SOURCE: Sunwin International Neutraceuticals, Inc.

December 15, 2005 08:00 ET

Sunwin International Neutraceuticals Achieves Record Revenues and Earnings for Q2 of Fiscal Year 2006, EPS of 0.02

FORT LAUDERDALE, FL and QUFU, CHINA -- (MARKET WIRE) -- December 15, 2005 -- Sunwin International Neutraceuticals, Inc. (OTC BB: SUWN), an industry leader in the production and distribution of Chinese herbs, veterinary medicines and low calorie natural sweetener (Stevia) in China, today announced record financial results for the second quarter ended October 31, 2005 of fiscal year 2006.

The Company recorded revenues of $4.052 million for the quarter ended October 31, 2005; this represents a 28% increase from $3.159 million recorded for the same period in fiscal 2005. Net income surged to approximately $898,530, a 1,325% increase over the $63,030 in net income reported for the same period in fiscal year 2005. This translates to an EPS of $0.02 per share for the second quarter. The improved results are a direct response to the increased demand of Sunwin's products as well as a result of new cost controlling measures. For more details about Sunwin's financial performance, please review the 10-QSB filed with the United States Securities and Exchange Commission.

As of the second quarter of the fiscal year 2006, the Company had $2.38 million in cash and cash equivalents, a 249% increase from $0.682 million recorded for the same period in fiscal year 2005. Shareholder equity increased to $7.096 million or book value of $0.16 per share, its highest level ever, a 67% increase from $4.247 million recorded for the same period in fiscal year 2005.

Laiwang Zhang, Chairman and President of Sunwin, commented, "We are very pleased with the financial performance for the second quarter. We continue to achieve record revenue and earning growth in our core businesses, while effectively controlling expenses, improving profitability and strengthening the balance sheet. We are very excited about the coming fiscal years, as the Company has made significant investments to upgrade its manufacturing facilities. Management is very optimistic about our prospects, as demand continues to accelerate for our low-calorie natural sweetener (Stevia), Chinese herbs, and veterinary medicines worldwide. The upgraded manufacturing facilities will assure our leading position in the industries, thereby contributing to substantial growth in our sales and earnings. We expect to substantially increase our sales and profit margins in all of the three divisions in the coming fiscal quarters and years."

About Sunwin International Neutraceuticals, Inc.

Sunwin International Neutraceuticals, Inc. ("Sunwin") (OTC BB: SUWN) is engaged in the areas of essential traditional Chinese medicine, 100% organic herbal medicine, neutraceutical products, natural sweetener (Stevioside), and animal medicine prepared from 100% organic herbal ingredients. As an industry leader in agricultural processing, Sunwin has built an integrated global firm with the sourcing and production capabilities to meet the needs of consumers throughout the world. Sunwin also makes such value-added products as specialty veterinary food ingredients and specialty feed ingredients. The Sunwin family works closely with consumers to provide a quality, value, and a hybrid mix of agricultural products and services that meet growing demand. In 2002, Sunwin was recognized as one of the first 2,000 state-level companies that China authorized as the most important innovative high-tech pioneer businesses by the Chinese central government. In 2002, Sunwin was awarded as one of 2002 state-level biological product manufacturers in China. In 2003, Sunwin ranked as one of the top 50 companies of China Animal Related Health Care Product Pharmaceutical Industry. In 2003, Sunwin received award of Shandong Top-Ten Innovative, High-Tech Businesses by the Province Government of Shandong. For more info about Sunwin, please visit

Safe Harbor Statement

Certain of the statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.

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