CHINA HEALTH LABS & DIAGNOSTICS LTD. ANNOUNCES CONTRACT TO SUPPLY 17 MOBILE
FOOD SAFETY LABS

VANCOUVER, Nov. 23 /CNW/ - China Health Labs & Diagnostics Ltd. ("China Health" or the "Company") (CHO: TSXV), is pleased to announce that it has signed an agreement with the Beijing municipal government, to supply 17 mobile food safety labs.  This order is expected to generate revenue of RMB 34.2 million ($5.3 million).  Most of the mobile labs are scheduled to be delivered in the fourth quarter of 2010 with the balance to be delivered in the first quarter of 2011.

The mobile labs will be used in China to conduct spot tests on food stores and distributors to detect the presence of toxic chemicals and bacteria. 

In 2008, China Health entered the food safety market by installing 17 food testing labs in major food supermarkets in Beijing.  These labs were mandated and paid for by the Beijing municipal government in response to concerns due to the growing number of high profile food safety incidents and the need to improve safety for the Beijing Olympics.  During 2009, the Company developed a mobile lab solution based on the need for on-site rapid testing.

"We are very pleased to build on our successful installation of food safety labs in Beijing supermarkets by supplying the mobile labs to the Beijing municipal government.  One of our key strengths is working with customers to develop products that meet their needs and can deliver reliable long-term results.  This builds strong relationships with our customers, leading to repeat orders and on-going revenues from reagent supply and maintenance," said Wilson Yao, CEO of China Health. "Food safety has become a growing concern in China so municipal governments are allocating more resources and looking for ways to monitor and enforce food safety standards.  With Beijing as our key reference, we plan to expand our food safety business to other cities in China."

China Health intends to expand its business by focusing its efforts on expanding its sales network to three areas where it has proprietary products, limited competition and strong government support: rural diagnostic medical facilities in China, military and emergency services, and food testing applications. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING INFORMATION AND NON-GAAP MEASURES

This press release contains forward-looking statements and information that are based on the beliefs of management and reflect China Health's current expectations.  When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information.  The forward-looking statements and information in this press release includes information relating to the revenue from the mobile food safety order, the scheduled delivery of the mobile safety labs, the use of the mobile safety labs, the expansion of the food safety business to other Chinese cities, and the expansion of the Company's business through its sales network in areas where it has proprietary products, limited competition and strong government support.  The forward-looking information is based on certain assumptions, which could change materially in the future, including the assumption that the order for the mobile safety labs is a binding agreement, the Company will be able to deliver the mobile safety labs as scheduled, the payment for the mobile safety labs will be made within a reasonable period of time and the revenue recognized, the mobile safety labs will be used for the purposes intended, the Company will be able to expand its food safety business to other Chinese cities, and the Company will be able to expand its sales network and business.  Such statements and information reflect the current view of China Health with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.  By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, among others, the risks that the agreement for the mobile safety labs may not be binding, the Company may not be able to deliver the mobile safety labs as scheduled or at all, the payment for the mobile safety labs may not be made within a reasonable time period or at all, the Company may not be able to expand its food safety business to other Chinese cities, and the Company may not expand its business as expected through its sales network in any of the areas in which it has proprietary products, limited competition and strong government support.  China Health cautions that the foregoing list of material factors is not exhaustive.  When relying on China Health's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.  China Health has assumed a certain progression, which may not be realized.  It has also assumed that the material factors referred to above will not cause such forward-looking statements and information to differ materially from actual results or events.  However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

China Health has also included in this press release figures based on orders received, which is a non-GAAP measure.  Readers are cautioned that such a measure is not recognized under Canadian GAAP and should not be construed to be an indicator of performance or liquidity or cash flows.  China Health's method of calculating this measure may differ from the method used by other entities and accordingly China Health's measure may not be comparable to the measure used by other entities.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF CHINA HEALTH AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE.  READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE.  WHILE CHINA HEALTH MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

For further information:

Kim Oishi
Director
Telephone: [phone]
Email: [email protected]