Asia Bio-Chem Group Corp. receives long-term financing from China Construction Bank



    
    /NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE
    UNITED STATES/

    TSX Venture: ABC
    

    TORONTO, June 8 /CNW/ - Asia Bio-Chem Group Corp. (TSXV: ABC) ("Asia
Bio-Chem" or the "Company") today announced that its wholly-owned subsidiary,
Daqing Biochemical has secured a long-term loan from China Construction Bank
in the amount of 100 million RMB ($18.9 million).
    The loan will be secured against the assets of the Company's Daqing Plant
and will bear a floating rate of interest based on the People's Central Bank
Rate. The term of the loan will be 6 years with annual repayment commencing
from June 2010.
    "We are pleased to announce this financing agreement," said Zhiping Wang,
President and CEO of Asia Bio-Chem. Mr. Wang added, "This loan facility,
coupled with the previously announced loan from the Zhaoyuan County
Government, will be more than sufficient to finance the completion of our
Daqing project."

    About Asia Bio-Chem Group Corp.

    Asia Bio-Chem Group, through its wholly-owned subsidiary in the People's
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 is currently
constructing a second facility in Heilongjiang Province which, upon
completion, is expected to triple production 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.

    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 TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT
THEREFROM.

    
    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: Robert Wilson, (416) 603-7500

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Asia Bio-Chem Group Corp.

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