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China Ruitai Adds Additional 500 Tons Capacity of Ethyl Cellulose

July 13, 2010

FEICHENG, China, July 13 /PRNewswire-Asia-FirstCall/ — China Ruitai
International Holdings Co., Ltd. (“China Ruitai” or the “Company”)
(OTC Bulletin Board: CRUI), a manufacturer of cellulose ether additives for
use in the production of pharmaceuticals, construction materials, PVC products,
foods, and cosmetics, today announced it has completed the installation and
will begin production on its new ethyl cellulose (“EC”) production line for
the pharmaceutical markets in China and international markets.

The additional 500 tons of new production will increase China Ruitai’s
current capacity to 620 annual tons of ethyl cellulose. Valued at $9,500 per
ton, the new 500-ton ethyl cellulose production line can contribute $4.8
million
in yearly revenues at approximately 45% gross margins. The total cost
of the production line and building on 90-acres of land was $2.2 million,
which the Company financed through debt and cash flows from operations. The
payback period on the new production line is expected to be less than three
years. In total, China Ruitai has 8,500 tons of capacity for its 12 cellulose
ether product categories and more than 260 unique cellulose ether formulations.
The principal raw material for Ruitai’s organic cellulose ether is ginned
cotton grown and harvested in northeast China.

Ethyl cellulose manufactured by China Ruitai is used primarily as a
chemical additive in the production and manufacturing of pharmaceutical
medicine tablets. The company maintains more than a dozen domestic and
international customers who have shown preference for China Ruitai’s
high-standards and product quality. This particular formulation of ethyl
cellulose is not water soluble and added to formulas of tablet-form medicines
as a binding agent to shape tablets and maintain their resistance to moisture.
By making changes in the concentration and formula of ethyl cellulose, EC
manufactured by China Ruitai can also be used in other industries including
PVC manufacturing, paints, rubber and food additives as a binding and adhesive
agent in products.

Pharmaceutical companies are the target customers for EC in both domestic
and international markets. China Ruitai reported that upon its successful
production runs of its new EC line, the Company received three orders from
domestic and international customers of EC totaling 22 tons valued at
approximately $0.2 million. The production line can manufacture an average of
1.7 tons of EC daily under the full capacity production.

“China Ruitai was the first company in China to develop and manufacture
ethyl cellulose in 2001 when we brought on line our first EC line,” began
Dianmin Ma, Chairman and CEO of China Ruitai. “A significant focus on research
and development is primary to our success in developing and marketing EC in
China and abroad. EC customers are challenging to obtain since the
requirements for pharmaceutical additives are stringent. As demand for EC has
grown over the years, adding an additional 500-ton line was needed to meet EC
demand from our domestic and particularly international customer base, which
accounts for 80% of our EC production. It also reflects our strategy to shift
our focus to the high margin product in this competitive market. We are
confident our sales and marketing teams will be able to secure orders for our
new capacity enabling accretive revenues and earnings from our new line in
2010 and in the years ahead.”

About China Ruitai International Holdings Co.

China Ruitai is engaged in the production, sales, and exportation of
specialty 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
     New York and Connecticut
     Web:   http://www.hcinternational.net
     Tel:   +1-203-616-5144
     Email: john.mattio@hcinternational.net

SOURCE China Ruitai International Holdings Co., Ltd.


Source: newswire