SOURCE: Yasheng Group

July 28, 2011 15:00 ET

Yasheng Group to Enter China's Milk Powder Market

REDWOOD CITY, CA--(Marketwire - Jul 28, 2011) - Yasheng Group (OTCQB: YHGG) (PINKSHEETS: YHGG) (XETRA: YSF), a high-growth diversified China-based agricultural conglomerate with U.S. headquarters in California, today announced plans to begin importing milk powder from the U.S. to China.

According to China Dairy Industry Association, the infant formula milk powder market in China has had an average annual increase of 22.9% since 2000 and is now the second largest in the world. It is estimated that the infant formula market will reach $6.8 billion in 2011 and that China will become the biggest consumer in the near future with over 20 million newborns every year.

In the face of this opportunity, Yasheng plans to use its growing U.S. presence to enter into China's milk powder market by importing high-quality infant formula from the U.S. The company intends to utilize its long-established distribution network across China to gain 3% shares of the infant milk powder market in the next three years.

Chairman Zhou Chang Sheng summarized, "We see China's milk powder market becoming one of the most important markets in the global food industry. We understand China's market and have numerous advantages. Our milk powder will be produced and packaged in the U.S. All products are made to exacting FDA standards. Each container load will be shipped with complete Certificate of Analysis before distribution across China through our nationwide network."

Yasheng Group

Yasheng Group (OTCQB: YHGG) (PINKSHEETS: YHGG) (www.yashenggroup.com), founded over 30 years ago, is a U.S. holding company that conducts primarily agricultural operations in the Northwest of China. Today it is one of China's leading producers and marketers with six major product segments including field crops, vegetables, fruit, specialty crops, hops, hemp, seeds, beef and poultry. Yasheng is a supplier of high-quality agricultural products to world-famous conglomerates such as McDonald's, KFC, Tsingtao Beer, and Pepsi. The company is led by a highly qualified management team and it has total assets of approximately $1.9 billion including over 250,000 acres of agricultural land that are utilized for grazing, cultivation, and reclamation, of which 50,000 acres are under cultivation using the latest scientific technologies to produce a wide variety of agricultural products. Yasheng has over 15,000 employees, and a history of strong sales and earnings growth.

Safe Harbor Statement

Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the company's various filings with the Securities and Exchange Commission. The company assumes no obligation to update these forward-looking statements.

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