Rocky Mountain Ginseng (fka RMGS)

[jmhollen]

ROCKY MOUNTAIN GINSENG, INC.'S SUBSIDIARY, ROCKY MOUNTAIN (FUZHOU) DRUG CO., LTD., ANNOUNCES MAJOR BUSINESS EXPANSION

August 20, 2001 Vancouver, Canada - Rocky Mountain Ginseng, Inc.'s (Pink Sheets: RMGS) Company President, Mr. Brian Hodge, announced today that the company is embarking on a 4 year, 1,000 retail store expansion program. It is expected that one-third of the stores will be company-owned. The company is actively seeking franchisees for the remaining two-thirds of the store expansion program.

Mr. Hodge stated that having a production facility and available nutritional supplements (known as healthy food products in China) combined with the right to establish company-owned stores and franchised stores anywhere in China has prompted the company to enter the retailing field in a major way. Profit margins are significantly higher and inventory financing is much lower than in wholesaling he said.

Establishment of a solid base of retail stores will provide a marketing network and enable the company to seek alliances with nutritional supplement manufacturers worldwide. With China's forthcoming entry into the WTO it will be easier for foreign companies to enter the Chinese market.

ABOUT ROCKY MOUNTAIN GINSENG, INC.

Rocky Mountain Ginseng, Inc.'s head office is located in British Columbia, Canada. The Company exports American ginseng to its facilities in Fuzhou, China where it manufactures and processes America ginseng products. Rocky Mountain Ginseng, Inc. holds exclusive world processing and distribution rights to several innovative value added ginseng products developed in North America.

Rocky Mountain Ginseng, Inc. purchased a drug manufacturing facility in February 1999, now known as Rocky Mountain (Fuzhou) Drug Co. Ltd. This acquisition included all necessary drug and hygiene licenses allowing the Company to import, export, manufacture and distribute ginseng products in all provinces of China. The company has also recently obtained the right to
establish company-owned stores and franchised stores anywhere in China.

The Company currently produces traditional ginseng products for the Chinese Market, which includes selling to its wholesale customers and through its retail stores, with the Chinese factory employing 42 people in processing, sales, accounting and management. Rocky Mountain (Fuzhou) Drug Co. Ltd. is the first wholly owned Canadian Company in the Fujian province.

Contact Information:
PMR & Associates, LLC
Pat Rost, 760-942-0015
e-mail: [e-mail]

Rocky Mountain (Fuzhou) Drug Co. Ltd.
Brian A. Hodge, President
(86) 591-379-7969 (phone)
e-mail: [e-mail] Website: http://www.RMGGInvestor.com

.