Organic Herb Inc Signs Contract with Guilin Xingda Pharmaceutical Factory to be Exclusive Supplier of Bio-Vine(TM)

VANCOUVER--(BUSINESS WIRE)--October 21, 2005-- Organic Herb Inc. (OHI) announced today that it has signed a 4-year contract with Guilin xingda pharmaceutical factory (Xingda) to be the exclusive supplier of Bio-Vine(TM). The agreement relates to the transference and protection of intellectual property and the market development of Bio-Vine(TM) for anti-cancer applications. The contract is projected to generate sales of over $200,000 and $2,000,000 for OHI and Xingda respectively during the first 12-month period.

Under the terms of the agreement, OHI will provide Xingda with the Bio-Vine(TM) ingredients as well as all the technical data involved in the Bio-Vine(TM) formula and Xingda will source the ingredients exclusively from OHI. OHI has secured orders for the Bio-Vine(TM) formula of $210,000, $330,000-$380,000 and $460,000 respectively for fiscal 2005, 2006-2007 and 2008. The first order should be fulfilled in November 2005. In addition, OHI and Xingda agreed in principle to form a long-term partnership and integrate their technical skills and know-how in order to develop innovative formulas for weight-loss, potency enhancement, anti-diabetic and anti-aging applications.
Bio-Vine(TM) is an innovative formula intedned for anti-cancer applications, designed by OHI using Resveratol extracted from Giant Knotweed Extract.(Polygonum Cuspidatum.)

Chairman of Xingda, Dipin Zou, stated: "Xingda and OHI will be strong strategic partners in the development of health foods. Coupled with OHI's capability of developing innovative ingredients and formulas and its extensive knowledge of the international dietary supplements market, Xingda will gain a competitive edge in the domestic marketplace and accelerate its plans to move into the international dietary supplements market. In return, Xingda will assist OHI in expanding its market share in China as well as overseas."

OHI CEO Peter Lau stated: "This agreement with Xingda not only provides OHI with immediate financial gain in terms of revenues and profits in fiscal 2005, but it will also provide the company with a future stream of income as the partnership matures. Xingda is a successful, multi-million dollar pharmaceutical company and OHI will benefit from its reputation and expertise in the health foods manufacturing industry. With the signing of this contract, I am confident that OHI can achieve and probably surpass its revenue and profit goals for the next four years."

About Guilin xingda pharmaceutical factory (Xingda)

Guilin xingda pharmaceutical factory (Xingda)is a Traditional Chinese Medicines (TCM) and health foods manufacturer. The company is headquartered in Guilin, Guangxi Province, China. The plant is GMP certified. In fiscal 2004, the Company reported $10.6 M in revenue $3.5 M in net income.

About Organic Herb Inc.

Organic Herb Inc. is an innovative manufacturer of botanical/herbal extracts, serving the worldwide manufacturers of dietary supplements, health foods, functional beverage, pharmaceuticals and cosmetics. The Company's product line is broad, ranging from tea to herbal extract. OHI not only provides customized ingredients, but also offers value-added services such as formulation assistance, clinical trial support and private label manufacturing. The Company is in the process of expanding its operations, including its client and asset-base, in Asia and overseas. OHI's goal is to become a major player in the multi-billion dollar global herbal products industry.

For more information please contact CEO Peter Lau at [email protected] or visit the Corporate website at

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