Asia Bio-Chem Group Corp. Announces First Quarter Financial Results



    /THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR
    DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED
    STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN
    OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED
    STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER
    THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
    SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR
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    TSX Venture: ABC

    TORONTO, July 7 /CNW/ - Asia Bio-Chem Group Corp. (TSXV: ABC) (the
"Company") today announced that it has filed with applicable Canadian
securities regulatory authorities interim financial statements for the period
ending March 31, 2008 of its wholly-owned subsidiary, Asia Bio-Chem Group
Company, Ltd. ("Asia Bio"). The interim financial statements have been filed
pursuant to applicable Canadian securities laws following completion of the
Company's acquisition of Asia Bio, which was completed effective June 19,
2008. Going forward, and following the change to the Company's year-end to
December 31, the Company will be reporting its interim results on a
consolidated basis to include those of Asia Bio.
    Asia Bio, today reported sales of $19.9 million for the three-month
period ended March 31, 2008. Asia Bio reported gross profit of $5.1 million
representing 25.6% of sales for the quarter compared with 24.2% for the fiscal
year ending December 31, 2007. Asia Bio's EBITDA for the first quarter was
$3.9 million while net income was $3.1 million or 15.7% of revenue.
    "We continue to see strong demand for our products including improved
pricing for our by-products which contributed to our improved gross margins
during our first quarter," stated Mr. Zhiping Wang, President and CEO of Asia
Bio. Strong demand for cornstarch is driven by China's growing population and
the changing diet as a result of the emerging middle class. Further, improved
prices for our by-products is driven by the growing demand for cooking oil as
well as demand for our animal feed products.
    As at March 31, 2008, Asia Bio reported cash of $14.1 million and working
capital of $8.8 million. At March 31, 2008, the only loan was a $13.5 million
in short term note due to shareholders which was subsequently converted to
equity on April 1, 2008. The Company has no current or long term bank debt.

    
    SUMMARY FINANCIAL STATEMENTS

                                               Three months ended
    ($000)                                       March 31, 2008

          Sales                                         19,895
          Cost of sales                                 14,810
                                                        ------
          Gross profit                                   5,085
          Net income                                     3,124
          EBITDA                                         3,869

          Cash                                          14,120
          Working Capital                                8,845
          Total assets                                  41,691
    

    About Asia Bio-Chem Group

    The Company, through Asia Bio, its wholly-owned subsidiary in the Peoples
Republic of China ("PRC") is in the business of manufacturing cornstarch and
related products. From its plant in Liaoning Province, the Company produces
approximately 270,000 tonnes of cornstarch, corn germ, gluten and fiber per
year for sale into the domestic market in the PRC. The Company's business plan
involves the expansion of production capacity either by way of acquisition or
construction of new capacity.

    This news release contains certain statements that may be deemed "forward
looking statements". Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the words
"expects,", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the Company
believes the expectations expressed in such forward looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in forward
looking statements. Forward looking statements are based on the beliefs,
estimates and opinions of the Company's management on the date the statements
are made. The Company undertakes no obligation to update these forward looking
statements, except as required by law, in the event that management's beliefs,
estimates or opinions, or other factors, should change.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS
    RELEASE.




For further information:

For further information: For Corporate Information: Asia Bio-Chem Group
Corp., Suite 2105 - 130 Adelaide Street West, Toronto, Ontario M5H 3P5,
Attention: Robert Wilson, Tel: (416) 603-7500

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Asia Bio-Chem Group Corp.

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