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China Ruitai Boosts Customer Base by 20% During 2010

June 21, 2010

FEICHENG, China, June 21 /PRNewswire-Asia-FirstCall/ — China Ruitai
International Holdings Co., Ltd. (“China Ruitai” or the “Company”)
(OTC Bulletin Board: CRUI), a manufacturer and distributor of cellulose ether
additives for use in the production of pharmaceuticals, construction materials,
PVC products, foods and beverages and cosmetics, today announced that through
the first five months of 2010 it has increased its customer base by 20%
through an aggressive pricing promotion for targeted customers in China.

As a result of decreased cotton production stemming from a cold winter and
drought in key cotton producing regions in northern China, the principal raw
material of China Ruitai’s cellulose ether product line experienced increases
in the first quarter of the year. To offset the increase in its raw materials,
the Company’s production and sales strategy is being shifted to higher margin
products including ethyl cellulose, hydroxypropyl methyl cellulose and film
coating pre-mixed reagent. In combination with this marketing shift, China
Ruitai also deployed an aggressive price promotion that offered a targeted
customer base 2009 pricing for initial orders placed in 2010. This promotion
was specifically presented to the Company’s closest competitors’ customers and
because Ruitai’s competitors increased their prices across the board, the
Company’s offer was well-received and effective to obtain new customers.

The pricing promotion secured an additional 468 customers during the
program’s five month period, which yielded approximately $2.7 million in
revenue. The total number of Ruitai customers now totals 2,193, an
approximate 20% increase in the Company’s customer base from the end of 2009.
The new customers represented manufacturers who require hydroxypropyl methyl
cellulose (HPMC) and ethyl cellulose (EC) to produce their finished goods.
HPMC is widely used in the constructive materials industry and particularly
those who produce putties, mortar, paints and plasters. Additional customers
were secured by the promotion of EC for manufacturers in the pharmaceutical
sector who rely on EC for use in the production of pharmaceuticals.

“Due to a colder than normal winter, we were able to anticipate and plan
for higher cotton pricing,” began Mr. Damming Ma, CEO of China Ruitai. “As the
immediate reaction of most producers was to raise customer list prices, we
took a more aggressive approach by targeting our competitor’s customer base to
gain market share. This strategy caught our competitors off guard with several
smaller producers closing down and has positioned China Ruitai for further
growth. Our leading position in the industry, production capacity, and
financial strength provided us ability to support our program. We plan to
increase prices incrementally through 2010 to more adequately align prices
with raw material costs, which are expected to improve margins. Despite the
increase, China Ruitai will remain one of the most cost effective suppliers in
the market.”

About China Ruitai International Holdings Co.

China Ruitai, through its wholly-owned subsidiary, Pacific Capital Group
and its majority-owned subsidiary, TaiAn, is engaged in the production, sales,
and exportation of deeply processed chemicals, with a primary focus on
non-ionic cellulose ether products. Cellulose ether is an organic chemical
that dissolves in water and other organic solvents. Due to the surface-active
properties of cellulose ether, it acts as a thickener and stabilizer in
aqueous solutions, making it a beneficial additive in a wide variety of
commercial industries and products, including, but not limited to the
pharmaceutical industry, the construction industry, PVC products, food and
beverage products, petroleum, and cosmetics. Specific examples of applications
in which cellulose ether products are used include: as a stabilizer and
thickener in latex paint; in mortar dry mix for building materials; to improve
the performance of resin in PVC production; as a membrane reagent, stabilizer,
and thickener in pharmaceuticals; and to improve jam, ice cream, toothpaste
and lipsticks in the food and cosmetic industries. TaiAn is one of the largest
non-ionic cellulose ether producers in China.

Forward-Looking Statements

Certain statements in this release and other written or oral statements
made by or on behalf of the Company are “forward-looking statements” within
the meaning of the federal securities laws. Statements regarding future events
and developments and our future performance, as well as management’s
expectations, beliefs, plans, estimates or projections relating to the future
are forward-looking statements within the meaning of these laws. The
forward-looking statements are subject to a number of risks and uncertainties
including market acceptance of the Company’s services and projects and the
Company’s continued access to capital and other risks and uncertainties. The
actual results the Company achieves may differ materially from any
forward- looking statements due to such risks and uncertainties. These
statements are based on our current expectations and speak only as of the date
of such statements.

    For additional information contact:

    China Ruitai International Holdings Co., Ltd.
     Ms. Crystal Tang, VP of Finance
     Add:   1221 Avenue of Americas Suite 4200
            New York, NY 10020
     Web:   http://www.rutocel.com
     Tel:   +1-212-899-5131
     Fax:   +1-212-899-3189
     Email: tmqcrui@gmail.com
            crystal@rutocel.com

    HC International, Inc.
     John Mattio, Senior Vice President
     Add:   420 Lexington Avenue
            New York, New York
     Web:   http://www.hcinternational.net
     Tel:   +1-203-616-5144
     Email: john.mattio@hcinternational.net

SOURCE China Ruitai International Holdings Co., Ltd.


Source: newswire



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