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Tiens Biotech Group (USA) Reports First Quarter Results
Date:5/17/2010

China for the first quarter of 2009 was lower than any other quarter in 2009.

Results for the first quarter of 2010 reflect a decrease in international revenue to $4.6 million, from $15.5 million for the same period in 2009 and was lower than the 2009 quarterly average revenue of $8.7 million. Management believes that uneven bulk ordering significantly contributed to the decrease as some international distributors purchase products only once or twice during each year. The decrease is also due to declined sales to Indonesia and Vietnam. In the first two quarters of 2009, customers in Indonesia and Vietnam significantly stocked up on the Company's products, which depressed subsequent sales in the latter half of 2009 and through the first quarter of 2010. Sales declines in these regions also reflect the recent adjustment by the Company's international distributors of the direct selling rules for customers in these regions, which is expected to increase long-term sales but negatively affect near-term sales.

Additionally, during 2008, China's Administration of Quality Supervision, Inspection and Quarantine ("AQSIQ") carried out a national campaign against unsafe food and substandard products, which brought on a general slow-down and backlog of export clearances for Chinese food products. Upon the lifting of the regulations, overseas affiliated companies began to purchase more products, thereby increasing sales in the first quarter of 2009.

Other Highlights

Cost of sales for the first quarter of 2010 were $3.4 million, compared to '/>"/>

SOURCE Tiens Biotech Group (USA), Inc.
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