SAN FRANCISCO, Jan. 26, 2006 (PRIMEZONE) -- China Ginseng Holdings, Inc. (U.S.) (Other OTC:CSNG) the largest fully integrated ginseng private enterprise in China, is pleased to announce today that it has consummated its acquisition of Meihekou Ginseng, Ltd., located in Meihekou, Jilin Province, China.
China Ginseng Holdings, Inc. has acquired 100% of the shares of Meihekou Ginseng, Ltd., and Meihekou will operate as a wholly-owned subsidiary of China Ginseng Holdings, Inc. The terms of this acquisition included a combination of cash and stock.
Meihekou Ginseng, Ltd. was established in 2001 and has been a pioneer in producing fresh-squeezed ginseng energy drinks. The Meihekou manufacturing plants will continue to serve through the end of year 2005 as the base of distribution; and in year 2006, China Ginseng plans to expand by relocating the manufacturing plant to a location that is closer to the City of Changchun, which is where the company's headquarters are located. Meihekou Ginseng has been an innovative marketer in field of energy drink, especially for its line of ginseng/honey drink, which is well-received by the local market. Currently it has capacity to produce about 3,000 tons of energy drinks annually and is marketed under the brand name "Lao BangChui."
Liu Changzhen, the Chairman of China Ginseng Holdings, Inc. commented on the acquisition; "We are very pleased that Meihekou has agreed to be acquired by China Ginseng. Acquiring this company fits extremely well with our overall strategies of expansion, and we especially liked the fact that its products are well-received by the market as well as its innovative marketing strategies. We look forward to working with many of the talented people that started this company as well as expect the acquisition to be accretive to the earnings of China Ginseng Holdings, Inc."
About China Ginseng Holdings, Inc.
China Ginseng Holdings, Inc. (U.S.) (Other OTC:CSNG) is a major international purveyor of quality Asian ginseng with integrated operations encompassing growing, processing, distribution and marketing of Asian Ginseng roots, seeds, seedling and related nutritional products. In terms of acreage that China Ginseng controls, it is the largest fully integrated, private ginseng enterprise in China. CSNG currently controls some 1,550 hectares (3,875 acres) of land that is approved by the Chinese government specifically for ginseng growing and cultivation. For further information, please visit our website: www.chinaginsenginc.com.
Safe Harbor Statement
This release includes forward-looking statements. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested may be identified from time to time.
Copyright October 2005. All rights reserved China Ginseng Holdings, Inc.