XXXXXXXX/KIWA
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Kiwa Bio-Tech Signs One-Year Contract For $34 Million
Claremont, CA, August 2, 2006 Kiwa Bio-Tech Products Group Corporation (OTCBB:
KWBT) has signed with China Xxx Xxxx Roneo Corporation. China Xxx Xxxx Roneo
Corporation has agreed to order 200,000 tons of urea. The urea will be mixed
with Kiwa's products, particularlyKiwa Yimuling, a bio-fertilizer, which will be
sold pursuant to a separate contract to be entered into between the parties. The
term of the agreement is 18 months and is extendable for an additional period of
six months. The value of the contract is US$34,000,000, based on a value of
US$170 per metric ton.
China Xxx Xxxx Roneo Corporation is a subsidiary of China Council for the
Promotion of International Trade, and sells Chinese products to Southeast Asia
and European countries.
The products covered by this contract will primarily be exported to Philippines
and Viet Nam. In order to meet the requirements of clients in Philippines and
Viet Nam, the R&D Center of Kiwa has focused on developing a scientific way to
use Kiwa Yimuling bio-fertilizers compounded with urea. Currently, Xxxx's
products have passed tests in Viet Nam, and the Ministry of Agriculture of Viet
Nam is expected to issue a distribution license for Kiwa's products in August.
In order to meet its obligation to supply urea, Xxxx has signed a contract with
Shengkui Technologies, Inc. to purchase from Shengkui 1,200,000 metric tons of
prilled urea N 46% agricultural grade conforming to certain specifications set
forth in the agreement. The term of the agreement is 18 months and is extendable
for an additional period of six months. The aggregate value of contracted
deliveries under the agreement is approximately US$162,000,000, based on a value
of US$135 per metric ton.
For more details on these contracts including delivery commitments and terms of
credit and purchase, please refer to the 8k report filed by Kiwa with the United
States Securities and Exchange Commission are available free of charge at
xxxx://xxx.xxx.xxx.
About Kiwa Bio-Tech Products Group Corporation
The Company develops, manufactures, and distributes and markets innovative,
cost-effective, and environmentally safe bio-technological products for
agricultural and natural resources and environmental conservation. The Company's
products are designed to enhance the quality of human life by increasing the
value, quality and productivity of crops and decreasing the negative
environmental impact of chemicals and other wastes. For more information about
the Company, please visit the Company's website at xxxx://xxx.xxxxxxxxxxx.xxx.
XXXXXXXX/KIWA
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This press release contains information that constitutes forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Any such forward-looking statements involve risk
and uncertainties that could cause actual results to differ materially from any
future results described by the forward-looking statements. Risk factors that
could contribute to such differences include those matters more fully disclosed
in the Company's reports filed with the Securities and Exchange Commission. The
forward-looking information provided herein represents the Company's estimates
as of the date of the press release, and subsequent events and developments may
cause the Company's estimates to change. The Company specifically disclaims any
obligation to update the forward-looking information in the future. Therefore,
this forward-looking information should not be relied upon as representing the
Company's estimates of its future financial performance as of any date
subsequent to the date of this press release.
Contact:
Kiwa Bio-Tech Products Group Corporation
Xxxxxx Xxxx
626 715 5855
Xxxxxx Xxxx
000-0000-00000000
xxxxxxxxxxx@xxxxxxxxxxx.xxx
Investor Relations
Xxxxxx Xxxxxxxxx
Corporate Insights/Equity Communications
(000) 000 0000 xxxxxxxxxx@xxxx-xxxxxxxx.xxx
