China Kangtai Cactus Announces Consumer Launch of New Low Nicotine Cigarette

Sheng Cao New Low-Nicotine Cigarette Receives CDC Approval

HARBIN, China--()--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 its Sheng Cao brand of new low-nicotine cigarettes has been approved for sale to consumers by the Chinese Center for Disease Control and Prevention (China CDC).

The Company submitted the new cigarette for China CDC approval earlier this year. After a thorough analysis, which included quality control and toxicity tests, the CDC approved the Sheng Cao new low-nicotine cigarette for consumer use this year. This new cigarette is designed to contain lower nicotine and tar than most competing brands. The taste is very smooth and suitable for regular smokers who want to reduce their nicotine intake.

The Company said the new cigarette, which will be produced in Macau, will initially be introduced in Guangdong Province. The new cigarette is expected to generate approximately RMB 22 million (approximately US $3.4 million) in sales in 2011. Management said that upon successful initial market roll out, the Company expects to expand its marketing efforts to additional locations before the end of the year.

A photo of the Sheng Cao new low-nicotine cigarette is attached.

China Kangtai CEO Jinjiang Wang said, “This new cigarette demonstrates our capabilities and the quality of our cactus cigarettes, which are already widely accepted by consumers. Last year revenue generated from cigarette sales was $2.9 million. In the first quarter of 2011, revenue from cigarette sales was RMB 8.7 million (approximately US $1.3 million). We believe we have the lead in an important market niche that we are uniquely able to fill because of our ability to blend cactus with tobacco in a way that provides consumers the satisfaction that they expect from a cigarette while lowering the nicotine content. We anticipate this will be an important addition to our cactus cigarette product-line. The concept of a lower-nicotine cigarette is certain to attract more customers and we intend to heavily promote the special quality of these cigarettes to the market. We believe this will further broaden our market share and the outlook for 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.

China Kangtai’s online investor kit, including an investment profile, press releases, current price quotes, stock charts and more is available at http://www.hawkassociates.com/profile/ckgt.cfm. 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.

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Contacts

For China Kangtai Cactus Biotech Inc.
Hawk Associates
Frank Hawkins or Amy Lin, 305-451-1888
kangtai@hawkassociates.com

Contacts

For China Kangtai Cactus Biotech Inc.
Hawk Associates
Frank Hawkins or Amy Lin, 305-451-1888
kangtai@hawkassociates.com