Synutra Achieved 88.7% Net Sales Growth for the First Quarter Ended June 30, 2008

Synutra International, Inc. , a leading infant formula company in China, and a producer, marketer and seller of nutritional products for infants, children and adults, today reported results for the first quarter ended June 30, 2008. The Company's strong operational and financial performance is detailed in the Form 10-Q, which has been filed with the US Securities and Exchange Commission.

Synutra's Chairman and Chief Executive Officer Liang Zhang commented: ''Growing market demand, successful marketing programs and increases in our average selling prices were the major contributors to our nutritional product line sales growth in the first quarter. We also made progress on our initiative to increase sales of our higher-priced premium products, exemplified by greater sales of the Super infant formula and the launch of our U-Smart Gold Package. However, the overall gross margin impact of the shift in sales mix toward premium products was offset somewhat by rising raw material costs. Over the course of the year, we will continue to execute our strategy to optimize our high-quality product lines, further strengthen our brand recognition and image, broaden our penetration and increase our national market share.''

Fiscal First Quarter Ended June 30, 2008
Net sales in the first quarter ended June 30, 2008 increased by 88.7% to $127.4 million, compared to $67.5 million for the same quarter in 2007. Gross profit increased by 80.5%, from $37.1 million in the first quarter ended June 30, 2007 to $66.9 million in the first quarter ended June 30, 2008, amounting to 52.5% of sales. First quarter net income increased by 193.0% to $15.6 million, compared to net income of $5.3 million in the same period in 2007. Synutra earned $0.29 per share (basic) in the first quarter of fiscal 2008, up 163.6% from $0.11 earned in the prior year period.
Synutra's 10-Q is available online:

About Synutra International, Inc.
Synutra operates nine subsidiaries developing, producing, distributing and selling dairy-based nutritional products across the People's Republic of China. It offers its products for infants, children, adults, pregnant women and nursing mothers under the ''Sheng Yuan'' or ''Synutra'' master brand and several sub-brands, including "Super," "U-Smart" and "U-Strong." The Group's extensive sales network covers 29 provinces and provincial-level municipalities in China, and comprises over 420 distributors and over 1,000 sub-distributors who sell Synutra's products in nearly 63,400 retail outlets.

The information contained herein includes statements, estimates, projections, guidance or outlook that constitute ''forward-looking" statements as defined under U.S. federal securities laws. Generally the words ''believe,'' ''expect,'' ''intend,'' ''estimate,'' ''anticipate,'' ''plan,'' ''project,'' ''will'' and similar expressions, identify forward-looking statements, which generally are not historical in nature. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward- looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act.

For more information, please contact:

Weiguo Zhang
Synutra, Inc.
Tel: +1-301-840-3888
Email: [email protected]

Brian Rafferty
Taylor Rafferty
Tel: +1-212-889-4350
Email: [email protected]


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