly lighting products and services that, among other things, reduce power consumption, grow plants and improve health.

In conjunction with the transaction, as described below, Mr. Zhao Guosong, the founder of CH International in 2004, and a highly experienced lighting industry executive who is also the largest shareholder of Sino-Biotics (through his majority ownership in KEG International Limited), has been appointed as a Director and President and CEO of the Company; Ms. Gan Carying has also been appointed to serve as a Director (Vice Chairman), and Mr. Huang Hsiao-I has been appointed to serve as Chief Financial Officer.

Description of the Transaction

As described in the Company's Current Report on Form 8-K as filed with the SEC on July 16, 2008, Sino-Biotics, Inc., a Delaware corporation, entered into a Share Exchange Agreement with CH International, a British Virgin Islands investment holding company and KEG International Limited, a British Virgin Islands company and the sole stockholder of CH International (KEG). As a result of the share exchange, Sino-Biotics acquired all of the issued and outstanding securities of CH International from KEG in exchange for 93,000,000 newly-issued shares of the Company's Common Stock, par value $0.001 per share, representing seventy-seven and one half percent (77.5%) of Sino's issued and outstanding Common Stock as of July 16, 2008. The exchange is intended to constitute a tax-free reorganization pursuant to the provisions of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended. As a result of the exchange, CH International became a wholly-owned subsidiary of Sino-Biotics.

Simultaneously with the filing of the Current Report, Sino-Biotics also filed with the U.S. Securities and Exchange Commission an Information Statement complying with Rule 14f-1 under the Securities Exchange Act of 1934, as amended, that describes a change in a majority of the Company's Board of Directors that shall, not earlier than ten (10) days following the date of such filing, occur in connection with the change of control of Sino-Biotics described in the Current Report.

FY '08 First Half Revenues Grow 213%

As reported in the Current Report, in the first half of Fiscal '08, ending March 31, 2008, CH International, now a wholly-owned subsidiary of Sino-Biotics, increased revenues to $37,141,000, up approximately 213% from $11,850,000 in the same period in the prior fiscal year. FY '08's six month revenues also were higher than full year FY '07 revenues of $32,379,000 for the year ended September 30, 2007. Net income through the first six months of FY '08 also increased dramatically to $5,913,000 from $618,000 in the same period last year and $1,969,000 at the end of FY '07.

These reported gains were attributed largely to the Company's recent expansion with its environmentally friendly products into the Chinese domestic market, where first half sales increased by $9,534,000, an increase of approximately 1,102% over the same period in FY '07, while exports in the period also increased by approximately 143%. Domestic revenue in the FY '08 first half was $10,399,480 compared with overseas revenue in the period of $26,741,520.

Continuing Growth Opportunity

Mr. Zhao Guosong, President, CEO and Director of Sino-Biotics, Inc., commented, "We are very excited about taking this latest important step in further building our leadership and growth prospects in the fluorescent lighting field." He added, "As China -- which has become the world's largest lighting products manufacturer -- and the rest of the world increasingly face the twin issues of high energy costs and a deteriorating environment, we offer lighting solutions and high end products and services that improve health and working and learning conditions, and that also are energy efficient and environmentally friendly. Consequently, we see a very large and growing market opportunity for our innovative products domestically as well as internationally."

About the Company

Based in Jinhua, China, CH International, founded in 1994 and now a wholly-owned subsidiary of Sino-Biotics, Inc., is a diversified designer, manufacturer and exporter of more than 1,000 types of fluorescent lighting and related products. It is the leader in China in environmentally friendly special lighting products such as Air Cleaning Lamps, Power Saving Lamps and Plant Growth, Vision Improvement and Performance Improvement Lighting Products. Additionally, just over a third of its products are General Light Products which account for approximately 8% of China's linear fluorescent lamp manufacturing, making it the third largest manufacturer of these products in the country. While exports of the Company's products around the world continue to grow rapidly, it is increasingly focused on domestic sales, encouraged and supported by government policies aimed at reducing power consumption and improving the environment. Additional product information is available at

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the U.S. Securities and Exchange Commission from time to time. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

No securities regulatory authority has either approved or disapproved the contents of this news release.

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