August 24, 2004

American Dairy Reports 800% Increase In Income

American Dairy Inc., one of the leading producers and distributors of milk powder and soybean products in China, has announced that it has filed its Form 10-QSB with the Securities and Exchange Commission (SEC).

Net income increased by 800% from $160,576 during the three months ended June 30, 2003, to $1,445,280 for the comparable period in 2004.

Sales revenues increased by $3,255,161, or 51% quarter-on-quarter to $9,620,155 for the quarter ended June 30, 2004, compared to the corresponding quarter in 2003 of $6,364,994.