CNGL China Nutrifruit Grp. Limited

DAQING, China, Jan. 6, 2012 /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 that the Company is conducting independent laboratory tests on its concentrate juice and glazed fruit products in response to a customer's concern over product quality.

In December 2011, the Company was informed by its customer that China Nutrifruit's concentrate juice and glazed fruit products contain higher than specified levels of sodium. The Company's customer has requested China Nutrifruit for a full refund of the purchased products valued at approximately RMB50 million ($7.9 million). In response to this matter, the Company is currently performing independent laboratory tests to verify the product quality claims of its customer. As a precautionary measure, the Company has also implemented additional testing measures in its manufacturing process to ensure product quality.

Mr. Changjun Yu, Chairman of China Nutrifruit commented "Our business goal is to deliver healthy and nutritional fruit based products to our consumers and we will take every measure to ensure that. This is the only case of quality issue that has come to our attention. We are treating this matter very seriously and will carry out a thorough investigation. We are committed to stringent food quality control and safety standards. We have immediately set up a special investigation team to verify the claims of our customer and are prepared to take corrective measures, if required. We will announce the results of the laboratory tests as soon as the information is available. However, if verified, we are prepared to coordinate a voluntary recall and refund to our customer. This may have a negative impact to our financial and operation this year, nonetheless, our business operation remains normal as of today."

China Nutrifruit's manufacturing facilities are ISO9001 certified and meet the HACCP (Hazard Analysis & Critical Control Point) series qualifications.

About China Nutrifruit Group Limited

Through its subsidiaries Daqing Longheda Food Company Limited and Daqing Senyang Fruit and Vegetable Food Technology 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, seabuckthorn, blackcurrant and raspberry. Its processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 18 provinces 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 in fiscal year 2012, new products, our new facility, our estimates about sodium levels, and its expected impact on the Company's business and financial performance, our expectations regarding the market for our existing products and new products, 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 Annual Report on Form 10-K for the year ended March 31, 2011, 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.

SOURCE China Nutrifruit Group Limited