22/06/2011 (TodayIR) - China Green (Holdings) Limited, (HK:0904), ("China Green", the "Group", or the "Company"), a leading branded food and beverage company and integrated green-food provider in China, today issued a response regarding the severe floods in Hubei and Jiangxi provinces in China. In addition, the Company announced that it has performed independent third-party laboratory tests on its selected multi-grain branded beverage products, and the results showed no evidence of DEHP.

Since May 2011, many provinces in eastern and southern China have suffered from drought. However, starting in June, regions along the Yangtze River, including most of the drought-stricken areas, including Hubei, Jiangsu and Anhui provinces, have experienced heavy rainfall and subsequent flooding. Steady rainfall in Jiangxi, Hubei, Hunan, Guizhou and Zhejiang provinces has also led to severe flooding after days of heavy downpour.

"Given increasing concern about the flood situation in China, we feel it is necessary to assure our customers and investors that our crops in Hubei and Jiangxi provinces have not been materially impacted. At the moment, sweet corn is the primary crop in our Hubei and Jiangxi cultivation bases, and these crops are scheduled for harvest in mid-July. Owing to the efficient drainage systems in our bases, we are able to discharge floodwater effectively and efficiently, thus minimizing the adverse impact on our crops," commented Mr. Evan Wong, Chief Financial Officer of China Green. "We also reached out to our major contract farmers who supply grain raw materials for our beverage products and can confirm that there has been no major disruption to supply," he added.

In mid-May, Taiwan's health authority announced that a food-additive supplier had illegally added the toxic plasticizer DEHP to its products as a substitute for more expensive palm oil, in order to increase profits. The DEHP-contaminated additives are believed to have been sold to hundreds of food and beverage producers in Taiwan. Since the outbreak, officials and experts with the quality-supervision authorities and institutions from both the Chinese mainland and Taiwan have called for a concerted effort to ensure food safety on both sides of the Strait. In response to the scandal, China Green engaged SGS-CSTC Standards Technical Services Co., Ltd., an independent third-party laboratory located in PRC, to carry out tests on its multi-grain branded beverage products, including such flavors as green bean, black bean, oats, fruity sweet corn, red bean, walnut, peanut and others. All tests reveal no contamination by DEHP.

"We adhere to the highest standards of hygiene and food safety, since quality is the foundation of our business. Since the outbreak of the DEHP scandal, we have diligently worked with independent third-party laboratories to test our multi-grain branded beverage products, and I am pleased to reveal that the products are free of DEHP contamination. We are pleased with the results and will continue to execute stringent measures to provide our consumers with high-quality products. Additionally, we are in the process of performing a thorough and extensive audit of China Green’s accounts for the fiscal year ended April 30, 2011 and will announce its annual results by the end of July 2011" concluded Mr. Wong.