20.05.2010 12:00:00

Yayi International Adds 1,080 Retail Outlets to Broaden Distribution Network

Yayi International Inc., (OTC Bulletin Board: YYIN) ("Yayi International” or "the Company”), the first mover and a leading producer and distributor of premium goat milk formula products for infants, toddlers, young children, and adults in the People’s Republic of China ("China”), today announced it has added 1,080 retail outlets in China, significantly broadening its distribution network since the Company rolled out a new product portfolio at the beginning of this year.

During the first five months of 2010, Yayi International has added 1,080 retail points, including more Wal-Mart and Carrefour stores, Lotus, Shiji Lianhua, Shiji Hualian, Trust Mart and Ren Ren Le as well as other hypermarkets, local supermarket chains, infant-maternity stores, drug stores and convenience stores. The expansion of Company’s distribution network has helped deepen its market penetration throughout China, with additions of 430 stores in North China, 333 stores in Central China, 208 stores in South China and 109 stores in East China. Yayi International has been restructuring its nationwide distribution network since the beginning of this year with more emphasis on developing its product coverage in the hypermarkets and supermarket chains while streamlining the smaller stores established in the past. To date, the Company has close to 3,800 retail points throughout China.

"We are delighted to add these new platforms for continued sales growth. The broader distribution network, while further strengthening our market penetration, is also a reflection of growing consumer acceptance of our "Milk Goat” branded goat milk products,” commented Ms. Li Liu, Chief Executive Officer of Yayi International. "We will remain focused on being nimble and adept to meeting existing and future distribution opportunities and support the sustainable expansion of our market reach across China.”

About Yayi International

Yayi International is the first mover and a leading producer and distributor of premium goat milk formula products for infants, toddlers, young children and adults in China. Its current formula product lines are targeted at the premium market segment and health-conscious consumers. The Company has a vertically-integrated production process. It sources raw goat milk from its proprietary dairy farms and neighboring goat dairy farmers on a long-term contract basis in milk collection centers, which ensures high quality control of its products. The Company's distribution network comprises of a nationwide footprint across China in 27 provinces and municipalities including infant-maternity store chains, supermarkets (including multinational chains), and drug stores as well as catalogue sales and a dedicated online store at Taobao.com.

Forward-looking Statements

This press release contains certain statements that may include 'forward-looking statements'. All statements other than statements of historical fact included herein are 'forward-looking statements'. These forward looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

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