SOURCE: Yasheng Group

March 04, 2008 08:00 ET

YaSheng Set to Expand Agricultural Biotechnology R&D Spending Along With China Trends

REDWOOD CITY, CA--(Marketwire - March 4, 2008) - The YaSheng Group (PINKSHEETS: YHGG) over the past 10 years has expanded Agricultural Biotechnology R&D spending following suit with China's National Trends. YaSheng Group is leading the way in Northwest China in R&D through their Educational Institutes and high-tech R&D Growing Centers. As the company implements its international expansion plans, past and future investment into R&D will continue to fuel future growth.

"Chinese set to quadruple Agricultural Biotechnology spending"

An article published March 16, 2007 in The Financial Times of London, by Salamander Davoudiin, best reflects YaSheng's Past and Future R&D plans in their agriculture sector. By 2010, the Chinese government is expected to more than quadruple its spending on biotechnology as part of its strategy to improve national food safety and health standards.

"Spending on biotechnology is expected to increase fivefold," said Zhang Liang Chen, president of the Agricultural University of China.

Jikun Huang, director of the Centre for Chinese Agricultural Policy in Beijing, said spending on agricultural biotechnology was due to at least double, although the budget for the next five years had yet to be finalized. "There will be a substantial increase in investment in biotechnology, especially agricultural biotechnology," Huang said. China already accounts for 20% of global investment in R&D focused on agriculture and biotechnology. According to Mr. Huang, the Chinese government spent $200M on agricultural biotechnology in 2003, an amount that has since doubled. China's population currently stands at 1.3B, or about 20% of the world's total population. By 2020, it is expected to climb to 1.5B. Yet, the country claims only 7% of the world's total arable land.

YaSheng Group has invested significant capital into agricultural R&D over the past 5 years. This investment, in conjunction with drought & insect resistant strains, and advanced drip irrigation has increased production of Hops, Potato, Corn, Seedlings, and Fruit crops. These improvements have helped secure new long term contracts with Kentucky Fried Chicken, Tingzhou, Yanying, and other major companies. YaSheng will continue to invest in Agricultural Biotechnology over the next 5 years to continue this upward trend.

"Establishing the ability to produce foods that meet all international and domestic demands remains a key focus of the company," says Chairman Zhou Cheng Sheng. "With the demands for Natural Organics on the rise given the conflicts revolving around genetically modified foods, food quality safety, and the need to feed a large population we must diversify our growing methods to ensure long term stability," added Sheng.

YaSheng Group has many projects that will come on-line over the next two years. "Part of their strategy is to keep a regular cycle of new and innovative projects on-line as old business cycles retire. This modernization effort will replace the obsolete and continue the growth and viability of the company," adds Chairman Zhou. "This will be best reflected in the second half of our 5 & 10 year expansion plan," said Zhou.

YaSheng Group continues to restructure from traditional business lines while focusing on profitable products as part of its preparation for International Restructuring, U.S. Public Listing, and the Global Expansion Plan.

About YaSheng Group:

The YaSheng Group (PINKSHEETS: 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, 2007.

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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