SOURCE: Sunwin International Neutraceuticals, Inc.

March 28, 2006 07:30 ET

WallStreet Research Updates Coverage of Sunwin International Neutraceuticals Inc. Shares With Speculative Strong Buy Recommendation at www.WallStreetResearch.org

NEW YORK NY -- (MARKET WIRE) -- March 28, 2006 -- WallStreet Research, a prominent equity research boutique led by Alan Stone, Managing Director of Alan Stone & Company, LLC, announced today that it has released an update report continuing coverage with a speculative strong buy recommendation of Sunwin International Neutraceuticals, Inc. (OTC BB: SUWN), a diversified global nutraceutical company. The complete analyst research report, together with the risks associated therewith and additional information about WallStreet Research, is available at www.WallStreetResearch.org.

Mr. Stone was formerly a securities analyst and assistant portfolio manager at Merrill Lynch Asset Management and an investment analyst at Prudential Insurance Company's Capital Markets Group. WallStreet Research specializes in the microcap and smallcap investment arena, looking for emerging growth companies with strong management, unique or proprietary technology products, significant market potential, financial strength, and outstanding long-term earnings growth possibilities. The firm has offices in Los Angeles, CA, Palm Beach, FL, and New York City, NY, and is well known for discovering undervalued companies and bringing them to the attention of the investment community.

Sunwin International Neutraceuticals, Inc. (www.sunwin.biz), headquartered in Qufu in the Shandong Province of the People's Republic of China, is a diversified nutraceutical company engaged in the development, manufacturing and international sale of a variety of health products for humans and animals. The Company's agricultural processing expertise and convenient access to raw materials in select Chinese farmlands result in high-quality and cost-effective natural products that straddle the healthcare industry and the food & beverage marketplace. Products offered by the Company include a powerful low-calorie natural sweetener called stevioside, numerous herbal extracts rooted in traditional Chinese medicine (TCM), as well as a variety of veterinary medicines and feed supplements. Their innovative nature has in recent years earned state-level recognition and several industry awards for the Company. For the fiscal year ended April 30, 2005, the Company's revenues rose 11% to $12,114,006, and the net income increased 78% to $829,114, or $.02 per share. In the first nine months of fiscal 2006 ended January 31, 2006, total revenues climbed nearly 21% to $11,065,853, and net income grew 474% to $2,025,104, or $0.04. Last September, the Company completed an upgrade and expansion of most of its manufacturing facilities, which not only increased stevioside production capacity to 300 tons per year, or a double-digit percentage share of the global demand, but also fulfilled GMP requirements mandated since the beginning of 2006 by the central government on producers of Chinese herb and veterinary medicines. Trading on the OTC Bulletin Board under the symbol SUWN, the Company is well positioned to immediately capitalize on the temporary competitive advantage resulting from the GMP certification and benefit from the overall growing health concerns among consumers globally, increasing popularity of organic foods and medicines, and the strong condition of the Chinese economy.

As such, despite recent stock price advancement, the shares appear to present a buying opportunity for speculative long-term investors willing to accept the general high risks associated with emerging growth companies, such as potential dilution, reduced liquidity and price volatility of bulletin board companies in general, certain risks specific to doing business in China, including complex political system, foreign exchange fluctuations and currency restrictions, as well as general business risks, such as intense competition within the nutraceutical industry and volatility of commodity prices. Assuming the Company is able to at least maintain its earnings results of $0.02 per share achieved in the last two quarters, the annualized income of $0.08 yields a P/E ratio of less than 20 at current share price level, still not fully reflecting a high organic growth potential, planned synergistic acquisitions of profitable companies or prospective margin improvements on stevioside resulting from aggressive expansion into the North American market, where stevioside sold as a health supplement commands retail prices representing a multiple-fold markup from the Company's wholesale levels. Meanwhile, the Company's management has already released statements about targeting several acquisition candidates that produce approximately 700 tons of stevioside per year in total, which could potentially increase the annual production to approximately 1,000 tons per year, representing 50% to 60% of worldwide demand. The Company's publicly announced goal is to achieve $40 to $60 million in annual sales and $8 to $10 million in net income by April 30, 2008 through both internal organic growth and external acquisitions. Assuming the Company is consistently successful in meeting the management's long term earnings growth targets, SUWN shares could possibly reach a price of $2.40 per share within the next 18 months, representing a P/E multiple of 30 based on current annualized earnings and reflective of the rapid growth expectations.

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.

A Disclaimer Note

The information presented in the WallStreet Research report is not to be construed as an offer to sell, nor a solicitation of an offer to purchase, any securities referred to herein or otherwise. Readers are encouraged to conduct their own due diligence and review all of the company's financial statements and risks statements on file with the SEC. Sunwin International Neutraceuticals Inc. has paid a fee of $5,000 to Alan Stone & Company, LLC in conjunction with the preparation and distribution of this update report, as well as a fee of $15,000 for a prior versions of the report in the past. Alan Stone & Company, LLC, or its representatives, may own shares, for investment purposes, in its corporate accounts, and may increase or decrease its positions at any time, without notice.

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