-- Third quarter FY2011 net revenue and net income rose 24.2% and 34.9% year-over-year, respectively

-- Affirms FY 2011 Guidance

Feb. 14, 2011 (PR Newswire) --

Source: PR Newswire (February 14, 2011 - 6:30 AM EST)

http://www.zoominto.com/software/ieplugi...http://";

    First Quarter Fiscal Year 2011 Highlights and Recent Events
    -- Net sales increased 2.9% year-over-year to $9.6 million
    -- Gross profit increased 5.0% year-over-year to $4.1 million, with gross
       margin of 42.8%
    -- Operating earnings rose 13.0% year-over-year to $2.4 million, with
       operating margin of 25.2%
    -- Net income was $1.8 million, or $0.04 per diluted share
    -- Successfully completed technological upgrades to its fruit concentrate
       production lines at its Mudanjiang and Daqing facilities.
    -- Commenced its fiscal year 2011 production season in July 2010
    -- Started production of its new blackcurrant and seabuckthorn concentrate
       juice and glazed fruits products in July 2010

"Historically, the first fiscal quarter is the slowest as we mainly engage in selling our remaining inventory from the prior year's production season. This explains our modest growth in net sales, gross margin and net income during the first fiscal quarter of 2011. We kicked off our new production season in late July and will add some new products to our mix this year," commented Mr. Changjun Yu, Chairman and CEO of China Nutrifruit. "Driven by increasing market demand for our glazed and concentrated juice products, we received repeat orders from our existing distributors at higher volumes, improving our operational efficiency and enhancing our profitability."

First Quarter Fiscal Year 2011 Results

Net sales for the first quarter of fiscal year 2011 increased 2.9% to $9.6 million, as compared to $9.4 million in the same quarter of fiscal 2010. The growth in sales was attributable to increased demand and resulting sales of the Company's glazed fruits and concentrate juice products as well as a 21.0% year-over-year increase in average sales price of crab apple concentrate products.

In the first quarter of fiscal year 2011, net sales from concentrated juice products, which accounted for 52.2% of total net sales, were $5.0 million, up 38.8% from $3.6 million, or 38.8% of total net sales, in the same quarter of 2010. Net sales from glazed fruit products increased 68.3% to $1.7 million, contributing 18.2% of the net sales, as compared to $1.0 million, or 11.1% of total net sales in the prior year. The significant increase in sales of glazed fruit was due to increased sales of the Company's new blueberry glazed fruit product launched in December 2009. Sales of nectar and concentrate pulp products were $0.6 million and $2.3 million, respectively down from $0.8 million and $2.8 million, respectively in the same period of fiscal 2010. The Company reported no revenue from the beverage segment as it discontinued beverage operation in March 2010, following its strategic decision to cease beverage production and focus on its high-margin premium products.

Gross profit for the first quarter of fiscal year 2011 increased 5.0% to $4.1 million, from $3.9 million for the same period a year ago. Gross margin was 42.8% for the first quarter of fiscal year 2011, up slightly from 41.9% in the year ago period. The increase in gross margin was mainly due to the Company's strategic decision to cease production of relatively low-margin beverage products in March 2010 and increased average selling price of crab apple concentrate juice as mentioned above. As a result, the gross margin of concentrate juice products increased 9.1 percentage points to 45.3% from 36.2% in the first quarter of fiscal year 2010. The gross margin of glazed fruit products declined to 49.8% from 65.5% in the same period last fiscal quarter. The decline was primarily because the Company used frozen blueberries during the non-harvest season to process new blueberry glazed fruit in order to maximize the utilization rate of its glazed fruit production line and increase sales volume to distributors. The cost of frozen blueberries is relatively higher than fresh blueberries.

In the first quarter of fiscal year 2011, selling, general, and administrative expenses were $1.7 million, down from $1.8 million in the same period last year. Selling expenses were $0.6 million, or 6.1% of net sales, down 29.5% compared to $0.8 million, or 8.9% of net sales, in the first quarter of fiscal year 2010. The decrease was due to the Company's well established relationship with existing distributors who placed repeated orders with higher volume, resulting in lower sales related travel expenses. In addition, the Company incurred no selling expenses related to beverage products in the first quarter of fiscal year 2011.

General and administrative ("G&A") expenses were $1.1 million, or 11.5% of net sales, up 17.2% from $0.9 million, or 10.1% of net sales a year ago. The increase was primarily due to the increase in salaries and benefits of staff and support personnel, depreciation expenses incurred in connection with its new glazed fruit production line launched in December 2009.

Operating earnings in the first quarter of fiscal year 2011 were $2.4 million compared to $2.2 million, in the comparable period last fiscal year. Operating margin for the quarter was 25.2%, as compared to 23.0% a year ago.

Provision for income taxes was $0.7 million compared to $0.6 million a year ago.

Net income in the first quarter of fiscal year 2011 was $1.8 million, or $0.04 per diluted share, up 14.0% as compared to $1.6 million, or 0.04 per diluted share, a year ago. The calculation of diluted earnings per share for the first quarter of fiscal 2011 is based on 36.8 million weighted average shares outstanding compared to 36.1 million in the same quarter of fiscal 2010.

Financial Condition

As of June 30, 2010, China Nutrifruit had $26.7 million in cash and cash equivalents, $2.5 million in current liabilities with no long term debt and working capital of $46.2 million. Shareholders' equity was $67.6 million as of June 30, 2010, up from $65.8 million as of March 31, 2010. Net cash used in operating activities was $5.8 million, which reflects a $13.7 million advance payment for the construction of its new fruit and vegetable powder production facility in Daqing, which is scheduled to begin operations in September 2010. The Company recorded approximately $3.5 million as capital expenditures in relation to the recent technological upgrades of its concentrate juice production lines at its Daqing and Mu Dan Jiang facilities.

Business Outlook

China Nutrifruit recently completed installation of additional equipment and implemented advanced production techniques at its facilities in Daqing and Mu Dan Jiang. The Company also made systematic upgrades to its existing equipment, replacing inefficient machinery to improve performance and productivity. As a result of the technological upgrades, the Company expects to benefit from improved productivity and maximize its resource efficiency, favorably affecting gross margins.

In July 2010, the Company also commenced production of its new blackcurrant and seabuckthorn concentrate juice and glazed fruit products. For fiscal year 2011, China Nutrifruit plans to engage in limited production of the newly developed concentrate juice and glazed fruit products and will ramp up production based on market feedback.

The Company is on track to begin trial production of its new fruit and vegetable powder products in September 2010 at its new fruit and vegetable powder production facility in Daqing, with an annual capacity of 10,000 tons. Management expects this new segment to favorably impact revenue and net income growth in fiscal year 2011.

"We started fiscal 2011 on a positive note with growth initiatives including new product introductions and technological and process improvements at our facilities in advance of our fiscal year 2011 production season," said Mr. Yu. "We are excited about the newly developed blackcurrant and seabuckthorn concentrate juice and glazed fruit products and are optimistic about their market demand. Our production team is gearing up to commence production of our new fruit and vegetable powder products in September 2010 as per schedule. We plan to optimally leverage our well-established distribution network to market our new powder products and hope to begin selling our products overseas."

The Company affirms its financial guidance of $90-$95 million in revenue and $22-$23 million in net income for fiscal year 2011.

Conference Call Information

Management will conduct a conference call at 10:00 a.m. Eastern Time on Monday, August 16, 2010 to discuss its first quarter fiscal 2011 results. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 877-380-4607. International callers should dial +1-702-928-6995. The conference ID number for the call is 93533081. If you are unable to participate in the call at this time, a replay will be available on Monday, August 16, 2010 at 11:00 a.m. Eastern Time, through Monday, August 30, 2010. To access the replay, dial 800-642-1687. International callers should dial +1-706-645-9291. The conference ID number for the replay is 93533081.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 20 Provinces in China. For more information, please visit http://www.chinanutrifru... .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our new products, new fruit and vegetable powder manufacturing facility, technological upgrades to production lines and their expected impacts on the Company's business and financial performance, expected financial performance in FY2011 and strategic and operational plans, our expectations regarding the market for our existing products and new products, our expectations regarding the continued growth of the specialty fruit market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended March 31, 2009, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

                       -- Financial Tables Follow --



               CHINA NUTRIFRUIT GROUP Limited AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                          (Stated in US Dollars)

                                                     Three months ended
                                                           June 30,
                                                     2010            2009

    Net sales                                     $9,628,256      $9,358,205

    Cost of sales                                 (5,509,124)     (5,436,273)

    Gross profit                                   4,119,132       3,921,932

    Selling expenses                                (584,508)       (828,749)
    General and administrative expenses           (1,105,724)       (943,104)

    Operating earnings                             2,428,900       2,150,079

    Other income (expenses)
    Interest expense                                      --              --
    Other income                                      30,472           7,744
    Total other income (expenses)                     30,472           7,744

    Earnings before noncontrolling
     interests and income taxes                    2,459,372       2,157,823

    Provision for income taxes                      (665,866)       (585,142)

    Earnings before noncontrolling
     interests                                     1,793,506       1,572,681

    Net earnings                                   1,793,506       1,572,681
    Other comprehensive income
    Foreign currency translation                     (68,850)          2,308
    Comprehensive income                          $1,724,656      $1,574,989


    Earnings per share
    Basic                                              $0.04           $0.04

    Diluted                                            $0.04           $0.04

    Weighted average number of
     common stock outstanding
    Basic                                         36,670,809      36,125,754
    Diluted                                       36,774,433      36,125,754




                CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES
               CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                              (Stated in US Dollars)

                                                 June 30,         March 31,
                                                   2010              2010
    ASSETS
    Current assets:
    Cash and cash equivalents                  $26,660,974       $35,994,443
    Proceeds from private placement held in
     escrow account                                931,630           931,630
    Trade receivables, net of allowance          7,063,910        11,047,846
    Inventories, net                               271,888         4,179,910
    Prepayment and deposits                     13,701,308                --
    Other current assets                            69,176           116,196
    Total current assets                        48,698,886        52,270,025
    Property and equipment, net                 16,617,700        17,066,907
    Construction in progress                     3,503,536                --
    Deferred tax assets                          1,029,851         1,068,878
    Land use rights, net                           184,892           185,686
    TOTAL ASSETS                               $70,034,865       $70,591,496

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
    Other payables and accrued expenses         $1,925,373        $2,379,246
    Trade payables                                  58,309            87,954
    Income taxes payable                           498,744         2,296,513
    Total current liabilities                    2,482,426         4,763,713
    TOTAL LIABILITIES                            2,482,426         4,763,713

    Commitments and Contingencies

    Shareholders' equity
    Preferred stock
    Authorized: 5,000,000 shares, par value
     $0.001
    Issued and outstanding: 350,559 shares
     as at June 30, 2010; (365,109 as at
     March 31, 2010)                                   350               365
    Common stock
    Authorized: 120,000,000 shares, par
     value $0.001
    Issued and outstanding: 36,718,772
     shares as at June 30, 2010; (36,573,272
     shares as at March 31, 2010)                   36,719            36,573
    Additional paid-in-capital                  36,492,744        36,492,875
    Statutory reserves - restricted              4,564,345         4,564,345
    Accumulated other comprehensive income         371,864           440,714
    Retained earnings                           26,086,417        24,292,911
    TOTAL SHAREHOLDERS' EQUITY                  67,552,439        65,827,783
    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                    $70,034,865       $70,591,496



                  CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                (Stated in US Dollars)

                                                      Three months ended
                                                            June 30,
                                                      2010           2009
    Operating activities:
    Net earnings                                   $2,459,372     $1,572,681
       Adjustments to reconcile net
        earnings to net cash used in
        operating activities:
        Depreciation and amortization                 428,358        356,052
        Benefit for deferred income taxes              39,027         59,453
       Changes in operating assets and
        liabilities:
        Trade receivables, net                      3,972,796      7,579,205
        Inventories                                 3,903,808      2,964,635
        Prepayment and deposits                   (13,699,845)            --
        Other current assets                           45,526        271,591
        Trade payables                                (29,557)       (75,212)
        Income taxes payable                       (2,422,292)      (892,322)
        Other payables and accrued expenses          (451,846)      (742,238)
    Net cash (used in) provided by
     operating activities                          (5,793,679)    11,093,845

    Investing activities:
    Addition of construction in progress           (3,503,536)            --
    Net cash used in investing activities          (3,503,536)            --

    (Decrease) Increase in cash and cash
     equivalents                                   (9,297,215)    11,093,845

    Effect of exchange rate on cash and
     cash equivalents                                 (36,254)        (7,331)

    Cash and cash equivalents at beginning
     of the period                                 35,994,443      4,768,542

    Cash and cash equivalents and proceeds
     from private placement held in escrow
     account at end of the period                 $26,660,974    $15,855,056

    Supplemental disclosure of cash flows
     information:
    Cash paid for:
    Income taxes                                   $2,422,292     $5,634,883


    For more information, please contact:

    Company Contact:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifruit.com

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

     Elaine Ketchmere, Partner
     Tel:   +1-310-954-1345 (LA office)

    Fourth Quarter Fiscal Year 2010 Highlights
    -- Record net sales increased 26.5% year-over-year to $26.4 million
    -- Gross profit increased 42.6% year-over-year to $11.5 million, with
       gross margin of 43.6%
    -- Operating earnings was $8.9 million, with operating margin of 33.5%
    -- Net income was $6.7 million, or $0.17 per diluted share
    -- In March 2010, the Company ceased production of its beverage products
       to focus on core high-margin products

"We are very pleased to have finished fiscal year 2010 with exceptional top line and bottom line performance, highlighted by full year operating margins of over 35% and net income and EPS that exceeded expectations. Our performance this year was driven by continued strong consumer demand for the premium fruit and fruit juice products due to stronger domestic consumption and a growing focus on healthy living," commented Mr. Changjun Yu, Chairman of China Nutrifruit. "I am very pleased to note that China Nutrifruit generated $21.7 million in cash from operations and ended the fiscal year with $35.6 million in cash and no debt, providing us with the flexibility to continue to finance significant expansion using internal resources. The new capacity we added in advance of our production season last year contributed to a strong second half, and ongoing focus on higher margin product categories should put us on track for sustainable earnings growth."

Fourth Quarter Fiscal Year 2010 Results

Net sales for the fourth quarter of fiscal year 2010 increased 26.5% to $26.4 million, as compared to $20.9 million in the same quarter of fiscal 2009. The strong growth in sales was attributable to the increase in sales volume driven by the Chinese Lunar New Year festival, strong market demand and the positive effect of the Chinese government's economic stimulus package. During the fourth quarter, net sales from concentrated juice products, which accounted for 55.2% of total net sales, were $14.6 million. Net sales from glazed fruit reached $6.4 million, contributing 24.3% of the net sales during the quarter compared to 6.3% in the prior year primarily due to increased sales of the Company's new blueberry glazed fruit product.

Gross profit for the fourth quarter of fiscal year 2010 increased 42.6% to $11.5 million, from $8.1 million for the same period a year ago. Gross margin was 43.6% for the fourth quarter of fiscal year 2010, up significantly from 38.7% in the year ago period. The increase in gross margin was mainly due to the recovery of the international apple concentrate juice price and increase in raspberry concentrate juice selling price. The gross margin of concentrate juice increased 11.8% from 36.7% in the fourth quarter of fiscal year 2009 to 43.4% in the fourth quarter of fiscal year 2010.

In the fourth quarter of fiscal year 2010, selling, general, and administrative expenses were $2.7 million, down from $12.0 million in the same period last year. Selling expenses were $1.0 million, or 3.6% of net sales, compared to $0.9 million, or 4.4% of net sales, in the fourth quarter of fiscal 2009. General and administrative ("G&A") expenses were $1.7 million, down 84.5% from $11.1 million a year ago, which included non-cash compensation of $9.5 million related to the release of 2.8 million shares from escrow in the fiscal fourth quarter of 2009 related to achieving the 2009 net income make good target associated with the Company's August 2008 private placement. The Company achieved its net income make good target in fiscal 2010, but was not required to record a similar expense in fiscal 2010 due to changes in fair value accounting under ASU No. 2010-05 issued by the FASB in January 2010.

Operating earnings in the fourth quarter of fiscal year 2010 were $8.9 million compared to operating loss of $3.9 million, in the comparable period last year. Excluding the non-cash compensation expense related to achieving the make good target associated with the August 2008 private placement, operating earnings for the quarter increased 57.6% from non-GAAP operating earnings of $5.6 million in the same period of fiscal 2009.

The Company recorded other income of $312,069 in the fourth quarter of fiscal 2010, primarily related to the gain on disposal of its beverage production line.

Provision for income taxes was $2.5 million compared to $1.3 million a year ago.

Net income in the fourth quarter of fiscal year 2010 was $6.7 million, or $0.17 per diluted share compared to net loss of $5.4 million, or a loss of 0.16 per diluted share, a year ago. Excluding the non-cash compensation expenses, net income for the quarter rose 62.3% from non-GAAP net income of $4.1 million in the same quarter of fiscal year 2009. The calculation of diluted earnings per share for the fourth quarter of fiscal 2010 is based on 40.0 million weighted average shares outstanding compared to 33.5 million in the same quarter of fiscal 2009.

Full Year Financial Results

For fiscal year ended March 31, 2010, net sales were $72.9 million, up 29.2% from $56.4 million in fiscal 2009, primarily due to the increased sales volume of the Company's glazed fruit, concentrated juice and concentrated pulp products. Net sales from glazed fruit, which accounted for 22.8% of fiscal 2010 total net sales, increased to $16.6 million, up 169.5% from $6.2 million the prior year. Net sales from concentrated juice, which accounted for 47.5% of fiscal 2010 total net sales, were $34.7 million, up 19.9% from $28.9 million in fiscal 2009 while sales from concentrate pulp grew to $9.4 million, up 36.8% from $6.9 million in fiscal 2009. Among the Company's concentrated juice products, sales of golden berry and blueberry surged 26.7% and 31.3% to $9.3 million and $10.9 million, respectively. Net sales from nectar, which accounted for 9.5% of net sales, was $7.0 million, down 6.3% from $7.4 million in fiscal 2009. Net sales of fresh fruits accounted for 3.0% of net sales and totaled $2.2 million, down 9.0% from $2.4 million in the last fiscal year. Sales from beverages accounted for 4.2% and 8.2% of total revenue in fiscal year 2010 and 2009, respectively. In March 2010, the Company ceased the production of beverages and focus on its core high-margin products.

Gross profit increased 35.0% to $33.3 million from $24.6 million a year ago. Gross margin was 45.6% in fiscal year 2010 compared to gross margin of 43.7% in 2009. The increase was mainly because the Company recorded increased sales volume of high-margin glazed fruit products relative to fiscal 2009. Net income for the fiscal year ended March 31, 2010 was $19.2 million, or $0.51 per diluted share, compared to $4.5 million, or $0.14 per diluted share in fiscal 2009. Excluding the impact of the non-cash compensation expenses, non-GAAP net income for fiscal 2009 was $14.0 million, or $0.42 per diluted share. The calculation of diluted earnings per share for fiscal 2010 is based on 38.0 million weighted average shares outstanding compared to 33.5 million in fiscal 2009.

Financial Condition

As of March 31, 2010, China Nutrifruit had $36.0 million in cash and cash equivalents, $4.8 million in total liabilities with no long-term debt and working capital of $47.5 million. Shareholders' equity was $65.8 million as of March 31, 2010, compared to $26.8 million as of March 31, 2009. For the year ended March 31, 2010, the Company generated $21.7 million in cash flow from operating activities.

Business Outlook

China Nutrifruit plans to begin trial production by September of 2010 at its new fruit and vegetable powder production facility in Daqing, with an annual capacity of 10,000 tons. The Company expects to ramp up to large-scale production in October 2010 based on a large number of anticipated customer orders.

China Nutrifruit is currently upgrading all of its fruit concentrate production lines at the Company's facilities in Daqing and Mu Dan Jiang, which have a total fruit concentrate annual production capacity of 9,960 tons. The upgrade will include purchase of additional equipment and implementation of advanced production techniques, resulting in more efficient use of raw materials that is expected to have a favorable impact on gross margins. The upgrades are scheduled to be completed before the production season begins in July 2010 and any improvements will be reflected in financial results for fiscal 2011.

The Company affirms previously issued fiscal 2011 guidance. For fiscal year 2011, the Company expects approximately $90-$95 million in revenue and net income of approximately $22-$23 million.

"The Chinese economy, standards of living and disposable income continue to improve, leading to greater health awareness among the population. As a result, we expect strong consumer spending to drive demand for specialty fruit products in the year ahead," said Mr. Yu. "In addition, we are very excited about our entry into the new, high growth segment for fruit and vegetable powders, as these are experiencing rising demand from a variety of downstream processed food companies who are currently largely served by more expensive foreign suppliers. This expansion leverages our installed equipment base, expertise and distribution channels and has the potential to moderate the seasonality of our business over time. Based on the market feedback from distributors and end customers, we are confident that our new fruit and vegetable powder business will make a major contribution to our financial results in the year ahead and provide an attractive return on investment."

Conference Call Information

Management will conduct a conference call at 10:00 a.m. Eastern Time on Monday, June 28, 2010 to discuss its fourth fiscal quarter and fiscal 2010 results. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 877-380-4607. International callers should dial +1-702-928-6995. The conference ID number for the call is 83092426. If you are unable to participate in the call at this time, a replay will be available on Monday, June 28, 2010 at 11:00 a.m. Eastern Time, through Monday, July 12, 2010. To access the replay, dial 800-642-1687. International callers should dial +1-706-645-9291. The conference ID number for the replay is 83092426.

Use of Non GAAP Financial Information

During the quarter ended March 31, 2009, the Company recorded $9.5 million in non-cash compensation expense related the Company's August 2008 private placement. The Company has presented non-GAAP operating income, net income and diluted earnings per share excluding the impact of this expense on its financial results for the three months and fiscal year ended December 31, 2009. The Company's management believes that these non-GAAP measures provide investors with a better understanding of how the results related to the Company's historical performance. The additional non-GAAP information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP financial information that the Company provides also may differ from the non-GAAP information provided by other companies. Management believes that these non-GAAP financial measures are useful to investors because they exclude non-cash expenses that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting, and performance measurement, as these measures provide a consistent method of comparison to historical periods. As a result, the provision of these non-GAAP measures allows investors to evaluate the Company's performance using the same methodology and information as that used by the Company's management. Moreover, management believes that these non-GAAP measures reflect the essential operating activities of the Company. Non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the non-GAAP financial measure. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded. A reconciliation of each non-GAAP measure to the nearest GAAP measure appears in a financial table at the end of this press release.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 20 Provinces in China. For more information, please visit http://www.chinanutrifru... .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such statements include, among others, those concerning our projections for the new fruit and vegetable powder manufacturing facility, expected financial performance in FY2011 and strategic and operational plans, our expectations regarding the market for our products, our expectations regarding the continued growth of the specialty fruit market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended March 31, 2009, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

                             - Financial Tables Follow -



    CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    FOR THE YEARS ENDED MARCH 31,

                                                            Three months
                            FY 2010      FY 2009           ended March 31,
                                                          2010        2009

    Net sales             $72,916,955  $56,418,837   $26,416,955 $20,885,771
    Cost of sales         (39,655,534) (31,777,733)  (14,896,453)(12,807,967)
    Gross profit           33,261,421   24,641,104     11,520513   8,077,804
    Selling expenses       (3,547,236)  (2,929,881)     (946,617)   (924,981)
    General and
     administrative
     expenses              (3,976,627) (12,408,747)   (1,716,089)(11,052,993)
    Operating earnings     25,737,558    9,302,476     8,857,807  (3,900,170)
    Other income
     (expenses)
    Interest expense               --     (480,201)           --    (174,241)
    Other income               70,233       31,730       $21,662     $19,135
    Gain on disposal of
     property and
     equipment                290,407           --       290,407          --
    Total other income
     (expenses)               360,640     (448,471)      312,609    (193,376)
    Earnings before
     noncontrolling
     interests and income
     taxes                 26,098,198    8,854,005     9,169,876  (4,055,276)
    Provision for income
     taxes                 (6,849,438)  (4,127,577)   (2,470,513) (1,336,797)
    Earnings before
     noncontrolling
     interests             19,248,760    4,726,428     6,699,363  (5,392,073)
    Noncontrolling
     interests                     --     (209,308)           --          --
    Net earnings           19,248,760    4,517,120     6,699,363  (5,392,073)
    Earnings per share
    Basic                       $0.55        $0.14         $0.18      ($0.16)
    Diluted                     $0.51        $0.14         $0.17      ($0.16)
    Weighted average
     number of common
     stock outstanding
    Basic                  36,153,554   33,431,434    36,239,451  33,431,433
    Diluted                38,050,549   33,451,676    40,027,823  33,451,676



    CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES

    CONSOLIDATED BALANCE SHEETS
    AS OF MARCH 31,
                                                       2010           2009
    ASSETS
    Current assets:
      Cash and cash equivalents                   $35,994,443     $4,768,542
      Proceeds from private placement held
       in escrow account                              931,630             --
      Trade receivables, net of allowance          11,047,846     11,423,996
      Inventory, net                                4,179,910      3,692,892
      Other current assets                            116,196        481,679
      Total current assets                         52,270,025     20,367,109
    Property and equipment, net                    17,066,907     16,614,930
    Deferred tax assets                             1,068,878      1,406,814
    Land use rights, net                              185,686        189,303
    TOTAL ASSETS                                  $70,591,496    $38,578,156


    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
      Other payables and accrued expenses          $2,379,246     $2,675,983
      Trade payables                                   87,954        260,322
      Income taxes payable                          2,296,513      1,416,835
      Total current liabilities                     4,763,713      4,353,140
    Non-current liabilities:
      Due to shareholders                                  --      7,407,748
    TOTAL LIABILITIES                               4,763,713     11,760,888


    Commitments and Contingencies

    Shareholders' equity
    Preferred stock
      Authorized: 5,000,000 shares, par
       value $0.001                                        --             --
      Issued and outstanding: 365,109 shares at
       March 31, 2010 (Nil at March 31, 2009)             365             --
    Common stock
       Authorized: 120,000,000 shares, par
        value $0.001                                       --             --
       Issued and outstanding: 36,573,272
        shares at March 31, 2010;
        (36,125,754 shares at March 31, 2009)          36,573         36,126
    Additional paid-in-capital                     36,492,875     16,746,971
    Statutory reserves - restricted                 4,564,345      2,873,880
    Accumulated other comprehensive income            440,714        425,675
    Retained earnings                              24,292,911      6,734,616
    TOTAL SHAREHOLDERS' EQUITY                     65,827,783     26,817,268
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $70,591,496    $38,578,156



    CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE YEARS ENDED MARCH 31,
                                                           2010         2009
    Cash flows from operating activities:
      Net earnings                                    $19,248,760   $4,517,120
        Adjustments to reconcile net earnings
         to net cash provided by operating
         activities
        Noncontrolling interests                               --      209,308
        Depreciation and amortization                   1,593,811    1,049,739
        (Gain)/loss on disposal of property and
         equipment                                       (290,407)         289
        Deferred income taxes                             337,936     (531,259)
        Share-based payments                              117,000           --
        Stock compensation cost                                --    9,519,317
    Changes in operating assets and
     liabilities:
        Trade receivables                                 391,901   (9,404,994)
        Inventories                                      (481,732)  (1,678,154)
        Other current assets                              365,509     (364,374)
        Trade payables                                   (172,675)      94,590
        Amount due to an affiliate                             --      (59,169)
        Other payables and accrued expenses              (319,909)   2,159,113
        Income taxes payable                              877,429      789,452
    Net cash provided by operating activities          21,667,623    6,300,978
    Cash flows from investing activities:
    Cash outflow from acquisition of
     subsidiaries                                              --   (6,836,284)
    Purchases of property and equipment                (2,738,855) (13,123,980)
    Proceeds from disposal of property and
     equipment                                          1,038,273        3,924
    Net cash used in investing activities
                                                       (1,700,582) (19,956,340)

    Cash flows from financing activities:
    Proceeds from private placement held in
     escrow account                                      (931,630)          --
    Proceeds from borrowings                                   --    7,266,893
    Repayment of borrowings
                                                               --  (10,173,650)
    Amounts due to shareholders                                --    7,370,153
    Proceeds from private placement                    13,309,000    8,578,706
    Cost of raising capital                            (1,094,279)  (1,294,421)
    Net cash provided by (used in) financing
     activities                                        11,283,091   11,747,681

    Effect of exchange rate on cash and cash
     equivalents                                          (24,231)    (428,626)

    (Decrease) increase in cash and cash
     equivalents                                       31,225,901   (2,336,307)

    Cash and cash equivalents at beginning of
     year                                               4,768,542    7,104,849

    Cash and cash equivalents at end of year          $35,994,443   $4,768,542
    Supplemental disclosure of cash flows
     information:
    Cash paid for:
    Interest                                                  $--     $450,236
    Income taxes                                       $5,634,883   $3,893,159
    Supplemental disclosure of non-cash
     information:
    Issuance of common stock                             $117,000          $--
    Issuance of warrant                                  $326,705     $331,357
    Capital contribution                               $7,414,995          $--
    Stock compensation                                        $--   $9,519,317



                 CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES
       Reconciliation of non-GAAP Operating Income, Net Income and Diluted
                                Earnings per Share

                      (in thousands except per share data)

                                                  For the       For the Fiscal
                                               quarter ended      Year ended
                                                       March 31, 2009

    Net income as reported under GAAP             (5,392,073)      4,517,120
    Add: Non-cash stock compensation
     expense (1)                                   9,519,317       9,519,317
    Adjusted Net Income                            4,127,244      14,036,437

    Diluted Earnings Per Share reported
     under GAAP                                       ($0.16)          $0.14
    Add: Non-cash stock compensation
     expense per share (1)                             $0.28           $0.28
    Adjusted Diluted Earnings Per Share                $0.12           $0.42

    Diluted weighted average number of
     common stock outstanding                     33,451,676      33,451,676

    Operating Income (Loss) as reported
     under GAAP                                   (3,900,170)      9,302,476
    Add: Non-cash stock compensation
     expense (1)                                   9,519,317       9,519,317
    Adjusted Operating Income                      5,619,147      18,821,793

    (1) Non-cash stock compensation expense recorded in the fourth quarter of
        2009 related to the release of 2,799,799 shares from escrow to the
        Company's majority shareholder, Mr. Kung.


    For more information, please contact:

    Company Contact:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Phone: +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifruit.com

    Investor Relations Contact:
     Mr. Crocker Coulson, President
     CCG Investor Relations
     Phone: +1-646-213-1915 (NY office)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Elaine Ketchmere, Partner
     Email: elaine.ketchmere@ccgir.com
     Phone: +1-310-954-1345 (LA office)

DAQING, China, March 22 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today announced the Company's decision to cease production of its beverage products, effective immediately, and plans to utilize the additional space at its Daqing facility for production of its core high-margin products.

China Nutrifruit has a beverage production line with a total annual production capacity of 10,800 tons at its headquarters in Daqing, Heilongjiang Province. The Company's beverage products contributed approximately 6.0% of the most recent nine months revenue, generating a gross margin of approximately 29.0%. After careful evaluation and long-term analysis of the product mix, the Company's management team and Board concluded that the added pressure from high production costs, space constraints, and increasing market competition have significantly reduced the attractiveness and margins in the beverage segment. Therefore, it was determined that terminating production of beverages would be in the best interest of the Company and its shareholders. The Company plans to sell all equipment used for production of beverages to unrelated third parties, resulting in availability of free space at the Daqing facility to improve the production efficiency of its new glazed fruit production line. The Company timeline for adding new production lines will depend upon market demand and availability of raw materials.

In addition, China Nutrifruit is currently upgrading all of its fruit concentrate production lines at the Company's facilities in Daqing and Mu Dan Jiang, which have a total fruit concentrate annual production capacity of 9,960 tons. The upgrade will include purchase of additional equipment and implementation of advanced production techniques, resulting in efficient use of raw materials and a favorable impact on gross margins. As the upgrades will be completed before the production season begins in July 2010, any improvements will be reflected in financial results in fiscal 2011. China Nutrifruit estimates the total capital expenditure for the upgrade to be approximately $1.5 million to $1.8 million (RMB10.0 million to RMB12.0 million).

"By exiting the beverage production business, we can now turn our full attention to producing our more profitable and high growth products. We will utilize the free space from the beverage lines to improve the efficiency of production lines for our high-margin glazed fruit products, positively impacting our overall gross margins," commented Mr. Changjun Yu, Chairman of China Nutrifruit.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 20 Provinces in China. For more information, please visit http://www.chinanutrifru... .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning the Company's expected financial performance and strategic and operational plans, the Company's plans to cease production of the beverage production lines, upgrade the Company's fruit concentrate production lines and its favorable impact on gross margins, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our filling, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

    Company Contact:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifruit.com

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

     Elaine Ketchmere, Partner
     Tel:   +1-310-954-1345 (LA office)
     Email: elaine.ketchmere@ccgir.com

- Revenue increased 28% year-over-year to $17.8 million
- Net income increased 45% to $4.6 million
- Affirms FY 2010 and FY 2011 Guidance

DAQING, China, Feb. 5 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today reported financial results for the third fiscal quarter ended December 31, 2009.

    Third Quarter Fiscal Year ("FY") 2010 Highlights

    -- Net sales increased 28.4% year-over-year to $17.8 million
    -- Gross profit increased 34.8% year-over-year to $8.1 million, with gross
       margin of 45.7%
    -- Operating earnings increased 40.6% year-over-year to $6.2 million, with
       operating margin of 34.9%
    -- Net income increased 44.7% year-over-year to $4.6 million, or $0.11 per
       diluted share
    -- Successfully raised aggregate gross proceeds of approximately $13.3
       million in private placement financing
    -- Began production of new glazed fruit production line at the Company's
       Daqing facility in Heilongjiang Province, China

"China Nutrifruit had a strong third quarter with solid year-over-year growth in both revenue and net income. As planned, we successfully added a new glazed fruit production line during the quarter which will further boost sales of our rapidly growing glazed fruit products," commented Mr. Changjun Yu, Chairman of China Nutrifruit. "We experienced a healthy harvest with our facilities operating at a utilization rate in excess of 90%. Our new glazed fruit production line began production in December and will help us meet the growing market demand for our products."

Third Quarter FY 2010 Results

Net sales for the third quarter of FY 2010 increased 28.4% to $17.8 million, as compared to $13.9 million in the same quarter of fiscal 2009. The strong growth in sales was attributable to the increase in sales volume driven by rising market demand and growth in consumer spending. During the third quarter, net sales from concentrated juice products, which accounted for 47.2% of total net sales, were $8.4 million. Net sales from glazed fruit reached $5.4 million, contributing 30.1% of the net sales during the quarter compared to 6.1% in the prior year primarily due to increased sales of the Company's new blueberry glazed fruit product.

Gross profit for the third quarter of FY 2010 grew 34.8% to $8.1 million, from $6.0 million for the same period a year ago. Gross margin was 45.7% for the third quarter of FY 2010 compared to 43.5% in the third quarter of FY 2009. The increase in gross margin was mainly due to product mix changes resulting in increased sales of glazed fruit products which had a higher margin of 51.9%, compared with fruit concentrate and concentrate pulp products, which had gross margins of 44.4% and 28.3%, respectively, during the quarter.

In the third quarter of FY 2010, selling, general, and administrative expenses were $1.9 million, up 18.6% from $1.6 million in the same period last year. Selling expenses were $1.1 million, or 6.1% of net sales, compared to $0.9 million, or 6.8% of net sales, in the third quarter of FY 2009. Selling expenses as a percentage of net sales declined due to lower sales related travel expenses as the Company's established customer relationships resulted in a higher volume of repeat orders from existing customers. General and administrative ("G&A") expenses were $0.8 million, up 22.9% from $0.7 million a year ago. As a percentage of net sales, G&A expenses decreased to 4.6% compared to 4.8% in the third quarter of FY 2009.

Operating earnings in the third quarter of FY 2010 rose 40.6% to $6.2 million, from $4.4 million in the comparable period last year.

Provision for income taxes was $1.6 million compared to $1.1 million a year ago.

Net income in the third quarter of FY 2010 was $4.6 million, or $0.11 per diluted share, up 44.7% from $3.2 million, or $0.09 per diluted share a year ago. The calculation of diluted earnings per share for the third quarter of fiscal 2010 is based on 40.2 million shares compared to share count of 36.1 million in the third quarter of fiscal 2009.

Nine Months Results

For the nine months ended December 31, 2009, net sales were $46.5 million, up 28.4% from $36.2 million for the nine months ended December 31, 2009. Net sales from concentrated juice products increased 10.8% to $20.1 million from $18.1 million in the comparable period last year and accounted for 43.2% of total net sales. Net sales from glazed fruit grew 110.4% to $10.2 million from $4.8 million in the same period last year and accounted for 21.9% of net sales. Sales of concentrate pulp products increased 185.1% to $6.4 million, as compared to $2.2 million in the prior year, and accounted for 13.7% of total net sales.

Gross profit increased 26.6% to $21.8 million from $17.2 million a year ago. Gross margin was 46.8% in the first nine months of FY 2010 compared to 47.5% in the comparable period a year ago. Earnings from operations were $16.8 million, up 23.4% from $13.6 million last year. Net income for the nine months ended December 31, 2009 was $12.5 million, or $0.33 per diluted share, up 25.7% from $10.0 million, or $0.51 per diluted share, in the same period of FY 2009. The calculation of diluted earnings per share for the first nine months of FY 2010 is based on 37.5 million shares compared to share count of 19.5 million in the comparable period of fiscal 2009.

Financial Condition

As of December 31, 2009, China Nutrifruit had $19.1 million in cash and cash equivalents, $3.0 million in total liabilities with no long-term debt and working capital of $39.3 million. Shareholders' equity was $58.9 million as of December 31, 2009.

In first nine months of FY2010, the Company generated $5.7 million in cash flow from operating activities due to net income, the collection of trade receivables offset by the increase in inventory during the production season.

Business Outlook

China Nutrifruit plans to construct a new fruit and vegetable powder manufacturing facility in Daqing, Heilongjiang Province with an annual production capacity of 10,000 tons at a total cost of approximately $19.1 million. The new facility is expected to begin production in September 2010 and will produce tomato, pumpkin and other popular fruit and vegetable powders that can be used as ingredients in a variety of food products. The Company expects the new line to contribute approximately $13 to $14 million in revenue for fiscal year 2011. In addition, China Nutrifruit is seeking to maximize utilization at its new automated glazed fruit production line.

The Company affirms previously issued fiscal 2010 and 2011 guidance. For FY 2010, the Company expects approximately $72.0 - $76.0 million in revenue and $18.5 million in net income, excluding non-cash stock compensation expenses. For FY 2011, the Company expects approximately $90-$95 million in revenue, and projected net income of approximately $22-$23 million.

"We expect strong consumer spending and an increasing demand for healthy products to continue to drive demand for specialty fruit and beverage products. We have received a great deal of interest and demand from both domestic and international distributors for fruit and vegetable powder products. This high growth segment complements our existing product lines and we plan to leverage our widespread network of suppliers and distributors to sell these products," said Mr. Yu. "We intend to enhance our position as a premium food processor by continuing to introduce new products and utilizing our strong distribution network, industry relationships, and production efficiency."

Conference Call Information

Management will conduct a conference call at 9:00 a.m. Eastern Time on Friday, February 5, 2010 to discuss its third fiscal quarter 2010 results. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 877-380-4607. International callers should dial +1-702-928-6995. The conference ID number for the call is 53493754. If you are unable to participate in the call at this time, a replay will be available on Friday, February 5, 2010 at 11:00 a.m. Eastern Time, through Friday, February 19, 2010. To access the replay, dial 800-642-1687. International callers should dial +1-706-645-9291. The conference ID number for the replay is 53493754.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 20 Provinces in China. For more information, please visit http://www.chinanutrifru... .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our projections for the new fruit and vegetable powder manufacturing facility, expected financial performance in FY 2010 and FY2011 and strategic and operational plans, our expectations regarding the market for our products, our expectations regarding the continued growth of the specialty fruit and beverage market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended March 31, 2009, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

                           - Financial Tables Follow -



    CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (Stated in US Dollars)

                                                  December 31,     March 31,
                                                      2009           2009
    ASSETS
    Current assets:
      Cash and cash equivalents                   $19,135,592     $4,768,542
      Proceeds from private placement
       held in escrow account                         931,630             --
      Trade receivables, net of allowance           8,284,033     11,423,996
      Inventories, net                             13,706,578      3,692,892
      Other current assets                            191,365        481,679
    Total current assets                           42,249,198     20,367,109
    Property and equipment, net                    18,253,354     16,614,930
    Deferred tax assets                             1,241,881      1,406,814
    Land use rights, net                              186,563        189,303
    TOTAL ASSETS                                  $61,930,996    $38,578,156

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
      Other payables and accrued expenses            $929,175     $2,675,983
      Trade payables                                  507,906        260,322
      Income taxes payable                          1,554,027      1,416,835
    Total current liabilities                       2,991,108      4,353,140
    Non-current liabilities:
      Amounts due to shareholders                          --      7,407,748
    TOTAL LIABILITIES                               2,991,108     11,760,888

    Commitments and Contingencies

    Shareholders' equity
    Preferred stock
    Authorized: 5,000,000 shares, par
     value $0.001
    Issued and outstanding: 402,968 shares
     as at December 31, 2009; (nil as at
     March 31, 2009)                                      403             --
    Common stock
    Authorized: 120,000,000 shares, par
     value $0.001
    Issued and outstanding: 36,125,754
     shares as at December 31, 2009;
     (36,125,754 shares as at March 31, 2009)          36,126         36,126
    Additional paid-in-capital                     36,376,516     16,746,971
    Noncontrolling interests                               --             --
    Statutory reserves - restricted                 4,563,920      2,873,880
    Accumulated other comprehensive income            406,223        425,675
    Retained earnings                              17,556,700      6,734,616
    TOTAL SHAREHOLDERS' EQUITY                     58,939,888     26,817,268
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $61,930,996    $38,578,156



    CHINA NUTRIFRUIT GROUP limited AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
    (Stated in US Dollars)

                             Three months ended         Nine months ended
                                 December 31,               December 31,
                              2009          2008         2009         2008

    Net sales            $17,816,916   $13,873,857  $46,502,988  $36,212,228

    Cost of sales         (9,680,959)   (7,836,719) (24,734,449) (19,020,828)

    Gross profit           8,135,957     6,037,138   21,768,539   17,191,400

    Selling expenses      (1,094,111)     (945,802)  (2,592,363)  (2,035,655)
    General and
     administrative
     expenses               (816,069)     (664,202)  (2,333,033)  (1,505,804)

    Operating earnings     6,225,777     4,427,134   16,843,143   13,649,941

    Other income
     (expenses)
    Interest expense              --      (128,455)          --     (318,050)
    Other income               9,204         6,555       48,575       26,092
    Total other income
     (expenses)                9,204      (121,900)      48,575     (291,958)

    Earnings before
     noncontrolling
     interests and
     income taxes          6,234,981     4,305,234   16,891,718   13,357,983

    Provision for income
     taxes                (1,609,004)   (1,107,292)  (4,379,594)  (3,190,845)

    Earnings before
     noncontrolling
     interests             4,625,977     3,197,942   12,512,124   10,167,138

    Noncontrolling
     interests                    --            --           --     (209,308)

    Net earnings           4,625,977     3,197,942   12,512,124    9,957,830
    Other comprehensive
     income
    Foreign currency
     translation             (39,255)      (34,698)     (19,452)    (402,187)
    Comprehensive income  $4,586,722    $3,163,244  $12,492,672   $9,555,643


    Earnings per share
      Basic                    $0.12         $0.09        $0.34        $0.51

      Diluted                  $0.11         $0.09        $0.33        $0.51

    Weighted average
     number of common
     stock outstanding
      Basic               36,125,754    36,061,476   36,125,754   19,463,339

      Diluted             40,167,345    36,091,242   37,507,917   19,465,518



    CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
    (Stated in US Dollars)

                                                       Nine months ended
                                                          December 31,
                                                       2009           2008
    Operating activities:
    Net earnings                                  $12,512,124     $9,957,830
      Adjustments to reconcile net
       earnings to net cash used in
       operating  activities
        Noncontrolling interests                           --        209,308
        Depreciation and amortization               1,120,793        654,849
        Benefit for deferred income taxes             164,934        (53,113)
        Loss on disposal of property and
         equipment                                         --            289
    Changes in operating assets and
     liabilities:
        Trade receivables                           3,149,316        172,808
        Inventories                               (10,010,662)   (10,501,428)
        Prepayments                                   291,788       (499,412)
        Other current assets                           (1,462)       (64,981)
        Trade payables                                247,371      1,049,463
        Income taxes payable                          136,031        425,577
        Advances from customers                            --      1,727,701
        Consideration payables                             --     (5,352,352)
        Amount due to a director                           --        (59,076)
        Amount due to an affiliate                         --             --
        Other payables and accrued expenses        (1,908,952)      (116,020)
    Net cash provided by/(used in)
     operating activities                           5,701,281     (2,448,557)

    Investing activities:
    Cash outflow from acquisition of
     subsidiaries                                          --     (1,451,038)
    Purchases of property and equipment            (2,577,984)   (13,102,841)
    Proceeds from disposal of property
     and equipment                                         --          3,918
    Net cash used in investing
     activities                                    (2,577,984)   (14,549,961)

    Financing activities:
    Proceeds from borrowings                               --      4,353,113
    Repayment of borrowings                                --             --
    Amounts due to shareholders                            --      7,360,552
    Proceeds from issue of common stock                    --      8,578,706
    Proceeds from issuances of
     preferred stocks                              12,006,646             --
    Proceeds from issuances of warrants             1,302,354             --
    Cost of raising capital                        (1,094,047)    (1,741,421)
    Net cash provided by financing
     activities                                    12,214,953     18,550,950

    Increase in cash and cash
     equivalents                                   15,338,250      1,552,432

    Effect of exchange rate on cash and
     cash equivalents                                 (39,570)      (260,356)

    Cash and cash equivalents at
     beginning of the period                        4,768,542      7,104,849

    Cash and cash equivalents and proceeds
     from private placement held in escrow
     account at end of the period                 $20,067,222     $8,396,925

    Analysis of balances:
    Proceeds from private placement
     held in escrow account                          $931,630            $--
    Cash and cash equivalents                      19,135,592      8,396,925
                                                  $20,067,222     $8,396,925

    Supplemental disclosure of cash
     flows information:
    Cash paid for:
      Interest                                            $--       $318,050
      Income taxes                                 $4,078,629     $2,818,381

    Supplemental disclosure of
     non-cash information:
      Issuance of warrants                           $367,156            $--
      Purchases of property and equipment            $160,183            $--


    For more information, please contact:

    Company Contact:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Phone: +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifruit.com

    Investor Relations Contact:
     Mr. Crocker Coulson, President
     CCG Investor Relations
     Phone: +1-646-213-1915 (NY office)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Elaine Ketchmere, Partner
     Email: elaine.ketchmere@ccgir.com
     Phone: +1-310-954-1345 (LA office)

The new glazed fruit production line has an annual production capacity of 1,200 metric tons and will be mainly used for producing golden berry and blueberry glazed fruit products. The new fully automated production line will help lower production costs as it reduces labor costs by approximately 50%, compared to the traditional production line.

"We have experienced strong demand and rapid growth in sales of our popular golden berry and recently launched blueberry glazed fruit products. The additional capacity at Daqing will enable us to meet the rapidly growing demand in our existing markets," commented Mr. Jinglin Shi, CEO of China Nutrifruit. "The new production line further strengthens our confidence that we will meet our fiscal 2010 guidance of approximately $72.0 - $76.0 million in revenue and $18.5 million in net income."

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through 70 distributors in China. For more information, please visit http://www.chinanutrifru... .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our plan for production capacity expansion, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Current Report on Form 10-Q filed on September 30, 2009, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

    Company Contact:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifruit.com

    CCG Investor Relations
     Elaine Ketchmere, Partner
     Tel:   +1-310-954-1345
     Email: elaine.ketchmere@ccgir.com

     Crocker Coulson, President
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

DAQING, Heilongjiang, China, Nov. 18 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today announced revenue and net income guidance for fiscal year 2010 ("FY 2010") and fiscal year 2011 ("FY 2011"), ended March 31, 2010 and March 31, 2011, respectively.

China Nutrifruit expects revenue for FY 2010 to be in the range of $72-$76 million, which represents a 28%-35% increase over revenue of $56.4 million reported in fiscal year 2009. The Company expects FY 2010 net income to be in the range of $18-$19 million, up 28%-35% from adjusted net income of $14.0 million for fiscal year 2009, which excludes non-cash stock compensation expense of $9.5 million recorded in the fourth quarter of 2009. Projected revenue for fiscal year 2011 is expected to be approximately $90-$95 million, and projected net income is expected to be approximately $22-$23 million. These estimates are based on the Company's current production capacity and the addition of two new production lines, glazed fruit and concentrate pulp, to be added in the third and fourth quarter of fiscal year 2010, respectively.

"The rapidly growing consumer demand for specialty fruit based products and rising per capita juice consumption are the key growth drivers for our revenue growth in FY 2010 and FY 2011. With the proceeds from our recent financing, we plan to expand our production capacity by adding a newly built glazed fruit production line and acquire a concentrate pulp production line, which will boost our overall production capacity enabling market expansion and increased penetration," commented Mr. Jinglin Shi, CEO of China Nutrifruit. "Due to the absence of close competitors in our niche market and our efforts to build a well established supply and distribution network, we expect to maintain healthy profit margins. We are confident in out ability to meet or exceed our guidance for FY 2010 and FY 2011."

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through 70 distributors in China. For more information, please visit http://www.chinanutrifru....

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our plan for production capacity expansion, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward- looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward- looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Current Report on Form 10-Q filed on September 30, 2009, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

    Company Contact:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifru...

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

Heilongjiang, China, Nov. 13, 2009 (PRNewswire-Asia-FirstCall) -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today reported financial results for the second quarter of its 2010 fiscal year ended September 30, 2009.

    Second Quarter 2010 Highlights
-- Net sales increased 17.2% year-over-year to $19.3 million
-- Gross profit increased 24.2% year-over-year to $9.7 million, with gross
margin of 50.1%
-- Operating income increased 24.4% year-over-year to $8.5 million, with
operating margin of 44.0%
-- Net income increased 26.7% year-over-year to $6.4 million, or $0.18 per
diluted share
-- China Nutrifruit's common stock is trading on NYSE Amex Market since
August 27, 2009
-- Launched a new bilingual corporate Web site under the domain name of
http://www.chinanutrifruit.com
-- Introduced the new blueberry glazed fruit product, which was well
received by customers and accounted for 8.4% of net sales
-- Awarded the High Tech Enterprise certification in Heilongjiang Province

"We are excited to report another quarter with strong growth in revenue and net income, due to growing market demand for our leading specialty fruit based products. We continue to benefit from growth in per capita disposable income and purchasing power as the Chinese government's economic stimulus plan positively impacts consumer demand," commented Mr. Jinglin Shi, CEO of China Nutrifruit. "During the quarter we launched a new blueberry glazed fruit product which quickly gained popularity and was well received by our consumers. We also expanded our market reach by adding two new distributors. With the completion of our recent financing, we are moving forward with our capacity expansion plans and expect to continue to achieve profitable growth in the future."

Second Quarter 2010 Results

Net sales for the second quarter of fiscal 2010 were $19.3 million, up 17.2% from $16.5 million in the same quarter of fiscal 2009. The strong sales growth was primarily due to increased sales volume as a result of rising demand for the Company's products. The company launched a new blueberry glazed fruit products during the quarter which gained strong consumer demand contributing to the overall sales growth. During the second quarter, net sales from concentrated juice products, which accounted for 41.6% of the total net sales, were $8.0 million, an increase of 6.7% from $7.5 million in the second quarter of fiscal year 2009. The new concentrate juice production line in Mu Dan Jiang reached over 90% of utilization rate during the fiscal quarter. Net sales from glazed fruit and nectar, which accounted for 19.7% and 16.1% of net sales, were $3.8 million and $3.1 million, up 45.8% and 25.0% from $2.6 million and $2.5 million in the second quarter of fiscal 2009, respectively. During the second quarter, the Company introduced its new blueberry glazed fruit products, which contributed $1.6 million of sales, or 8.4% of total sales. Beverages, which represented 5.1% of net sales, were $1.0 million, down 15.8% from $1.2 million in the second quarter of fiscal 2009.

Gross profit for the second quarter of 2010 was $9.7 million, up 24.2% from $7.8 million for the same period a year ago. Gross margin was 50.1% for the second quarter of 2010 compared to 47.3% in the second quarter of 2009. The increase in gross margin was due to a greater proportion of the product mix from glazed fruit and nectar products which provide higher margin of approximately 63.0% and 67.8%, respectively, compared with fruit concentrate and concentrate pulp products, which had gross margins of 45.6% and 33.2%, respectively, during the quarter. On a sequential basis, gross margin increased 8.2 percentage points from 41.9% in the first quarter of fiscal 2010.

In the second quarter of 2010, selling, general, and administrative expenses were $1.2 million, up 22.7% from $1.0 million a year ago. Selling expenses were $0.7 million, or 3.5% of net sales, compared to $0.7 million, or 4.0% of net sales, in the second quarter of fiscal 2009. The decline in selling expenses as a percentage of total revenue was due to less sales related travel expenses as the Company established business relationships with its customers, resulting in large, repeat orders from existing customers. General and administrative expenses were $0.5 million, up 64.5% from $0.3 million a year ago. The significant increase in expenses was due to higher professional fees and other expenses related to the Company's status as a public company.

Operating income in the second quarter of fiscal 2010 was $8.5 million, an increase of 24.4% from $6.8 million a year ago.

Provision for income taxes was $2.2 million compared to $1.7 million a year ago.

Net income in the second quarter of fiscal 2010 was $6.4 million, or $0.18 per diluted share, up 26.7% from $5.0 million, or $0.26 per diluted share a year ago. The calculation of diluted earnings per share for the second quarter of fiscal 2010 is based on 36.2 million shares compared to share count of 19.3 million in the second quarter of fiscal 2009.

Six Months Results

For the six months ended September 30, 2009, net sales were $28.7 million, up 28.8% from $22.3 million in the six months ended September 30, 2009. Net sales from concentrated juice products, which accounted for 40.7% of total net sales in the first six months of fiscal 2010, were $11.7 million, up 20.1% from $9.7 million during the comparable period a year ago. Among the Company's concentrated juice products, sales of crab apple and raspberry increased 45.9% and 345.3%, respectively. Net sales from glazed fruit and nectar, which accounted for 16.9% and 13.8% of net sales, were $4.8 million and $3.9 million, up 21.7% and 1.7% from $4.0 million and $3.9 million in the same period a year ago, respectively. Sales of concentrate pulp products accounted for 15.7% of total net sales and totaled $4.5 million, up 579.7% from $0.7 million the prior year.

Gross profit increased 23.9% to $13.6 million from $11.0 million a year ago. Gross margin was 47.5% in the first six months of fiscal year 2010 compared to 49.4% in the comparable period a year ago. Income from operations was $10.6 million, up 16.9% from $9.1 million last year. Net income for the six months ended September 30, 2009 was $7.9 million, or $0.22 per diluted share, up 9.7% from $7.2 million, or $0.65 per diluted share, in the same period of fiscal 2009. The calculation of diluted earnings per share for the first six months of fiscal 2010 is based on 36.2 million shares compared to share count of 11.1 million in the comparable period of fiscal 2009.

Financial Condition

As of September 30, 2009, China Nutrifruit had $15.5 million in cash and cash equivalents and proceeds from private placement held in escrow account, $5.1 million in total liabilities with no long term debt and working capital of $35.6 million. Shareholders' equity stood at $53.0 million as of September 30, 2009.

In first six months of fiscal 2010, the Company used $0.2 million in cash flow from operating activities mainly due to build up of inventory during the peak production season and an increase in trade receivables as a result of increased sales during the quarter.

Recent Events

In October 2009, received aggregate gross proceeds of approximately $13.31 million from a private placement financing in which it issued a total of 403,418 units, comprised of one share of the Company's newly-designated convertible preferred stock and a warrant to purchase 2.5 shares of the Company's common stock. The Company plans to use the proceeds to increase production capacity and expand its product portfolio.

Business Outlook

China Nutrifruit has begun construction of a new glazed fruit production line, with an annual production capacity of 1,200 metric tons, and expects to begin production in the third quarter of fiscal 2010. This new production line will mainly produce the Company's recently launched and increasingly popular blueberry glazed fruit product. The Company is also in the process of acquiring a concentrate pulp production line. With this acquisition China Nutrifruit will bring concentrate pulp production in-house, increase production capacity, improving its ability to manage production cycle and enhance profitability.

"The second quarter of fiscal 2010 marked a major milestone for China Nutrifruit, as our common began trading on the NYSE AMEX Stock Exchange and we raised capital to support our capacity expansion plans. With the growing demand for premium specialty fruit in the market, we are confident to execute our growth plan to increase production capacity and expand our market reach to increase penetration in the more affluent areas in Eastern China," said Mr. Shi. "Fruit juice and fruit products have relatively low consumption rates in China compared with the developed world and represents rapidly growing market, we are confident in our ability to capitalize on this market opportunity and create value for our shareholders. In fiscal 2010, we expect to achieve the make good target of $18.5 million in net income."

Conference Call Information

Management will conduct a conference call at 10:00 a.m. Eastern Time on Friday, November 13, 2009 to discuss its second quarter 2010 results. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 888-481-7939. International callers should dial +1 617-847-8707. The pass code for the call is 449 613 08. If you are unable to participate in the call at this time, a replay will be available on Friday, November 13, 2009 at 12:00 p.m. Eastern Time, through Friday, November 27, 2009. To access the replay, dial 888-286-8010. International callers should dial 617-801-6888. The conference pass code is 894 600 66.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through 70 distributors in China. For more information, please visit http://www.chinanutrifruit.com .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our plan for production capacity expansion, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Current Report on Form 10-Q filed on September 30, 2009, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

                         --Financial Tables Follow--

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Stated in US Dollars)

September 30,      March 31,
2009             2009
ASSETS
Current assets:
Cash and cash equivalents                    $4,590,725       $4,768,542
Cash held in escrow account                  10,874,169               --
Trade receivables, net of allowance          12,827,089       11,423,996
Inventories, net                             12,149,512        3,692,892
Other current assets                            245,046          481,679
Total current assets                         40,686,541       20,367,109
Property and equipment, net                  15,894,325       16,614,930
Deferred tax assets                           1,297,189        1,406,814
Land use rights, net                            186,882          189,303
TOTAL ASSETS                                $58,064,937      $38,578,156

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Other payables and accrued expenses          $1,751,250       $2,675,983
Trade payables                                1,165,599          260,322
Income taxes payable                          2,135,700        1,416,835
Total current liabilities                     5,052,549        4,353,140
Non-current liabilities:
Amounts due to shareholders                          --        7,407,748
TOTAL LIABILITIES                             5,052,549       11,760,888

Noncontrolling interests                             --               --

Commitments and Contingencies

Shareholders' equity
Preferred stock
Authorized: 5,000,000 shares, par value
$0.001
Issued and outstanding: 359,502 shares as
at September 30, 2009; (nil as at March
31, 2009)                                          360               --
Common stock
Authorized: 120,000,000 shares, par value
$0.001
Issued and outstanding: 36,125,754 shares
as at September 30, 2009; (36,125,754
shares as at March 31, 2009)                    36,126           36,126
Additional paid-in-capital                   35,035,775       16,746,971
Statutory reserves - restricted               2,873,880        2,873,880
Accumulated other comprehensive income          445,483          425,675
Retained earnings                            14,620,764        6,734,616
TOTAL SHAREHOLDERS' EQUITY                   53,012,388       26,817,268
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY                                     $58,064,937      $38,578,156

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Stated in US Dollars)

Three months ended       Six months ended
September 30,           September 30,
2009        2008        2009        2008

Net sales                $19,324,868 $16,495,353 $28,683,933 $22,270,612

Cost of sales             (9,641,849) (8,697,099)(15,053,882)(11,270,854)

Gross profit               9,683,019   7,798,254  13,630,051  10,999,758

Selling expenses            (677,760)   (656,299) (1,498,140) (1,088,036)
General and
administrative expenses    (501,365)   (304,702) (1,515,070)   (825,744)

Operating earnings         8,503,894   6,837,253  10,616,841   9,085,978

Other income (expenses)
Interest expense                  --    (128,089)         --    (189,079)
Other income                  31,623       6,009      39,367      19,447
Total other income
(expenses)                   31,623    (122,080)     39,367    (169,632)

Earnings before
noncontrolling interests
and income taxes          8,535,517   6,715,173  10,656,208   8,916,346

Provision for income
taxes                    (2,184,779) (1,703,066) (2,770,060) (1,517,977)

Earnings before
noncontrolling interests  6,350,738   5,012,107   7,886,148   7,398,369

Noncontrolling interests          --          --          --    (209,308)

Net earnings               6,350,738   5,012,107   7,886,148   7,189,061
Other comprehensive
income
Foreign currency
translation                  17,500    (681,907)     19,808    (367,488)
Comprehensive income      $6,368,238  $4,330,200  $7,905,956  $6,821,573

Earnings per share
Basic                        $0.1758     $0.2599     $0.2183     $0.6488
Diluted                      $0.1753     $0.2599     $0.2179     $0.6488

Weighted average number
of common stock
outstanding
Basic                     36,125,754  19,287,708  36,125,754  11,080,372
Diluted                   36,226,175  19,287,708  36,187,189  11,080,372

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Stated in US Dollars)

Six months ended
September 30,
2009             2008
Operating activities:
Net earnings                                 $7,886,148       $7,189,061
Adjustments to reconcile net
earnings to net cash used in
operating  activities
Noncontrolling interests                             --          209,308
Depreciation and amortization                   748,912          404,604
Benefit for deferred income taxes               109,625         (666,978)
Loss on disposal of property and
equipment                                           --              287
Changes in operating assets and
liabilities:
Trade receivables                            (1,389,136)      (7,065,054)
Inventories                                  (8,448,704)     (10,451,177)
Prepayments                                          --       (1,749,140)
Other current assets                            236,678            3,948
Trade payables                                  904,587        5,367,497
Income taxes payable                            716,902          893,793
Advances from customers                              --        4,166,599
Consideration payables                               --       (5,343,723)
Amount due to a director                             --        2,883,294
Amount due to an affiliate                           --          (61,369)
Other payables and accrued expenses            (927,211)       1,534,100
Net cash used in operating activities          (162,199)      (2,684,950)

Investing activities:
Cash outflow from acquisition of
subsidiaries                                        --       (1,441,647)
Purchases of property and equipment                  --      (13,017,397)
Proceeds from disposal of property and
equipment                                           --            3,892
Net cash used in investing activities                --      (14,455,152)

Financing activities:
Proceeds from borrowings                             --        7,208,236
Repayment of borrowings                              --       (2,883,294)
Amounts due to shareholders                          --        7,348,686
Proceeds from issue of common stock                  --        4,706,467
Proceeds from private placement              11,860,000               --
Cost of raising capital                        (985,831)      (1,083,622)
Net cash provided by financing activities    10,874,169       15,296,473

Increase/(decrease) in cash and cash
equivalents                                 10,711,970       (1,843,629)

Effect of exchange rate on cash and cash
equivalents                                    (15,618)        (474,162)

Cash and cash equivalents at beginning of
the period                                   4,768,542        7,104,849

Cash and cash equivalents and proceeds
from private placement held in escrow
account at end of the period               $15,464,894       $4,787,058

Analysis of balances:
Proceeds from private placement held in
escrow account                             $10,874,169              $--
Cash and cash equivalents                     4,590,725        4,787,058
$15,464,894       $4,787,058

Supplemental disclosure of cash flows
information:
Cash paid for:
Interest                                            $--         $159,789
Income taxes                                 $1,943,534       $1,265,735

Supplemental disclosure of non-cash
information:
Issuance of warrants                           $327,000              $--

For more information, please contact:

Company Contact:
Mr. Colman Cheng, Chief Financial Officer
China Nutrifruit Group Limited
Tel:   +852-9039-8111
Email: zsj@longheda.net
Web:   http://www.chinanutrifruit.com

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

SOURCE China Nutrifruit Group Limited

Source: PR Newswire (November 13, 2009 - 7:01 AM EST)

The date, time and location of China Nutrifruit's presentation at the 2009 China Growth Conference are as follows:

    Date:       Friday, November 20, 2009
    Time:       8:00 a.m. to 8:35 a.m. Eastern Time in Track I
    Presenter:  Colman Cheng, Chief Financial Officer
    Venue:      The Millennium Broadway Hotel
                145 West 44th Street
                New York, New York 10036

The Brean Murray, Carret & Co. 2009 China Growth Conference will be held November 19-20, 2009 at the Millennium Broadway Hotel in New York City and will feature 70 leading companies. The two-day conference consists of 25-minute presentation slots followed by 10-minutes of open floor Q&A sessions with institutional clients. The gathering of presenting companies, senior management and industry experts as well as institutional investors will enjoy a unique and comprehensive look at China on a global scale. In addition to each company presentation, 1x1 meetings will also be offered throughout the day.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through 70 distributors in China. For more information, please visit http://www.chinanutrifru... .

    For more information, please contact:

     Mr. Crocker Coulson, President
     CCG Investor Relations
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Phone: +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifru...

As one of the world's most important food and beverage trade fairs, Anuga enjoys high regard and acceptance from exhibitors and visitors. China Nutrifruit exhibited its popular premium specialty fruit products at the fair. In attendance were the Company's Chairman, Mr. Changjun Yu, and Chief Technology Officer, Mr. Wenlong Wang. Anuga provided the Company with the opportunity to network with global distributors, gain exposure to new technologies and new products, and market the Company's diverse range of specialty fruit products.

"We are very pleased with our participation at Anuga 2009, a high-profile and esteemed international trade fair which provides significant international exposure and marketing opportunities," commented Mr. Jinglin Shi, CEO of China Nutrifruit. "This was a good platform for us to gain insight into current trends and global demand for specialty fruit products, along with advanced world-class processing technology. We expect to increase our visibility in the industry with continued participation in trade fairs as we enter our next phase of expansion with the addition of two new processing lines."

About Anuga 2009

Anuga features 10 specialized trade shows under one roof, each showcasing the specific profile and product range of its market segment. Anuga 2009 included areas such as fine food, dairy, drinks, bread & bakery, hot beverages, chilled food, frozen food and organic products. Anuga 2009 was attended by 6,522 companies from 97 countries. About 153,500 trade visitors from 180 countries attended Anuga 2009, including more than 61% from abroad. For more information, please visit http://www.anuga.com .

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through 70 distributors in China. For more information, please visit http://www.chinanutrifru... .

Safe Harbor Statement

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:

     CCG Investor Relations
     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifru...

The Company is seeking to raise aggregate gross offering proceeds of up to $18.0 million and expects to complete subsequent closings on or before November 14, 2009. Holders of the Series A Convertible Preferred Stock are entitled to receive cumulative dividends at an annual rate of 7% and may convert the shares into the Company's common stock at an initial price of $3.30 per share. In connection with the offering, the investors received warrants to purchase up to 898,777 shares of common stock.

"We are pleased to announce the initial closing of our preferred stock offering. We intend to invest the proceeds in a new glazed fruit line and concentrate pulp production line. The concentrate pulp line will allow us to bring production of apple and pear juice concentrate in-house and enhance margin of these popular products," said Mr. Jinglin Shi, CEO of China Nutrifruit. "With the new glazed fruit production line, we will begin producing our newly developed glazed blueberry product to the market. We believe these new production lines will allow us to accelerate growth in revenue and enhance our profitability in the year ahead."

The securities issued in the private placement have not been registered under the United States Securities Act of 1933, as amended or the securities laws of any other jurisdiction. The Company is obligated to register the shares of common stock underlying the Series A Convertible Preferred Stock and Warrants within a pre-defined period. Until they are registered, these securities may not be sold by investors in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. For more detailed information on this financing, see the Company's Current Report on Form 8-K which will be filed with the Securities and Exchange Commission on or about October 1, 2009.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through 70 distributors in China. For more information, please visit http://www.chinanutrifru... .

Safe Harbor Statement

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". Such statements include, among others, those concerning the offering, our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the new production lines, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. 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. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC'), and our subsequent SEC filings.. 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.

"Listing our shares on the NYSE Amex Market is a major milestone for our Company," commented Mr. Jinglin Shi, CEO of China Nutrifruit. "We believe this will help broaden our visibility in the U.S. capital markets and strengthen our growing investor base. We wish to thank our management team, dedicated employees, shareholders and loyal customers for their ongoing support."

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network covering 19 provinces in China. For more information, please visit http://www.chinanutrifru... .

Safe Harbor Statement

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:

    CCG Investor Relations
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

    China Nutrifruit Group Limited
     Mr. Colman Cheng, Chief Financial Officer
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifru...

The new Web site was created to strengthen China Nutrifruit's communication with investors, customers and business partners. The Web site provides key information on China Nutrifruit, including corporate history, industry and product information, corporate news, and investor information, including access to SEC filings, investor presentations, corporate profile, press releases, and earnings conference call webcasts. All content is fully available in both English and Chinese.

"We are delighted to launch our new corporate web site that offers valuable information to our customers and investors," said Mr. Jinglin Shi, CEO of China Nutrifruit. "The Web site will enhance our communications with investors and customers, enabling our stakeholders to better understand our business and growth strategy. The site will serve as a vital platform to deliver on our commitment to achieve higher transparency as a U.S. publicly traded company."

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. The Company has established an extensive nationwide sales and distribution network covering 19 provinces in China. For more information, please visit http://www.chinanutrifru... .

Safe Harbor Statement

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:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.chinanutrifru...

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

The Company expects to begin trading on NYSE Amex market on August 27, 2009. The trading symbol for China Nutrifruit's common stock will remain "CNGL".

"We are excited to report that our application to list on NYSE Amex has been approved and our common stock will soon be listed and traded on the esteemed NYSE Amex Market," commented Mr. Jinglin Shi, CEO of China Nutrifruit. "We are honored to join the NYSE Amex group of companies and believe the upgrade to NYSE Amex will attract additional interest from the investment community and further enhance our corporate image and visibility in the U.S. capital markets."

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through 70 distributors in China. Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our plan for production capacity expansion, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Current Report on Form 10-K filed on June 30, 2009, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

     CCG Investor Relations
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.longheda.net

Joining Mr. Jinglin Shi, China Nutrifruit's chief executive officer, will be Mr. Colman Cheng, chief financial officer, and Mr. Crocker Coulson, president of CCG Investor Relations.

To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 888-419-5570. International callers should dial 617-896-9871. The pass code for the call is 448 420 22.

If you are unable to participate in the call at this time, a replay will be available on Monday, August 17, 2009 at 11:00 a.m. Eastern Time, through Monday, August 31, 2009. To access the replay, dial 888-286-8010. International callers should dial 617-801-6888. The conference pass code is 651 038 91.

About China Nutrifruit Group Limited.

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through approximate 70 distributors in China.

    For more information, please contact:

    Company Contact:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.longheda.net

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

China Nutrifruit has been trading on the Over-the-Counter since August 2008. The Company's management is confident that it satisfies all of the eligibility requirements for listing on NYSE AMEX, including corporate governance requirements. At its board meeting in June 2009, the Company appointed Mr. Tony Chun Wai Chan, Mr. William Haus, and Mr. Jingfu Li as independent directors. With these additions, China Nutrifruit's board of directors is now comprised of five directors, three of whom are independent. The Company also adopted a code of ethics and established audit, compensation and corporate governance and nominating committees.

"We are pleased to announce that we have submitted our application to list our shares on the NYSE AMEX. Over the past year as a US listed company, we have taken various initiatives to establish a strong relationship with our shareholders and the investment community, including participating in investor conferences and media interviews. We believe listing on the NYSE AMEX will improve our ability to interact with US investors, enhance our corporate image and increase our market visibility," commented Mr. Jinglin Shi, CEO of China Nutrifruit.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. The Company has established an extensive nationwide sales and distribution network covering 19 provinces and 43 cities, through 70 distributors in China.

Safe Harbor Statement

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:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.longheda.net

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

DAQING, China, July 1 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (OTC Bulletin Board: CNGL - News; "China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), announced its financial results for its fourth quarter and fiscal year ended March 31, 2009.

China Nutrifruit's reported financial statements represent the consolidated results of Daqing Longheda Food Company Limited ("Longheda"), the Company's indirect, wholly-owned subsidiary following its acquisition in May 2008. For comparison purposes, the Company has provided pro forma consolidated statements of operations including Longheda's operations for three months and fiscal year ended March 31, 2008. These pro forma statements of operations are presented in Table 2 below. During the quarter ended March 31, 2009, the Company recorded $9.5 million in non-cash compensation expense related to the Company's August 2008 private placement. The Company has presented non-GAAP operating income, net income and diluted earnings per share excluding the impact of this expense on its financial results for the three months and fiscal year ended December 31, 2009. A reconciliation of these non-GAAP measures to the corresponding GAAP measure is provided in Table 3 below. The Company uses the non-GAAP and pro forma information in its internal performance measures to analyze performance between periods, develop internal projections and measure management performance. The Company believes the non-GAAP and pro forma results provide investors with a measurement of operating results which are comparable with subsequent periods.

    Highlights for the Fourth Quarter 2009
    -- Record net sales increased 174.8% to $20.2 million from pro forma net
       sales of $7.4 million in the fourth quarter of fiscal 2008
    -- Gross profit grew 106.9% year-over-year to $7.5 million, with gross
       margin of 36.9%
    -- Net loss was $5.4 million, or $0.16 per diluted share, compared to pro
       forma net income of $2.9 million, or $0.10 per diluted share, a year
       ago
    -- Excluding $9.5 million in non-cash stock compensation expenses, non-
       GAAP net income was $4.1 million, or $0.12 per diluted share, up 41.2%
       from pro forma net income a year ago

    Fiscal Year 2009 Highlights
    -- Net sales were $56.4 million up 63.5% from pro forma net sales of $34.5
       million in fiscal 2008
    -- Gross profit increased 50.8% year-over-year to $24.6 million, with a
       gross margin of 43.7%
    -- Net income was $4.5 million, or $0.14 per diluted share, compared to
       pro forma net income of $11.6 million, or $0.38 per diluted share, in
       fiscal 2008
    -- Excluding non-cash compensation expenses, non-GAAP net income increased
       21.2% year-over-year to $14.0 million, or $0.42 per fully diluted share
    -- Completed a private placement of 3.1 million shares of common stock
       generating $6.84 million in net proceeds
    -- Launched new fruit concentrate production plant in Mu Dan Jiang City,
       increasing annual production capacity by 6,000 metric tons
    -- Increased number of distributors to 70, up from 68 at the end of fiscal
       2008

"We closed our 2009 fiscal year with strong performance in what is typically one of our seasonally slowest periods of the year. Recognizing the demand for our products was not impacted by the global financial contraction, our distributors increased orders in the fourth quarter to build up their inventories," commented Mr. Jinglin Shi, CEO of China Nutrifruit. "Our strong sales growth was largely driven by increased market demand for our specialty fruit based products and successful expansion of our distribution network. The fruit processing market in China, especially the market for premium specialty fruit products, continued to expand in fiscal year 2009 due to increasing health awareness among end consumers and increase in per capita disposable income."

Unaudited Fourth Quarter 2009 Results

Net sales for the fourth quarter ended March 31, 2009 was $20.2 million, up 174.8% from pro forma net sales of $7.4 million in the fourth quarter of fiscal 2008. The strong sales growth was mainly attributable to increased market demand and capacity expansion of the Company's fruit concentrate products. The Company's new concentrate juice production line came online in August 2008, contributing to the overall sales growth.

For the fourth quarter of fiscal year 2009, net sales from concentrated juice products, which accounted for 53.3% of the total net sales, were $10.8 million, up 242.3% from $3.1 million in the fourth quarter of fiscal year 2008. Among the Company's concentrated juice products, sales of golden berry and blueberry surged 89.2% and 215.3% to $2.6 million and $4.6 million, respectively. Net sales from glazed fruit and nectar, which accounted for 6.5% and 10.6% of net sales, were $1.3 million and $2.1 million, down 4.2% and up 116.0% from $1.4 million and $1.0 million in the fourth quarter of fiscal 2008, respectively. Beverages, which represented 6.6% of net sales, were $1.3 million, up 56.2% from $0.9 million in the fourth quarter of fiscal 2008.

Gross profit for the fourth quarter of 2009 was $7.4 million, up 106.9% from pro forma gross profit of $3.6 million for the same period a year ago. Gross margin was 36.9% for the fourth quarter of 2009 compared with pro forma gross margin of 49.0% in the fourth quarter of 2008. The decline in gross margin was due to decrease in gross margin of the Company's crab apple concentrate juice. The market price of crab apples decreased considerably in the fourth quarter of 2009. The Company had build up inventory of crab apples in the second and third quarter of 2009 and the significant decline in prices of crab apple affected the Company's gross margin. The gross margin for crab apple concentrate juice declined from 39.5% in the fourth quarter of fiscal year 2008 to 7.1% in the fourth quarter of 2009. The market price for crab apples has stabilized and the Company expects gross margin will improve in fiscal year 2010.

For the fourth quarter of 2009, general, and administrative expenses were $10.9 million, significantly higher than pro forma general and administrative expenses of $0.3 million a year ago. The increase was due to $9.5 million in non-cash compensation expenses related to the release of approximately 2.8 million "make good" shares which were pledged by Yiu Fai Kung, the Company's major shareholder, in connection with the Company's August 2008 private placement agreement. A total of 5,599,598 shares of the Company's common stock held by Mr. Kung were placed into escrow in support of the Company's performance in fiscal year 2009 and 2010. Because Mr. Kung is a director of the Company's subsidiary Fezdale, any release of the shares placed in escrow is accounted for as a separate compensatory agreement and recorded as non-cash compensation and recorded as a general and administrative expense. The Company met the specified net income target of $13.9 million for the 2009 fiscal year (excluding the non-cash compensation expense), and therefore one-half of the pledged shares were released and a non-cash compensation expenses of $9.5 million was recorded in the fourth quarter of 2009. Other general and administrative expenses also increased mainly due to higher professional fees associated with being a U.S. public reporting company. Selling expenses declined as the Company efficiently managed selling costs and ceased royalty payments for the beverage product "The World of Legend" which was replaced by "The Legend of Network" in May 2008.

For the fourth quarter of fiscal year 2009, interest expenses were $162,151, up 33.2% from pro forma interest expenses of $121,755 in the fourth quarter of fiscal year 2008, primarily due to increase in bank loans for working capital requirements.

Operating loss in the fourth quarter of fiscal 2009 was $4.4 million. Excluding the non-cash compensation expense related to the August 2008 private placement, non-GAAP operating income in the fourth quarter of fiscal year 2009 was $5.2 million, up 88.1% from pro forma operating income of $2.7 million a year ago.

Net loss in the fourth quarter of 2008 was $5.4 million, or $0.16 per diluted share. Excluding the non-cash compensation expense related to the August 2008 private placement, non-GAAP net income for the fourth quarter of fiscal year 2009 was $4.1 million, or $0.12 per fully diluted share, up 41.1% from pro forma net income of $2.9 million, or $0.10 per fully diluted share, for the fourth quarter of fiscal year 2008.

Full Year Financial Results

For fiscal year ended March 31, 2009, net sales were $56.4 million, up 63.5% from pro forma net sales of $34.5 million in fiscal year ended March 31, 2008. Net sales from concentrated juice products, which accounted for 51.2% of fiscal 2009 total net sales, were $28.9 million, up 78.8% from $16.2 million in fiscal 2008. Among the Company's concentrated juice products, sales of golden berry and blueberry surged 64.9% and 95.1% to $8.9 million and $13.2 million, respectively. Net sales from glazed fruit and nectar, which accounted for 10.9% and 13.2% of net sales, were $6.2 million and $7.4 million, up 35.1% and 39.7% from $1.6 million and $2.1 million in fiscal 2008, respectively. Net sales of fresh golden berry fruits accounted for 4.3% of net sales and totaled $2.4 million, up 18.6% from $2.1 million in the last fiscal year. Beverages, which represented 8.2% of net sales, were $4.6 million, up 8.2% from $4.2 million in fiscal 2008.

Gross profit increased 50.8% to $24.6 million from pro forma gross profit of $16.3 million a year ago. Gross margin was 43.7% in fiscal year 2009 compared to pro forma gross margin of 47.3% in 2008. Income from operations was $9.3 million, down from pro forma income from operations of $13.1 million last year, reflecting the impact of $9.5 million in non-cash compensation expenses recorded in the fourth quarter of fiscal 2009. Net income for the fiscal year ended March 31, 2009 was $4.5 million, or $0.14 per diluted share. Excluding the impact of the non cash compensation expenses, non-GAAP net income for fiscal 2009 was $14.0 million, or $0.42 per diluted share, up 21.2% from pro forma net income of $11.6 million, or $0.38 per diluted share, in fiscal 2008.

Financial Condition

As of March 31, 2009, China Nutrifruit had $4.8 million in cash and cash equivalents, $11.8 million in total liabilities with no long term debt and working capital of $16.0 million. Shareholders' equity stood at $26.8 million as of March 31, 2009, compared to $5.9 million as of March 31, 2008. In fiscal year 2009, the Company generated $6.3 million in cash flow from operating activities.

On October 10, 2008, the Company completed a private placement of 3,085,840 shares of its common stock resulting in approximately $6.84 million in net proceeds. The Company used the proceeds to build its new concentrate juice production line in Mu Dan Jiang. Capital expenditures for fiscal year 2009 were $13.1 million, which was utilized for capacity expansion.

Recent Events

On June 11, 2009, China Nutrifruit appointed Mr. Tony Chun Wai Chan, Mr. William Haus, and Mr. Jingfu Li as independent board members. With these additions, China Nutrifruit's board of directors is now comprised of five directors, three of whom are independent. The Company also adopted a code of ethics and established audit, compensation and corporate governance and nominating committees.

On June 22, 2009, the Company announced the relocation of its new headquarters in Daqing City, Heilongjiang Province, China. The new headquarters is located in the Daqing Hi-tech Industrial Development Zone, a leading industrial area in Daqing City, Heilongjiang Province. With a total floor area of 966 square meters, the new office provides enhanced work environment for employee growth and development, and is located in close proximity to the Company's processing facility in Daqing, facilitating improved management and co-ordination.

Business Outlook

The Company is currently readying itself to begin production for the harvest season which occurs from mid July through November of each year. During the upcoming harvest season, China Nutrifruit plans to increase utilization of its newly added concentrate juice production line. The Company also intends to extend its geographic outreach by adding new distributors with strong track records in target markets, including Eastern and Greater Middle China. Subject to financing, the Company plans to expand production capacity to meet the growing market demand for its specialty fruit products. In fiscal 2010, the Company plans to add a new glazed fruit production line and a pulp concentrate production line.

China Nutrifruit has recently submitted its application to list its common stock on the NYSE Amex Stock Exchange. The Company believes that it meets all corporate governance and other listing requirements of the exchange and expects its application to be accepted soon.

"We believe China's processed fruit products industry will continue to experience robust growth as health conscious consumers transition away from carbonated beverages and embrace premium specialty fruit juice products such as ours. Furthermore, the Ministry of Agriculture is taking steps to encourage the fruit processing industry in an effort to reduce the fruit harvest loss ratio. We believe our leading market position, strong and profitable distribution network and long term relationships with suppliers and local farmers put us in an ideal position to capitalize on the many growth opportunities available to us," concluded Mr. Shi. "Our growth strategy for 2010 will focus on revenue growth by improving utilization of our new production line, extending our market presence and expanding capacity and our product portfolio."

Conference Call Information

Management will conduct a conference call at 9:00 a.m. Eastern Time on Wednesday, July 1, 2009 to discuss its fourth quarter and full year 2009 results. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 866-800-8648. International callers should dial 617-614-2702. The pass code for the call is 115 76 906. If you are unable to participate in the call at this time, a replay will be available on Wednesday, July 1, 2009 at 11:00 a.m. Eastern Daylight Time, through Wednesday, July 15, 2009. To access the replay, dial 888-286-8010. International callers should dial 617-801-6888. The conference pass code is 902 65 743.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network covering 19 provinces and 43 cities, through 70 distributors in China.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Current Report on Form 10-K filed on June 30, 2009, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

                            -Financial Tables Follow -



                                     Table 1

                 CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES
                       CONSOLIDATED STATEMENT OF OPERATIONS
                         (THREE MONTHS AND TWELVE MONTHS)
                              (Stated in US Dollars)

                                Three Months Ended        Fiscal Year Ended
                                     March 31,                 March 31,
                                 2009         2008        2009         2008
                              (unaudited) (unaudited)   (audited)   (audited)

    Net Sales                 20,206,609   7,316,945   56,418,837  13,527,015
    Cost of Sales            (12,756,905) (3,963,710) (31,777,733) (7,499,879)
    Gross Profit               7,449,704   3,353,235   24,641,104   6,027,136

    Selling Expenses            (894,226)   (309,696)  (2,929,881)   (859,995)
    General & Administrative
     Expenses                (10,902,944)   (535,105) (12,408,747)   (535,105)

    Operating earnings        (4,347,466)  2,508,434    9,302,476   4,632,036

    Other income (expenses)
    Interest expenses           (162,151)   (136,882)    (480,201)   (250,985)
    Other income                   5,638      30,509       31,730      30,569
    Total other income          (156,513)   (106,373)    (448,471)   (220,416)

    Earnings before minority
     interests and income
     tax                      (4,503,979)  2,402,061    8,854,005   4,411,620

    Provision for income tax    (883,619)    286,440   (4,127,577)     (7,384)

    Earnings before minority
     interests                (5,387,598)  2,688,501    4,726,428   4,404,236

    Minority interests                --    (479,526)    (209,308)   (895,780)

    Net earnings              (5,387,598)  2,208,975    4,517,120   3,508,456

    Earnings per share
    Basic                         ($0.16)       0.07        $0.14       $0.12
    Diluted                       ($0.16)       0.07        $0.14       $0.12
    Weighted average number
     of common stock
     outstanding
    Basic                     33,431,434  30,166,878   33,431,434  30,166,878
    Diluted                   33,451,676  30,166,878   33,451,676  30,166,878



                                    Table 2

                 CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES
                 PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
                        (THREE MONTHS AND TWELVE MONTHS)
                             (Stated in US Dollars)

                                                 Three Months     Fiscal Year
                                                    Ended            Ended
                                                   March 31,       March 31,
                                                     2008            2008
                                                   Proforma         Proforma
                                                  Unaudited        Unaudited

    Net Sales                                      7,354,156      34,510,140
    Cost of Sales                                 (3,752,934)    (18,167,973)
    Gross Profit                                   3,601,222      16,342,167

    Selling Expenses                                (554,791)     (2,077,076)
    General & Administrative Expenses               (296,618)     (1,150,058)

    Operating earnings                             2,749,813      13,115,033

    Other income (expenses)
    Interest expenses                               (121,755)       (402,852)
    Other income
                                                      13,562          30,569
    Total other income                              (108,193)       (372,283)

    Earnings before minority interests and
     Income Tax                                    2,641,620      12,742,750

    Provision for income tax                         285,454      (1,159,750)

    Earnings before MI                             2,927,074      11,583,000

    Minority interests                                    --              --

    Net earnings                                   2,927,074      11,583,000

    Earnings per share
    Basic                                              $0.10           $0.38
    Diluted                                            $0.10           $0.38
    Weighted average number of common stock
     outstanding
    Basic                                         30,166,878      30,166,878
    Diluted                                       30,166,878      30,166,878



                                    Table 3

                 CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES
           Reconciliation of non-GAAP Operating Income and Net Income
                      (in thousands except per share data)

                                                For the quarter    Fiscal Year
                                                    ended             ended
                                                         March 31, 2009

    Net income as reported under GAAP             (5,387,598)      4,517,120
    Add: Non cash stock compensation
     expense (1)                                   9,519,317       9,519,317
    Adjusted Net Income                            4,131,719      14,036,437

    Diluted Earnings Per Share reported
     under GAAP                                       ($0.16)          $0.14
    Add: Non cash stock compensation
     expense per share (1)                             $0.28           $0.28
    Adjusted Diluted Earnings Per Share                $0.12           $0.42

    Diluted weighted average number of
     common stock
    outstanding                                   33,451,676      33,451,676

    Operating Income (Loss) as reported
     under GAAP                                   (4,347,466)      9,302,476
    Add: Non cash stock compensation
     expense (1)                                   9,519,317       9,519,317
    Adjusted Operating Income                      5,171,851      18,821,793

    (1) Non-cash stock compensation expense recorded in the fourth quarter of
        2009 related to the release of 2,799,799 shares from escrow to the
        Company's majority shareholder, Mr. Kung.



                                   Table 4

                CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS
                                AS OF MARCH 31,

                                                     2009              2008
    ASSETS
    Current assets:
       Cash and cash equivalents         $      4,768,542       $ 7,104,849
       Trade receivables, net of
        allowance                              11,423,996         1,921,457
       Inventory, net                           3,692,892         1,955,725
       Other current assets                       481,679           114,865
       Total current assets                    20,367,109        11,096,896
    Property and equipment, net                16,614,930         7,173,523
    Deferred tax assets                         1,406,814           875,555
    Land use rights, net                          189,303           318,120
    TOTAL ASSETS                         $     38,578,156      $ 19,464,094

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
       Short-term borrowings             $             --       $ 2,848,110
       Other payables and accrued
        expenses                                2,675,983           494,278
       Consideration payable                           --         5,353,755
       Trade payables                             260,322           159,078
       Income taxes payable                     1,416,835           607,680
       Amount due to an affiliate                      --            57,219
       Total current liabilities                4,353,140         9,520,120
    Non-current liabilities:
       Amounts due to shareholders              7,407,748                --
    TOTAL LIABILITIES                          11,760,888         9,520,120

    Minority interests                                 --         4,039,286

    Commitments and Contingencies

    Shareholders' equity
    Preferred stock
       Authorized: 5,000,000 shares, par
        value $0.001
       None issued and outstanding                     --                --
    Common stock
       Authorized: 120,000,000 shares,
        par value $0.001
       Issued and outstanding: 36,125,754
        shares at March 31, 2009;
        (30,166,878 shares at
        March 31, 2008)                            36,126            30,167
    Additional paid-in-capital (deficit)       16,746,971           (29,167)
    Statutory reserves - restricted             2,873,880         1,713,065
    Accumulated other comprehensive
     income                                       425,675           812,312
    Retained earnings                           6,734,616         3,378,311
    TOTAL SHAREHOLDERS' EQUITY                 26,817,268         5,904,688
    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                              $     38,578,156 $      19,464,094



                                  Table 5

               CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                         FOR THE YEARS ENDED MARCH 31,

                                                     2009              2008
    Cash flows from operating activities:
       Net earnings                          $    4,517,120      $ 3,508,456
    Adjustments to reconcile net earnings
     to net cash provided by operating
     activities
             Minority interests                     209,308          927,493
             Depreciation and amortization        1,049,739          207,836
             Loss on disposal of property
              and equipment                             289               --
             Benefit for deferred income
              taxes                                (531,259)        (875,555)
             Stock compensation cost              9,519,317               --
    Changes in operating assets and
     liabilities:
             Trade receivables                   (9,404,994)       5,271,640
             Inventories                         (1,678,154)       4,088,234
             Other current assets                  (364,374)         624,997
             Trade payables                          94,590         (603,475)
             Amount due to an affiliate             (59,169)              --
             Other payables and accrued
              expenses                            2,159,113       (4,437,157)
             Income taxes payable                   789,452          388,569
    Net cash provided by operating
     activities                                   6,300,978        9,101,038

    Cash flows from investing activities:
    Cash (outflow)/inflow from
     acquisition of subsidiaries                 (6,836,284)         423,566
    Purchases of property and equipment         (13,123,980)              --
    Proceeds from disposal of property
     and equipment                                    3,924               --
    Net cash (used in)/provided by
     investing activities                       (19,956,340)         423,566

    Cash flows from financing activities:
    Proceeds from borrowings                      7,266,893               --
    Repayment of borrowings                     (10,173,650)      (3,232,067)
    Amounts due to shareholders                   7,370,153               --
    Proceeds from private placement               8,578,706               --
    Cost of raising capital                      (1,294,421)              --
    Net cash provided by (used in)
     financing activities                        11,747,681       (3,232,067)

    Effect of exchange rate on cash and
     cash equivalents                              (428,626)         812,312

    (Decrease) increase in cash and cash
     equivalents                                 (2,336,307)       7,104,849

    Cash and cash equivalents at
     beginning of year                            7,104,849               --

    Cash and cash equivalents at
     end of year                             $    4,768,542  $     7,104,849



    For more information, please contact:

     CCG Investor Relations
     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

Joining Mr. Jinglin Shi, China Nutrifruit's chief executive officer, will be Mr. Colman Cheng, chief financial officer, and Mr. Crocker Coulson, president of CCG Investor Relations. The Company plans to release its earnings on June 30, 2009.

To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 866-800-8648. International callers should dial 617-614-2702. The pass code for the call is 115 769 06.

If you are unable to participate in the call at this time, a replay will be available on Wednesday, July 1, 2009 at 11:00 a.m. Eastern Daylight Time, through Wednesday, July 15, 2009. To access the replay, dial 888-286-8010. International callers should dial 617-801-6888. The conference pass code is 90265743.

About China Nutrifruit Group Limited.

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network covering 19 provinces and 43 cities, through 70 distributors in China.

    For more information, please contact:

    Company Contact:
     Mr. Colman Cheng, Chief Financial Officer
     China Nutrifruit Group Limited
     Tel:   +852-9039-8111
     Email: zsj@longheda.net
     Web:   http://www.longheda.net

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