CLAREMONT, Calif., May 12, 2006 (PRIMEZONE) -- KIWA Bio-Tech Products Group Corporation (OTCBB:KWBT) stated today that on May 10, the Company announced the signing of an agreement to acquire Beijing Huasheng Medicine Co. ("BSM"). The agreement, referred as an Acquisition Framework Agreement, expresses the mutual intent of the parties to enter into an acquisition transaction in which the Company will acquire 60% of the equity of BSM. In exchange for the 60% equity stake, the Company will contribute its recently acquired AF-01 anti-virus blocker technology as well as a cash amount which is subject to negotiation but expected by the Company to be approximately Renminbi (RMB) 12 million (US$1.487 million). The acquisition is subject to the parties entering into a definitive agreement relating to the transaction, obtaining requisite regulatory approvals, and to the Company's raising funds to pay the purchase price. It is anticipated that the closing of the transaction will occur in the third quarter of 2006.
About KIWA Bio-Tech Products Group Corporation
KIWA is a California company, with offices and operations in China, that develops, manufactures, and distributes innovative, cost-effective, and environmentally safe bio-technological products to agricultural and natural resource conservation markets. The Company has acquired the rights to manufacture and market AF-01 Anti-viral Aerosol Agent for use in preventing (blocking) bird-flu disease in Chinese and international markets. The Company has excellent relations with government authorities in China and has developed several innovative, high margin products, while continuing to grow through internal and external product development.
For more information on KIWA and its products, please refer to the website at www.kiwabiotech.com or the Company filings with the United States Security and Exchange Commission, available for free at www.sec.gov
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.