CLAREMONT, Calif., May 8, 2006 (PRIMEZONE) -- KIWA Bio-Tech Products Group Corporation (OTCBB:KWBT) reports progress with the development, manufacturing and marketing of its anti-viral, aerosol delivery, veterinary product to prevent diseases for fowls and livestock, such as avian influenza, swine influenza, Newcastle disease, avian infectious bronchitis, swine infectious gastroenteritis, swine epidemic diarrhea, hog cholera, foot and mouth disease and duck viral hepatitis.
In February, KIWA signed an agreement for AF-01 Anti-viral Aerosol Agent with Jinan Ke Long Bo Ao Biotech Co. Ltd, Chinese Academy of Medical Sciences. This agreement included technology related to the production of the veterinary AF-01 Anti-viral Aerosol Agent, and rights to produce the new medicine. KIWA has agreed to payments in cash and stock of Renminbi ten million Yuan. Cash payments of Renminbi six million Yuan will be paid in installments upon completion of various steps in the transfer of technology. The stock payment will be made within 90 days after the approval for new veterinary medicine production is acquired and the trial operation is ended, completing all the formalities for transferring the technology. The value of the stock will be calculated at the market price at that date.
Wei Li, Chairman and CEO of KIWA reported, "We are pleased with the progress being made to bring this critical need product to market and expect to make initial customer deliveries in July. Our production facility will be capable of producing 1,500 tons per year. The product will be more effective and cost efficient than other measures being considered for the prevention of bird flu and other farm animal diseases."
AF-01 Anti-viral Aerosol Agent has very effective: able to inactivate pathogenic viruses both in vitro and in vivo. The cure rate is as high as 80 - 89%, and protection rate is 95 - 100% in animal experiments. It is also highly selective: it will not disrupt normal ecological systems. It is tasteless and does not have toxic or adverse effects. It is not a skin irritant and will not cause harm if inhaled. It will not induce resistant-virus strains. It will not accumulate in an animal's body or in the environment and will not cause environmental pollution.
The preventive effects of AF-01 Anti-viral Aerosol Agent can be enhanced when combined with vaccines. If used early in a disease outbreak the preventive effects would be expected to be high and the product could be used in homes and offices to prevent the cross-infection between human and animals.
About KIWA Bio-Tech Products Group Corporation
KIWA is a California company, with offices and operations in China, that develops, manufactures, and distributes innovative, cost-effective, and environmentally safe bio-technological products to agricultural and natural resource conservation markets. The Company has acquired the rights to manufacture and market AF-01 Anti-viral Aerosol Agent for use in preventing (blocking) bird-flu disease in Chinese and international markets. The Company has excellent relations with government authorities in China and has developed several innovative, high margin products, while continuing to grow through internal and external product development.
For more information on KIWA and its products, please refer to the website at www.kiwabiotech.com or the Company filings with the United States Security and Exchange Commission, available for free at www.sec.gov.
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.