Emerald Dairy Inc fka EMDY

[Harleyman]

News for 'EMDY' - (Emerald Dairy Obtains AQSIQ Certification on Facilities and Provides 2011 Guidance Management expects 2011 revenues to grow 27% to approximately $70 million, adjusted net income to grow 30% to approximately $10.5 million)


HARBIN, China, April 4, 2011 /PRNewswire via COMTEX/ -- Emerald Dairy, Inc.
(OTC Bulleting Board: EMDY) ("Emerald Dairy" or "the Company") a leading
producer and distributor of infant and children's formula products, the Company
received final certification by the General Administration of Quality
Supervision, Inspection and Quarantine of the People's Republic of China (AQSIQ)
for its Bei'an and Hailun production facilities. Additionally, Emerald Dairy
provided 2011 guidance for the 2011 year.

Beginning in October 2010, Emerald Dairy and including all infant milk formula
and dairy producers in China, were subject to production certification by the
General Administration of Quality Supervision, Inspection and Quarantine
("AQSIQ") of the People's Republic of China. The PRC government is conducting
these reviews to ensure high food safety standards for all infant milk formula
and dairy products in China. Per the regulation, all inspections would be
concluded by the end of 2010, with renewal permits issued no later than March
2011. Emerald Dairy's recently completed Hailun facility was approved for full
production of 10,000 tons of Xinganglig(R) and the Company's Xinganling(R)
Organic formulas. The Company's Bei'an facility, where it produces Xinganling(R)
branded formulas and Yi Bai(R) formula, was also inspected and received
operational certification on March 23, 2011.

Emerald Dairy has a total of 19,000 tons newly certified capacity in 2011 versus
10,000 tons in 2010. The Company will focus its sales efforts on its
high-margin, Xinganling(R) infant formulas which include infant formula milk
powder, soybean milk powder and rice powder products. Revenue for 2011 is
forecast to be around $70.0 million, a 27% increase over 2010. The Company
expects to produce and sell approximately 15,000 tons of products in 2011
compared to 10,050 tons in 2010. Adjusted net income is forecast to be $10.5
million.

"Our re-certification process by the AQSIQ was a critical milestone," began
Yongshan Yong, Chairman and CEO of Emerald Dairy. "As a Company that has
implemented best product processes since we began operations in 1989, we
welcomed the renewed focus on high production standards in the industry. As one
of the companies in China that experienced no production restrictions from
several scandals which have impacted our industry, we support any and all
measures by agricultural and consumer food authorities that enhance the quality
of milk based products and manufacturing methods. The industry is growing at 20%
a year and our own market research has shown demand for formulas continue to
outstrip supply. During the past few years, this imbalance has driven a number
of smaller, undercapitalized startup formula companies into the market, many
which do not meet the high safety and production standards that Emerald Dairy
and other larger manufacturers adhere to. We expect the certification process to
eliminate many of these companies which will create more sales opportunities for
us as we move into 2011. Our growing brands in the value and mid-tier
categories, combined with acceleration in the number of newborns in our target
tier 3 and 4 cities, give us confidence in our ability to sell out all existing
capacity by the end of 2011 and meet our guidance for the year."

About Emerald Dairy

Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a
producer and distributor of infant and children's formula, milk powder and
soybean products in the People's Republic of China. The Company's products are
sold under two brand names -- "Xing An Ling," designed for middle and high-end
customers, and "Yi Bai," designed for low-end customers. Emerald Dairy's
products are distributed throughout 20 provinces in mainland China and sold in
over 6,000 retail points. For further information about Emerald Dairy Inc.,
please visit the Company's website at http://www.emeralddairy.com/

About Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements, which statements
are prepared and presented in accordance with GAAP, we use the following
non-GAAP financial measures: non-GAAP adjusted net income, and non-GAAP adjusted
EPS. The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP. The Company uses
these non-GAAP financial measures for financial and operational decision making
and as a means to evaluate period-to-period comparisons. Management believes
that these non-GAAP financial measures provide meaningful supplemental
information regarding the Company's performance and liquidity by excluding
certain expenses and expenditures that may not be indicative of "recurring core
business operating results", meaning operating performance excluding non-cash
amortization charges for intangibles. The Company believes that both management
and investors benefit from referring to these non-GAAP financial measures in
assessing performance and when planning, forecasting and analyzing future
periods. These non-GAAP financial measures also facilitate management's internal
comparisons to historical performance and liquidity as well as comparisons to
competitors' operating results. The Company believes these non-GAAP financial
measures are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its financial and
operational decision-making and (2) they are used by our institutional investors
and the analyst community to help them analyze the health of the business.