Yayi International Develops Key National Distributor Partnerships

TIANJIN, China--(BUSINESS WIRE)--Yayi International Inc., (OTC Bulletin Board: YYIN) ("Yayi International" or "the Company"), the first mover and a leading producer and distributor of premium goat milk formula products for infants, toddlers, young children, and adults in the People’s Republic of China (“China”), today announced that the Company has added a key national distributor that strategically positions it for strong sales growth.

“In addition, this development demonstrates the solid trust these distributors have in the safety and quality of our premium goat milk products as well as their confidence in the market potential of the goat milk segment amid renewed concerns about the safety of cow milk formula among Chinese consumers.”

Eastern Hua-tong Group Corp. (“Eastern Hua-tong”), China’s most renowned distributor of professional dairy formula, has approached Yayi International to form a distribution partnership. The Shenzhen-based distributor has a successful track record of distributing dairy brands of leading international infant formula manufacturers, such as Mead Johnson, Wyeth and Abbott. Yayi International expects the cooperation with Eastern Hua-tong will help the Company further expand sales in South China initially by facilitating entry to both supermarkets and infant-maternity stores.

In addition, Yayi International has renewed its contract with Beijing CP Commercial & Trading Co., Ltd. (“Beijing CP”), China’s largest national food distributor in terms of sales. The renewal is expected to increase the Company’s market penetration in Hebei province and the greater Beijing area by adding more supermarkets, including multinational retail channels such as Wal-Mart and Carrefour, into its regional sales network.

"We are excited to have developed these two high-profile distribution partnerships as they have important strategic implications for our growth prospects in the goat milk market," said Ms. Li Liu, Chief Executive Officer of Yayi International. "In addition, this development demonstrates the solid trust these distributors have in the safety and quality of our premium goat milk products as well as their confidence in the market potential of the goat milk segment amid renewed concerns about the safety of cow milk formula among Chinese consumers.”

About Yayi International

Yayi International is the first mover and a leading producer and distributor of premium goat milk formula products for infants, toddlers, young children and adults in China. Its current formula product lines are targeted at the premium market segment and health-conscious consumers. The Company has a vertically-integrated production process. It sources raw goat milk from its proprietary dairy farms and neighboring dairy goat farmers on a long-term contract basis in milk collection centers, which ensures high quality control of its products. The Company's distribution network comprises of a nationwide footprint across China in 23 provinces and municipalities including domestic and multinational supermarkets, infant-maternity store chains, and drug stores as well as catalogue sales and a dedicated online store at Taobao.com.

About Eastern Hua-tong

Eastern Hua-tong, founded in 1988, is headquartered in Shenzhen, China. The company distributes approximately 160 dairy and household brands for multinational and domestic companies in China, including Mead Johnson, Wyeth, Abbott, and Johnson & Johnson. With 18 subsidiaries in South, East, North and Southwest China, the company has an extensive sales network that reaches hypermarkets, supermarkets and other retail stores.

About Beijing CP

Beijing CP, founded in 2002, is a subsidiary of Hong Kong-listed Beijing Jingkelong Company Limited. The company has partnerships with over 300 multinational and domestic companies and is the major distributor of over 40 companies in the greater Beijing area. With five subsidiaries in North China, the company has deployed its sales network through more than 140 retailers, hundreds of convenience stores as well as hotels and restaurants in Beijing and its surrounding regions.

Forward-looking Statements:

This press release contains certain statements that may include 'forward-looking statements'. All statements other than statements of historical fact included herein are 'forward-looking statements'. These forward looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.