BEIJING and CLAREMONT, Calif., Nov. 12, 2008 (GLOBE NEWSWIRE) -- Kiwa Bio-Tech Products Group Corporation (OTCBB:KWBT) announced that despite a reduction in revenues for the third quarter, revenues for the first nine months of 2008 were $7,539,083 an increase of 21.3% over $6,214,712 in the first nine months of 2007.

Review of Third Quarter:

Revenues for the third quarter of 2008 were $2,327,315 a decrease of 21.3% compared to $2,957,972 in the third quarter of 2007. This decrease was in part due to restrictions in truck transport related to Olympics traffic contingencies and the traffic control period that started on July 1 and end on September 20, 2008 for a total of 82 days.

Cost of sales was $2,271,772 and $2,718,712 for the three months ended September 30, 2008 and 2007, respectively. The decrease of $446,940 or 16.4% in cost of sales was primarily due to the rapid decrease of sales. Gross profit was $55,543 and $239,260, respectively, in the three months ended September 30, 2008 and 2007. The significant decrease in gross profit margin in the bio-enhanced feed business was due to an increase in our purchasing prices of raw materials. Although we adjusted the prices of our products in response, materials prices rose faster than we could adjust product prices.

Net loss for the third quarter of 2008 was $567,770 (including non-cash expenses of $214,793), a decrease of $30,751 or 5.1% as compared to net loss in the same period of 2007, which was $598,521. This decrease resulted from the following factors: (1) decrease in gross profit of $183,717 or 76.8%; (2) decrease in operating expenses of $163,906 or 25.2%; (3) decrease in interest expenses of $28,875 or 16.8%; and (4) minority interest in subsidiary in the third quarter of 2008 was $5,988 and negative $15,699 for the same period of 2007.

Please refer to documents filed today with the Securities and Exchange Commission for additional information on the results for the third quarter and first nine months of 2008.

The management and board of Kiwa in meetings held over the past few weeks has decided to concentrate the Company's financial resources on business fundamentals and operations. Mr. Wei Li, CEO and Chairman, noted, "We are already seeing a catch up in orders for fertilizer for October, November and December to make up for the reduced shipping in August/September. The entire company has been given incentives to encourage focus on selling fertilizer. Employees at all levels of the company are being encouraged to reach their sales targets."

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 at 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.

 KIWA BIO-TECH PRODUCTS GROUP CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 AND COMPREHENSIVE INCOME (UNAUDITED)

     Item              Three Months Ended       Nine Months Ended
                         September 30,             September 30,
                     ----------------------  ------------------------
                        2008        2007         2008         2007
                     ----------  ----------  -----------  -----------
 Net sales           $2,327,315  $2,957,972  $ 7,539,083  $ 6,214,712
   Cost of sales      2,271,772   2,718,712    7,353,634    5,763,387
                     ----------  ----------  -----------  -----------
 Gross profit            55,543     239,260      185,449      451,325

 Operating
  expenses

   Consulting and
    professional
    fees                 54,980     161,241      243,757      618,380
   Officers'
    compensation         59,690      58,811      178,153      213,280
   General and
    admini-
    strative            211,493     275,532      686,010      651,055
   Selling
    expenses             41,051      77,650      155,632      284,916
   Research and
    development          42,922      41,931      144,054      134,730
   Depreciation
    and amortiz-
    ation                33,930      35,234       86,748       96,098
   Allowance and
    provision            42,367         (60)      42,309          604
                     ----------  ----------  -----------  -----------
 Total operating
  expenses              486,433     650,339    1,536,663    1,999,063
                     ----------  ----------  -----------  -----------
 Operating loss        (430,890)   (411,079)  (1,351,214)  (1,547,738)

 Interest
  expenses             (142,868)   (171,743)    (565,728)    (573,647)
                     ----------  ----------  -----------  -----------
 Loss before
  minority
  interest in
  a subsidiary's
  deficit              (573,758)   (582,822)  (1,916,942)  (2,121,385)

 Minority
  interest in a
  subsidiary's
  deficit
  (profit)                5,988     (15,699)      31,956       (8,778)
                     ----------  ----------  -----------  -----------
 Loss from
  continuing
  operations           (567,770)   (598,521)  (1,884,986)  (2,130,163)

 Loss on
  discontinued
  operations:
   Discountinued
    urea entrepot
    trade -
    Commission
    paid to a
    related party            --          --           --     (414,509)
                     ----------  ----------  -----------  -----------

 Net loss            $ (567,770) $ (598,521) $(1,884,986) $(2,544,672)
                     ==========  ==========  ===========  ==========


 Other
  comprehensive
  loss
  Translation
   adjustment            (3,834)     (7,653)     (40,075)     (34,234)
                     ----------  ----------  -----------  -----------
 Comprehensive
  loss               $(571,604)  $ (606,174) $(1,925,061) $(2,578,906)
                     ==========  ==========  ===========  ==========

 Net (loss)
  from
  continuing
  operations
  per common
  share - basic
  and diluted        $   (0.006) $   (0.008)  $   (0.022) $    (0.029)
                     ==========  ==========  ===========  ===========
 Net loss on
  discontinued
  operations
  per common
  share - basic
  and diluted        $       --  $       --   $       --  $    (0.006)
                     ==========  ==========  ===========  ===========
 Weighted
  average
  number of
  common shares
  outstanding-
  basic and
  diluted            93,551,551  76,122,358   87,788,767   74,033,591
                     ==========  ==========  ===========  ===========


 
 KIWA BIO-TECH PRODUCTS GROUP CORPORATION
 CONDENSED CONSOLIDATED BALANCE SHEETS


                                             -----------  -----------
            Item                              September     December
                                               30, 2008     31, 2007
                                             -----------  -----------
                                             (UNAUDITED)   (AUDITED)
 ASSETS
 Current assets
   Cash and cash equivalents                 $    43,161  $    61,073
   Accounts receivable, net
    of allowance for doubtful
    accounts of $339,365 and
    $277,140, respectively                       747,754      470,298
   Inventories                                   645,281      818,329
   Prepaid expenses                               17,959       70,460
   Other current assets                          133,235       67,372
                                             -----------  -----------
 Total current assets                          1,587,390    1,487,532
 Property, Plant and Equipment
   Buildings                                   1,244,940    1,162,060
   Machinery and equipment                       707,367      660,273
   Automobiles                                    81,586       76,154
   Office equipment                              109,025       93,231
   Computer software                              10,582        9,877
                                             -----------  -----------
 Property, plant and equipment
   - total                                     2,153,500    2,001,595
   Less: accumulated depreciation               (562,056)    (433,690)
                                             -----------  -----------
 Property, plant and equipment
  - net                                        1,591,444    1,567,905
 Construction in progress                         72,059       67,262
 Intangible asset - net                          265,918      296,245
 Deferred financing costs                         68,293      129,793
 Deposit to purchase proprietary
  technology                                     126,443      126,443
                                             -----------  -----------
 Total assets                                $ 3,711,547  $ 3,675,180
                                             ===========  ===========
 LIABILITIES AND SHAREHOLDERS'
  EQUITY (DEFICIENCY)
 Current liabilities
   Accounts payable                          $ 2,052,608  $ 1,635,490
   Advances from customers                       286,444      169,553
   Construction costs payable                    299,904      316,902
   Due to related parties - trade                271,328      177,970
   Due to related parties -
    non-trade                                    557,497      551,654
   Current portion of long-term
    liabilities                                1,072,489        2,889
                                             -----------  -----------
 Total current liabilities                     4,540,270    2,854,458
 Long-term liabilities, less
  current portion
   Unsecured loans payable                     1,686,637    1,574,350
   Bank notes payable                             12,904       17,988
   Long-term convertible notes
    payable                                      798,303    2,058,625
     Less: discount relating
      to long-term convertible
      notes payable                             (504,180)    (856,308)
                                             -----------  -----------
   Long-term convertible
    notes payable - net                          294,123    1,202,317
                                             -----------  -----------
 Total long-term liabilities                   1,993,664    2,794,655

 Minority interest in a subsidiary                85,931      110,838

 Shareholders' equity (deficiency)
   Common stock - $0.001 par value
    Authorized 200,000,000 shares.
    Issued and outstanding
    95,331,706 and 81,519,676
    shares at September 30, 2008
    and December 31, 2007                         95,332       81,520
   Preferred stock - $0.001 par
    value Authorized 20,000,000
    shares, none issued                               --           --
   Additional paid-in capital                 10,182,144    9,217,876
   Stock-based compensation
    reserve                                     (183,619)    (307,053)
   Deficit accumulated                       (12,959,508) (11,074,522)
   Accumulated other
    comprehensive income                         (42,667)      (2,592)
                                             -----------  -----------
 Total shareholders' equity
  (deficiency)                                (2,908,318)  (2,084,771)
                                             -----------  -----------
 Total liabilities and
  stockholders' equity                       $ 3,711,547  $ 3,675,180
                                             ===========  ===========

CONTACT:  Kiwa Bio-Tech Products Group Corporation
          Yvonne Wang
          (626) 715-5855
          kiwabiotech@gmail.com

          Equity Communications
          Robert Schechter
          212-499-6809
          ir4kiwa@hotmail.com