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Stock in Focus: Sunwin International Neutraceuticals

Company announced exclusive distribution agreement with Hunan Fuhui Flavors to distribute Sunwin's stevia extract in China

Sunwin International Neutraceuticals, Inc. announced it has signed an exclusive distribution agreement with Hunan Fuhui Flavors Co. Ltd. to distribute Sunwin's stevia extract within Hunan province in China. The company is one of the world's leading producers of all-natural, zero-calorie stevia in China and a leader in the production and distribution of Chinese herbs and veterinary medicines.

The press release states that under the terms of the one year agreement, Sunwin will provide marketing support and technical staff to support Hunan Fuhui's sales efforts within the province. Additionally, Hunan Fuihui must distribute at least 50 tons of stevia extract within the first year for this agreement to be subject to renewal. Hunan Fuhui is an experienced distributor based in the Hunan province, located in southern China and home to more than 64 million people.

Commenting on the agreement, Chairman Laiwang Zhang stated, "We are pleased to secure a strong partner in Hunan Fuhui, whose expertise as a regional distributor makes them an ideal candidate to increase Sunwin's presence in Hunan province where stevia is commonly used as a natural sweetener. We have recently completed a number of expansion programs to increase our total stevia production capacity and we are particularly excited to expand our marketing efforts in this important domestic market. We look forward to this new partnership as we continue pursue opportunities both in China and throughout the globe to expand revenue and profits in our stevia operations."

The company also reported last month that has completed the conversion of Qufu Shengren's production facilities to produce high grade stevia. The newly converted facilities add 250 metric tons of production capacity for high grade stevia extract up to rebaudioside A 98, bringing Sunwin's total high grade stevia annual production capacity to 500 metric tons.

Qufu Shengren, founded in December 2003, manufactured and distributed pharmaceutical products throughout China. In March 2007, Qufu Shengren received a Certificate of Good Manufacturing Practices ("GMP Certificate") from State Food and Drug Administration in China for its pharmaceutical products. In April 2009, Sunwin International acquired 100% interest of Qufu Shengren and began the conversion of the facilities to produce high grade stevia extracts. The completion of this conversion comes at a time when Sunwin is poised to enter its stevia extracts for use as a sweetener in the U.S. food and beverage industry with the completion of the process for U.S. Food and Drug Administration ("FDA") self-affirmed GRAS status for stevia extracts produced by Sunwin.

The stock closed yesterday at around Twenty Three cents a share a share.

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