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Kiwa Bio-Tech 2nd Quarter Revenues Increase 61.7% to $3 Million, Six Month Revenues Top $5.2 Million
Date:8/11/2008

BEIJING and CLAREMONT, Calif., Aug. 11 /Xinhua-PRNewswire-FirstCall/ -- Kiwa Bio-Tech Products Group Corporation (OTC Bulletin Board: KWBT) announced revenues for the second quarter of 2008 ended June 30 were $3,027,497 an increase of 61.7% above revenues of $1,872,647 for the second quarter of 2007. Revenues for the first six months were $5,211,768 an increase of 60% from the previous year.

The significant revenue improvement during the second quarter was due to a 61.3% increase in the bio-feed business and a doubling of the bio-fertilizer business from the same period of the previous year. Kiwa has previously announced that significant contracts for delivery of fertilizer products were signed at the end of the end of the quarter for delivery during the second half of 2008 and early 2009.

The loss from continuing operations for the three-month period ended June 30, 2008 was $631,021 (including non-cash expenses of $237,104), compared to $892,384 for the three months ended June 30, 2007. The 29.3% decrease in the net loss was partially the result of a decrease in gross profits due to increased raw material costs, a decrease in operating expenses, a decrease in interest expenses and an increase in minority interest in a subsidiary. Please refer to documents filed today with the Securities and Exchange Commission for additional information on the results for the second quarter of 2008.

Mr. Wei Li, CEO and Chairman of the Company, stated, "Kiwa reached a number of milestones during the last four months that set the path for significant rapid growth in the second half of 2008."

Highlights of the Second Quarter:

-- In May Kiwa announced that based on results of testing the Beijing Lv

Fu Long Vegetable Company would start placing orders for Kiwa

Shandong's bio-fertilizer products. Kiwa's "Di Fu Kang" fertilizer

was found to control Gray Mould Blight of cucumber fruits, increase the

number of cucumber seeds per fruit, and increases production - by more

than 20%. Kiwa's fertilizer was used by the farms supplying the Olympic

games.

-- Also in May, Kiwa announced discussions with Beijing Hai Xin Science

and Technology Co., Ltd. regarding joint product development and

marketing efforts. Hai Xin is a high technology enterprise that

specializes in mineral resource development of nonmetallic clays and

earths in order to enhance the natural functions of the materials. By

combining these earths with organic materials, improved bio-feeds and

bio-fertilizers can be manufactured for farming operations.

-- In June, Kiwa and Jiangsu Zhongdong Fertilizer Group agreed to develop

new compound bio-fertilizers to address the growing Chinese market for

compound bio-fertilizers as an alternative to chemical fertilizers.

Sales volume is expected to be $10,000,000 in next six months.

-- Also in June Kiwa received approval documents from the Ministry of

Commerce of the People's Republic of China, ratifying Kiwa Shandong to

wholesale other companies' fertilizer products, including chemical

fertilizers, complex fertilizers and compound fertilizers. Based on

applicable tax laws in China, Kiwa Shandong's new business items will

be exempt from value-added tax.

-- Kiwa Shandong has recently adjusted its product mix in cooperation

with Jiangsu Zhongdong Fertilizer Group with a focus on developing new

compound bio-fertilizers. Kiwa Shandong is also continuing to develop

new organic fertilizers to meet customer demand and is expected to

introduce new bio-fertilizer products for sale in the Chinese

fertilizer markets by the end of 2008.

-- In July Kiwa signed fertilizer sales contracts totaling RMB 150

million (over US$21 million) with Jilin Tianma Science & Technology of

Agriculture Co., Ltd. and other distributors. Delivery of products

under these contracts will be carried out from August 2008 through

March 2009.

-- Also in July, Kiwa Shandong received an Organic Products Certificate

from the China Organic Food Certification Center the specialized agency

under the Chinese Ministry of Agriculture to propel the development of

organic agriculture and to be engaged in authentication and management

of organic food and the organic food industry. Kiwa Shandong is the

second fertilizer manufacturing enterprise in Shandong Province of

China, that has acquired Organic Products Certification.

-- Kiwa entered into a joint venture with Hebei Huaxing Pharmaceuticals

Co., Ltd to produce Kiwa's AF-01 anti-viral preventative for avian flu

in May. The new firm, Hebei Kiwa Huaxing Bio-Pharmaceuticals Co., Ltd.,

will be 70% owned by Kiwa. Kiwa will now be able to aggressively pursue

commercial development of AF-01 and veterinary pharmaceuticals as the

third segment of its business. In May 2006 Kiwa, acquired AF-01 Anti-

viral Aerosol technology for veterinary medicine applications including

the exclusive production right and other related rights to produce an

anti-viral aerosol drug for use with animals from Jinan Kelongboao Bio-

Tech Co., Ltd., which is affiliated with Chinese Academy of Medical

Sciences. The AF-01 aerosol technology is a broad-spectrum anti-viral

agent with potent inhibitory and/or viricidal effects on a variety of

RNA viruses found in animals and fowls such as bird flu. Kiwa's hope is

to develop a commercialized product in the form of a spray for applying

in fowl houses and other animal holding facilities to prevent and cure

virus-caused diseases, for example, avian flu and foot-and-mouth

disease. To see an English language video related to Kiwa's AF-01 anti-

viral preventative for avian flu:

video.google.com/videoplay?docid=-7160666649865130385 or

http://www.youtube.com/watch?v=WF_9TTX_fSA ;

http://www.youtube.com/watch?v=XG0gl9okjic .

ABOUT KIWA BIO-TECH PRODUCTS GROUP CORPORATION

The Company develops, manufactures, distributes and markets innovative, cost-effective, and environmentally safe bio-technological products for agricultural and natural resources and environmental conservation. The Company's products are designed to enhance the quality of human life by increasing the value, quality and productivity of crops and decreasing the negative environmental impact of chemicals and other wastes. For more information about the Company, please review documents filed with the SEC (http://www.sec.gov) or visit the Company's website at http://www.kiwabiotech.com .

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward- looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.

For more information, please contact:

Kiwa Bio-Tech Products Group Corporation

Yvonne Wang

Tel: 626-715-5855

Email: kiwabiotech@gmail.com

Robert Schechter

Equity Communications

Tel: 212-499-6809

Email: ir4kiwa@hotmail.com CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended June 30, Six Months Ended June 30,

2008 2007 2008 2007

Net sales $ 3,027,497 $ 1,872,647 $ 5,211,768 $ 3,256,740

Cost of

sales 2,960,296 1,798,905 5,081,862 3,044,675

Gross profit 67,201 73,742 129,906 212,065

Operating expenses

Consulting

and

professional

fees 70,310 267,678 188,777 457,139

Officers'

compensation 59,431 89,427 118,463 154,469

General

and

administrative 229,147 196,499 474,517 375,523

Selling

expenses 66,127 63,642 114,581 207,267

Research

and

development 55,415 43,495 101,132 92,799

Depreciation

and

amortization 26,641 29,591 52,818 60,864

Allowance

and provision (2,439) 398 (58) 664

Total operating

expenses 504,632 690,730 1,050,230 1,348,725

Operating loss (437,431) (616,988) (920,324) (1,136,660)

Interest

expenses (203,313) (276,146) (422,860) (401,904)

Loss before

minority

interest in a

subsidiary's

deficit (640,744) (893,134) (1,343,184) (1,538,564)

Minority

interest in a

subsidiary's

deficit 9,723 750 25,968 6,921

Loss from

continuing

operations (631,021) (892,384) (1,317,216) (1,531,643)

Loss on

discontinued

operations:

Discontinued

urea entrepot

trade -

Commission

paid to a

related party -- (414,509) -- (414,509)

Net loss $ (631,021) $ (1,306,893) $ (1,317,216) $ (1,946,152)

Other

comprehensive

loss

Translation

adjustment (20,271) (37,337) (36,241) (161,131)

Comprehensive $ $

loss (651,292) $ (1,344,230) (1,353,457) $ (2,107,283)

Net (loss)

from

continuing

operations per

common share -

basic and

diluted $ (0.007) $ (0.012) $ (0.015) $ (0.021)

Net loss on

discontinued

operations per

common share -

basic and

diluted $ -- $ (0.0056) $ -- $ (0.0057)

Weighted

average number

of common

shares

outstanding-

basic and

diluted 88,211,903 74,157,432 85,651,240 72,971,896

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2008 December 31, 2007

(UNAUDITED) (AUDITED)

ASSETS

Current assets

Cash and cash equivalents $ 19,932 $ 61,073

Accounts

receivable, net of

allowance for

doubtful accounts of

$295,141 and $277,140,

respectively 689,102 470,298

Inventories 914,948 818,329

Prepaid expenses 20,897 70,460

Other current assets 136,640 67,372

Total current assets 1,781,519 1,487,532

Property, Plant and Equipment

Buildings 1,237,537 1,162,060

Machinery and equipment 703,157 660,273

Automobiles 81,100 76,154

Office equipment 107,489 93,231

Computer software 10,519 9,877

Property, plant and

equipment - total 2,139,802 2,001,595

Less: accumulated depreciation (525,626) (433,690) Property, plant and equipment - net 1,614,176 1,567,905 Construction in progress 71,631 67,262 Intangible asset - net 281,386 296,245 Deferred financing costs 88,793 129,793 Deposit to purchase proprietary

technology 126,443 126,443 Total assets $ 3,963,948 $ 3,675,180

LIABILITIES AND SHAREHOLDERS'

EQUITY (DEFICIENCY)

Current liabilities

Accounts payable $ 2,193,949 $ 1,805,043

Construction costs payable 315,616 316,902

Due to related parties - trade 233,267 177,970

Due to related parties - non-trade 555,842 551,654

Current portion of long-term

liabilities 547,535 2,889

Total current liabilities 3,846,209 2,854,458

Long-term liabilities, less

current portion

Unsecured loans payable 1,676,604 1,574,350

Bank notes payable 13,420 17,988

Long-term convertible notes payable 1,519,439 2,058,625

Less:

discount relating to

long-term convertible notes

payable (609,325) (856,308)

Long-term convertible notes

payable - net 910,114 1,202,317

Total long-term liabilities 2,600,138 2,794,655

Minority interest in a subsidiary 91,382 110,838

Shareholders' equity (deficiency)

Common stock - $0.001 par value

Authorized 200,000,000 shares.

Issued and outstanding

88,788,245 and

81,519,676 shares at June 30, 2008

and December 31, 2007 88,788 81,520

Preferred stock - $0.001 par value

Authorized 20,000,000 shares,

none issued -- --

Additional paid-in capital 9,992,766 9,217,876

Stock-based compensation reserve (224,764) (307,053)

Deficit accumulated (12,391,738) (11,074,522)

Accumulated other comprehensive

income (38,833) (2,592)

Total shareholders'

equity (deficiency) (2,573,781) (2,084,771)

Total liabilities and

stockholders' equity $ 3,963,948 $ 3,675,180


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SOURCE Kiwa Bio-Tech Products Group Corporation
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. Kiwa Bio-Tech Receives Nationally Recognized Organic Products Certification
2. Kiwa Bio-Tech Signs RMB 150 Million (US$21+ million) Fertilizer Contract
3. Kiwa Bio-Tech Receives Authorization From the Ministry of Commerce of the Peoples Republic of China to Wholesale Other Fertilizer Manufacturers Products
4. Kiwa Bio-Tech Joint Venture to Produce Preventative for Avian Flu
5. Kiwa Bio-Tech in Collaboration Discussions with Beijing Hai Xin Science and Technology Co., Ltd.
6. Kiwa Bio-Tech Passes Test & Taking Orders From Beijing Lv Fu Long Vegetable Company
7. Kiwa Bio-Tech Confirms Joint Venture Agreement With Shijiazhuang Huaxing Animal Medicine Co., Ltd.
8. Kiwa Bio-Tech 1st Quarter Revenues Increase 57.8% - $2.18 Million
9. Kiwa Bio-Tech Year-End Revenues Increase 264% - Exceed $9.1 Million
10. Kiwa Bio-Tech New Bio-Fertilizer Product Granted Initial Fertilizer Registration Certificate By Ministry of Agriculture of the PRC
11. Kiwa Bio-Tech Products Group Discusses Cooperative Research With the University of Waterloo, Canada
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