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[Bobwins]

ADIY American Dairy purchasing more capacity. This should be a big plus by adding 70% more capacity. Growth has been great so far but this will solidify their position and give them more dairies to supply them with raw milk. ADIY made .17 diluted q1. 121% increase in net on 73% increase in gross to $14 million.

Wednesday May 25, 5:00 am ET


BEIJING--(BUSINESS WIRE)--May 25, 2005--American Dairy, Inc. (PCX:ADIY - News), one of the leading producers and distributors of milk powder and soybean products in China, announces that an agreement has been reached with Royal Numico N.V. on the purchase of its milk powder processing plant and its equipment in China to Heilongjiang Feihe Dairy Industry Co., Ltd. -- a subsidiary of American Dairy, Inc. -- for a total consideration of USD $7.3 million.
This milk processing plant acquisition also includes 19 raw milk collection stations.

American Dairy believes that the production capabilities of this plant will increase its daily milk powder production capacity by approximately 60%, or 270 tons of raw milk per day.

Closing date is scheduled for June 8, 2005.