Blue Sky Breakout

[nitetrak]

BTW, Nice news today. Repeal of the Chinese Agriculture Tax to Benefit Eternal Technologies Group, Inc.
Business Wire - January 16, 2006 09:00

HOUSTON, Jan 16, 2006 (BUSINESS WIRE) -- Eternal Technologies Group, Inc. (OTCBB:ETLT) ("Eternal") today announced that the Chinese government has repealed the Agricultural Tax effective January 1, 2006. In essence, this repeals a tax which has existed in China for 2600 years. The policy rational for the repeal of this tax is to provide an additional incentive for agricultural development as the consumption of agricultural products has risen sharply along with the growth in the Chinese economy.

For Eternal, the repeal of the Agricultural Tax is particularly beneficial. The tax holiday which had been granted to the Company expired on December 31, 2005. This repeal will in essence, continue the tax holiday on the Company's agricultural operations and increase its return on the developing project in Hunan Province. It is estimated that the repeal of the tax will save the Company US$3,000,000 to US$3,500,000 during the development stage of the Hunan project alone, thereby reducing the US$37,000,000 dollar cost of the development by a corresponding amount.

"This is very good news for the Company," said Mr. JiJun Wu, Chairman of Eternal Technologies Group Inc. This policy encourages us to continue to invest in agriculture in the near future. Eternal will also study various alternatives to maximize the return on our undeveloped agricultural properties.

About Eternal Technologies

Eternal is a major agricultural genetics and biopharmaceutical R&D firm operating in China with the support of the Chinese Government. Eternal's animal breeding division has a strong asset base, cash position and net income. Eternal has become one of China's leading institutions for biopharmaceutical and biotech research, pure breed cultivation and breed stock production. The Company has secured a key market niche by commercializing gene engineering technologies and providing superior breeding stock, allowing China's citizens the ability to improve their living standards. With the world's largest population, a double-digit national growth rate and entry into the WTO, Eternal Technologies has a playing field set for tremendous opportunity. As a prominent player in the agricultural genetics industry, cash in the bank and an untapped market, Eternal has the potential to become a major player in China's national growth.