LOS ANGELES, June 17, 2004 (PRIMEZONE) -- KIWA Bio-Tech Products Group Corporation ("the Company" or "KIWA"), (OTCBB:KWBT) announced today that it has begun formation of a corporate managerial task force to address the requirements of Section 404 of the Sarbanes-Oxley Act for internal control over financial reporting, scheduled to become effective in 2005.
Wei Li, Chairman and CEO of KIWA stated, "KIWA possesses an extremely talented and dedicated financial accounting staff, including MBAs from top US schools as well as CPAs and CPA candidates in both the US and China. As we develop our business strategy within the US and abroad, it is of the utmost importance for the company to maintain strong internal controls so as to reduce investor risk and position KIWA as a sound public company." He added, "We believe the task force will be able to set up and implement the best systems in the most cost efficient manner; however we will not hesitate to hire outside consultants to provide professional advice and to test our internal control systems when necessary."
In another effort to reduce risk and ensure investor confidence, last month KIWA retained Grobstein, Horwath & Co LLP ("Horwath") as its independent accountant. Horwath, with over 400 offices in 90 countries, has been providing professional services to clients for over 35 years and is among the largest accounting practices in Southern California.
Li commented on retaining Horwath, "As a development stage company with aggressive goals, we recognize the importance of working with highly capable and established professional services organizations. A key to our future success will be relying on the seamless functionality of our operations and financial reporting systems."
About KIWA Bio-Tech Products Group Corporation
KIWA develops, manufactures and distributes innovative, cost-effective, and environmentally safe bio-technological products to agricultural and environmental protection markets. The Company's goal is to have people in China and elsewhere in the world eat healthier, drink cleaner and live longer. The Company is a pioneer in commercialization of biotechnology, having an offshore manufacturing base in Shandong Province, China and distributing bio-tech products worldwide.
About Cinapsys, Inc.
Cinapsys is a pioneer in investor relations utilizing not only the Internet, but more traditional methods as well. Cinapsys professionals work to build shareholder value by establishing relationships and effectively communicating the Client's message, investment potential and corporate vision to Main Street, Wall Street and the financial media. Cinapsys brings a vibrant, dynamic and enthusiastic spirit to solving our Clients' challenges.
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 within 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