American Dairy, Inc. Introduces Walnut Powder Series

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American Dairy, Inc. (OTCBB:ADIY - News), one of the leading producers and distributors of milk powder and soybean products in China, announced that it began introducing its walnut products in September 2004.

American Dairy, Inc. (OTCBB:ADIY - News), one of the leading producers and distributors of milk powder and soybean products in China, announced that it began introducing its walnut products in September 2004.

ADIY's new walnut processing plant will be completed in January 2005; the company will be testing the new facility until April 2005. Production at the new processing plant will be initiated once the testing concludes. The Company is currently outsourcing the walnut powder production to various local mills.

"We are outsourcing our walnut powder production so that valuable time will not be wasted," said Leng You Bin - CEO. "Our walnut powder series will be packaged with the `Feihe' brand name, which will promote brand awareness."

The company's walnut products were submitted to the government's Quality Engineering Supervision Bureau for examination. American Dairy's walnut powder series includes five product variations. All five products were evaluated individually based on its production process, ingredients, and functionality. The "food expert group" assembled by the bureau first confirmed that the product met the government's production process requirements. Next, the products were evaluated for their functionality and the different effects on a variety of consumers.

Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors, including the risks associated with the effect of changing economic conditions at home and abroad, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product and service development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products and services, and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time.

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Mathew Wang
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