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Yuhe International Inc. Provides Update on Breeder Farm Expansion

November 12, 2008

WEIFANG, Shandong, China, Nov. 12 /Xinhua-PRNewswire-FirstCall/ — Yuhe International Inc. (BULLETIN BOARD: YUII) (“Yuhe” or “the Company”), a leading supplier of day-old chickens raised for meat production, or broilers, in the People’s Republic of China (“PRC”), today provided an update on the expansion of its breeder farms in Weifang, Shandong Province.

Yuhe currently has 11 breeder farms and plans to add four additional breeder farms by the beginning of 2009. The Company’s newest breeder farm began production in August 2008 and introduced 100,000 sets of new breeders. Construction of a second breeder farm that will introduce another 120,000 sets of new breeders is currently underway and is scheduled for completion in January 2009. The addition of these two breeder farms will add annual productivity of 29 million day-old broilers and is expected to generate revenue of approximately RMB 87 million ($12.8 million) in 2009.

Yuhe acquired two additional breeder farms using a portion of the proceeds obtained in its March 2008 private placement financing. On June 7, 2008, Weifang Yuhe Poultry entered into an acquisition agreement valued at RMB 17 million ($2.5 million) with Weifang Anrui Poultry Feed Ltd. to acquire its two existing breeder farms with areas of 90,667 and 32,011 square meters, respectively. Yuhe intends to add approximately 100,000 sets of parent breeders to the newly acquired facilities with annual productivity of 13 million day old broilers. The Company plans to start operating the two farms at the end of 2008, and expects them to generate revenues of RMB 39 million ($5.7 million) in 2009.

“Our new breeder farms will allow us to further expand production of day- old broilers in order to meet the growing demand for chicken in China. As with our existing facilities, these farms will use sophisticated imported equipment and employ our high quality production methods,” said Mr. Zhentao Gao, CEO of Yuhe. “We are confident that these facilities will come online as planned and move us forward on the path of becoming the largest day-old broiler breeder in China.”

About Yuhe International, Inc.

Founded in 1996, Yuhe is the second largest day-old broiler breeder in China. The Company’s main operations involve breeding, as all broilers are sold within a day of hatching. With headquarters in Weifang, Shandong province, the Company has modern facilities and is led by an experienced team which includes experts in chicken breeding, disease prevention and animal husbandry science. Yuhe has two operational subsidiaries, Weifang Yuhe Poultry Co. Ltd. and Weifang Taihong Feed Co. Ltd. which largely supplies the Company’s internal demand for chicken feed. Currently, 85% of the Company’s sales are in Shandong province with a customer base of 27 local agents. The Company has imported state-of-the-art equipment from the United States, Germany and Japan and has passed ISO9001 certification, allowing it to adhere to international standards of operation. For more information on the Company and its products, please visit http://www.yuhepoultry.com/ .

Cautionary Statement

This press release contains forward-looking statements concerning the Company’s business, products and financial results. The Company’s actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company’s control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company’s reports filed with the Securities and Exchange Commission. The Company undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

   For more information, please contact:    Yuhe International, Inc.    Mr. Zhentao Gao, CEO    Phone: +86-536-7363-688    Email: yuhe7363688@163.com    Web:   http://www.yuhepoultry.com/    CCG Investor Relations Inc.    Mr. Crocker Coulson, President    Phone: +1-646-213-1915 (New York)    Email: crocker.coulson@ccgir.com    Mr. Graham Reed, Financial Writer    Email: graham.reed@ccgir.com    Web:   http://www.ccgir.com/  

Yuhe International, Inc.

CONTACT: Yuhe International, Inc., Mr. Zhentao Gao, CEO, +86-536-7363-688,or yuhe7363688@163.com; or CCG Investor Relations Inc., Mr. Crocker Coulson,President, +1-646-213-1915 (New York), or crocker.coulson@ccgir.com; or Mr.Graham Reed, Financial Writer, graham.reed@ccgir.com

Web site: http://www.yuhepoultry.com/http://www.ccgir.com/




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