China Kangtai Cactus Biotech Signs Cooperative Production Agreement for Patented Cactus-based Low and Zero Nicotine Cigarettes

October 6, 2009

HARBIN, China, Oct. 6 /PRNewswire-FirstCall/ — China Kangtai Cactus Biotech Inc. (OTC Bulletin Board: CKGT), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that the company has signed a five-year cooperative production agreement with Jiangsu Nanhuanghai Industry & Commerce Co., Ltd. to produce cactus-based cigarettes. The new patented cactus cigarettes are expected to increase sales by approximately $220,000 in the fourth quarter.

Nanhuanghai, based in Rudong County, Jiangsu Province, is an approved cigarette manufacturer by China’s State Administration for Industry & Commerce and China’s State Tobacco Monopoly Bureau. Under the agreement, China Kangtai provides patented technology, raw materials, quality control guidelines and technical support. Nanhuanghai, as the processor, provides processing facilities and production labor. China Kangtai pays production fees to Nanhaunghai.

The production agreement covers two products: (i) low nicotine and (ii) zero nicotine cigarettes. The low nicotine cigarette is made from cactus, honeysuckle, ginkgo biloba leaves and a small amount of tobacco. This cactus-derived cigarette lowers tar and nicotine content by 70%. The zero nicotine cigarette is made without any tobacco. It offers taste and enjoyment equivalent to regular cigarettes, but eliminates nicotine. It also greatly reduces harm related to secondhand smoke.

China Kangtai CEO Jinjiang Wang said, “China has about 390 million smokers, accounting for 30% of global smokers. Our cactus health-preserving cigarette market represents a huge growth opportunity in China. Our strategic alliance with a cooperative cigarette manufacturer enables us to fill orders quickly with short production runs and to reduce requirements for fixed asset investment.”

About China Kangtai Cactus Biotech, Inc.

China Kangtai Cactus Biotech, Inc. is a leading grower, developer, producer, and marketer of cactus-derived products, including nutraceuticals, nutritious food, health and energy drinks, beer, wine and liquor, extracts and powders, and animal feed. China Kangtai controls over 387 acres of plants and maintains an active R&D group that holds 18 product patents and is seeking another 12. China Kangtai’s high-quality “green” products are sold throughout China via a distribution network that covers 12 of China’s 23 provinces and two of China’s four municipalities. More information may be found at http://www.biocactus.com or via e-mail: chinakangtai@gmail.com.

An investment profile on China Kangtai Cactus Biotech Inc. is available at http://www.hawkassociates.com/profile/ckgt.cfm. For an online investor relations kit, visit http://www.hawkassociates.com.. For more investor-related questions, contact Susan Zhou, Hawk Associates, at 305-451-1888, e-mail: cactus@hawkassociates.com. To subscribe to future releases via e-mail alert, visit http://www.hawkassociates.com/about/alert/.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

SOURCE China Kangtai Cactus Biotech Inc.

Source: newswire

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