Feature News

TIANJIN, China, Nov. 5 /PRNewswire-Asia-FirstCall/ -- Yayi International Inc., (OTC Bulletin Board: YYIN) ("Yayi International" or "the Company"), the leading producer and distributor of premium goat milk formula products for infants, toddlers, and adults throughout the People's Republic of China, today announced that it broke ground on a new deep-processing facility in Shaanxi Province.

The new facility is designed to become the largest goat milk production base in China. Once put into production at the end of 2010, the new facility will increase the Company's existing production capacity in Shaanxi Province by 400 percent. The new plant, which occupies an area of 79,920 square meters, is based in Weinan, Shaanxi Province in northwestern China, where dairy goats are abundant and of optimal breed for milk production. The Company expects the new facility to be funded using the proceeds of the $15 million private placement raised from SAIF Partners III L.P. in June 2009 and cash flow from operations.

"We are delighted to take this significant step for expanding our production capacity which we expect will strengthen our leadership position in China's goat milk industry," said Ms. Li LIU, Chief Executive Officer of Yayi International. "We are optimistic about the demand for our goat milk products as lactose intolerance and dairy allergies are common in China and goat milk may be more easily digested by many Chinese who suffer from lactose intolerance as well as those who are sensitive to cow milk products. Moreover, the general interest for goat milk has increased following the 2008 milk scandal, when melamine was found in various cow milk-based infant formula products in China."

About Yayi International

Yayi International is the first mover and the leading producer and distributor of premium goat milk formula products for infants, toddlers and adults, goat milk tablets, and goat foremilk powder throughout China. Its current formula product lines are targeted at the premium market segment and health-conscious consumers. The Company's distribution network comprises of approximately 3,600 retail points including infant-maternity store chains, supermarkets, and drug stores as well as catalogue sales across China.

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.

    For more information, please contact:

    Company Contact:
     Ms. Tong Li, Chief Financial Officer
     Email: litong9955@yahoo.com.cn
     Tel:   +86-22-5869-1668

    Investor Relations Contact:
     Mr. Crocker Coulson, President
     Email: crocker.coulson@ccgir.com
     Tel:   +1-646-213-1915 (NY office)