China Kangtai Cactus to Enter German Tobacco Market

HARBIN, China--(BUSINESS WIRE)--

China Kangtai Cactus Biotech Inc. CKGT, a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that it has signed sales agreements with Apollo Duty Free Shop GMBH and Tobosst Duty Free Shop GMBH, two of the biggest duty-free stores in Frankfurt, to sell Kangtai's cactus-based “Sheng Cao” cigarettes in Germany.

The company has completed market surveys in Frankfurt and received positive consumer feedback. China Kangtai also invited several German tobacco dealers to help the company improve the taste and smell of “Sheng Cao” to enhance its quality. The company signed the agreements with the two duty-free companies in August and expects new revenue from the German market will be approximately 2.7 million EUR annually (approximately $3.7 million USD). Kangtai has initiated discussions with these two companies about possible sales of cactus powder and neutraceuticals.

Apollo is one of the largest professional duty-free companies in Germany and represents well-known European brands. Apollo's retail store located at Romerberg serves 100,000 customers annually and has monthly sales of around one million EUR (approximately $1.4 million USD). Tobosst's retail stores, along the Main River, sell luxury products such as watches, furniture, and tobacco products and have annual revenue over 10 million EUR (approximately $14 million USD).

China Kangtai CEO Jinjiang Wang said, “Expanding our market to Europe is an important step for our company. Besides the expected increase in cigarette revenue, this milestone for our company attests to the high quality of our products and demonstrates that Kangtai's strong sales and promotion team has great potential to further penetrate the European markets and add new revenue streams that will increase the value of our company.”

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.

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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.