China-Biotics, Inc. Files for 5 New Patent Applications

SHANGHAI, Feb. 17, 2011 /PRNewswire-Asia-FirstCall/ -- China-Biotics, Inc.(“China-Biotics”, the “Company”) (NASDAQ: CHBT), the leading developer, manufacturer and distributor of probiotics products in China, today announced it has applied for 5 new patents through its wholly owned subsidiary Growing Bioengineering to the State Bureau of Intellectual Property. These patent applications are related to new products and preparation methods under development for baby care, daily health and beauty product, female hygiene, and soy milk markets.

A patent has been filed for a new probiotics supplement and its preparation, to strengthen babies’ immune and digestive systems to reduce diarrhea, a frequent condition for small children. A second patent is for micro-capsulation technique used to create probiotics used in daily health and beauty products. Another patent has been filed for probiotics to be used in female hygiene products. A patent for the preparation of and for the probiotics to be added to soy milk has been filed. The final patent is for the manufacturing methods and uses of the Company’s technology for a heat-resistant micro-encapsulated probiotics.

When introduced, these products will be China-Biotics’ first entry into these new markets, which have large growth potential and recurring purchase tendencies.

Mr. Jinan Song, Chairman and CEO of China-Biotics, commented, “As we successfully ramp up the utilization rate of our Qingpu facility, our research and development team are proactively developing more and more new applications for probiotics to meet the needs of an ever growing Chinese consumer base. The benefits of probiotics are becoming increasingly acknowledged by a more health-aware population. We are confident that our efforts in introducing innovative products for new markets will augment our growth in the future and broaden probiotics usage.”

About China-Biotics

China-Biotics, Inc. (“China-Biotics” or “the Company”), a leading manufacturer of biotechnology products and supplements, engages in the research, development, marketing and distribution of probiotics dietary supplements in China. Through its wholly owned subsidiaries, Shanghai Shining Biotechnology Co., Ltd. and Growing Bioengineering (Shanghai) Co. Ltd., the Company develops and produces a proprietary product portfolio. Currently, its retail products are sold over the counter, mainly through large distributors, to pharmacies and supermarkets in Beijing, Shanghai, and Jiangsu and Zhejiang provinces. The Company also sells bulk products to institutional customers such as dairy and animal feed producers as well as pharmaceutical companies. In February 2010, China-Biotics began its commercial production in China‘s largest probiotics production facility to meet the growing demand in China. For more information, please visit http://www.chn-biotics.com.

Safe Harbor Statement

The information in this release contains forward-looking statements which involve risks and uncertainties, including statements regarding the Company’s capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project,” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results. Any or all of the Company’s forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions, risks and uncertainties and other factors which could cause actual events or results to be materially different from those expressed or implied in the forward-looking statements. In evaluating these statements, readers should consider various factors, including the risks described in “Item 1A. Risk Factors” beginning on page 17 and elsewhere in the Company’s 2010 Annual Report on Form 10-K. These factors may cause the Company’s actual results to differ materially from any forward-looking statement. In addition, new factors emerge from time to time and it is not possible for the Company to predict all factors that may cause actual results to differ materially from those contained in any forward- looking statements. The Company disclaims any obligation to publicly update any forward-looking statements to reflect events or circumstances after the date of this document, except as required by applicable law.

SOURCE China-Biotics, Inc.