China Kangtai Cactus Biotech Awarded $2.1 Million Contract for Patented Cactus-based Low and Zero Nicotine Cigarettes

HARBIN, China--(BUSINESS WIRE)--China Kangtai Cactus Biotech Inc. (OTCBB: CKGT), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that it has received a RMB 14.30 million (approximately US $2.1 million) one-year contract for cactus-based low and zero nicotine cigarettes from Suifenhe Xinyue Trading Co., Ltd.

Suifenhe Xinyue, based in Suifenhe City, Heilongjiang Province, has been a distributor of health care products and bio-tech products since 2001.

In the fourth quarter of 2009, China Kangtai launched two new cactus-based cigarette products, low nicotine and zero nicotine cigarettes, and by December 31, 2009 had generated sales of approximately $316,000.

The low nicotine cigarette lowers tar and nicotine content by 70%. The zero nicotine cigarette, which is made without tobacco, eliminates nicotine and greatly reduces harm related to secondhand smoke, yet still offers taste and enjoyment equivalent to regular cigarettes.

China Kangtai CEO Jinjiang Wang said, “The demand for our newly launched cactus cigarettes has exceeded our expectations. This contract underscores our capability to distribute our health-preserving cigarettes to the Chinese domestic market. The cactus cigarette market shows huge potential for growth in China. China has about 390 million smokers, accounting for 30% of global smokers. Our previously announced five-year production agreement with Jiangsu Nanhuanghai Industry & Commerce Co., Ltd. will enable us to meet cactus-based cigarette demand.”

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: [e-mail].

An investment profile on China Kangtai Cactus Biotech Inc. is available at http://www.hawkassociates.com/profile/ckgt.cfm. For an online investor relations kit, visit http://www.hawkassociates.com. For more investor-related questions, contact Susan Zhou, Hawk Associates, at 305-451-1888, e-mail: [e-mail]. To subscribe to future releases via e-mail alert, visit http://www.hawkassociates.com/about/alert/.

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.