BEIJING and CLAREMONT, Calif., Dec. 23, 2009 (GLOBE NEWSWIRE) -- Kiwa Bio-Tech Products Group Corporation (OTCBB:KWBT) announced that on December 22, 2009, Tianjin Kiwa Feed Co., Ltd. ("Kiwa Tianjin"), 80% owned subsidiary of Kiwa Bio-Tech Products Group Corporation, filed a lawsuit against Tianjin Challenge Feed Co., Ltd. ("Challenge Feed"), Kiwa's 20% joint venture partner in Kiwa Tianjin, in the local court of Wuqing District, Tianjin, where Kiwa Tianjin is domiciled.
In the lawsuit, Kiwa Tianjin asserted that Challenge Feed unlawfully disposed of assets held by Kiwa Tianjin. Such assets include machinery and equipment and inventories. Kiwa Tianjin is seeking damages against Challenge Feed in the amount of approximately RMB 2.2 million in total. The local court is currently reviewing the complaint and related documents filed with it.
Taking into consideration of the fact that Kiwa Tianjin will not be able to operate normally with its own machinery and equipment in the factory leased from Challenge Feed, Kiwa Tianjin has chosen another factory to continue its operations. Kiwa Tianjin is in the process of negotiation of a long-term cooperation agreement with the owner of the new factory.
ABOUT KIWA BIO-TECH PRODUCTS GROUP CORPORATION
The Company develops, manufactures, distributes and markets innovative, cost-effective, and environmentally safe bio-technological products for agricultural and natural resources and environmental conservation. The Company's products are designed to enhance the quality of human life by increasing the value, quality and productivity of crops and decreasing the negative environmental impact of chemicals and other wastes. For more information about the Company, please review documents filed with the SEC (www.sec.gov) or visit the Company's website, www.kiwabiotech.com.
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.