Major Distribution Agreements
Signed by Rocky Mountain (Fuzhou) Drug Co. Ltd.
VANCOUVER, British Columbia--(BUSINESS WIRE)--May 3, 2000--Rocky
Mountain Ginseng, Inc. (Pink Sheets:RMGG) is pleased to announce a
major distribution agreement was signed in Los Angeles April 12, 2000
between Michael Shen, President of Glusa Inc.("Glusa") and Brian Hodge
President of Rocky Mountain (Fuzhou) Drug Co. Ltd. giving Rocky
Mountain the exclusive right to distribute in China a total of 20
different kinds of healthy food products produced in the USA.
Mr. Hodge stated this agreement satisfies a major need to enable
Rocky Mountain to provide a broad product mix to its distribution
network in China. Many of the company's distributors in China have
requested this service.
The Initial General Distribution Agreement with Glusa gives the
Company exclusive rights for eight years and is renewable upon
negotiation. The company has taken action to have the products
approved by provincial and federal regulatory authorities in China.
The Chinese company will obtain these rights to market Glusa's
products.
Glusa's president, Mr. Shen, commented that his company is
currently establishing or has established distribution networks in
South Korea, Taiwan, Hong Kong, Singapore and Thailand and has several
such agreements in place or pending in Europe and the Middle East. He
added, that in the future, as Asian markets grow, he may enter an
agreement to have Rocky Mountain manufacture the goods under licence
in China.
According to Mr. Hodge it will take nine to twelve months to gain
the necessary product approvals in China. Once these approvals are
received the company must buy 50,000 units of each product within the
next six months and an additional 500,000 units of each over the
following six-month period.
Prior to departing for North America to negotiate with Glusa Inc.
Mr. Hodge and Mr. Jiang signed several more distribution agreements in
China. On April 5, 2000 a distribution agreement was signed between
Rocky Mountain and Mr. Lin Shun Chang, President of Jiang Su Sun Chang
Co. Ltd. in Wuxi in Jiangsu Province. Mr. Lin's company services 261
supermarkets in Wuxi and Suzhou. Under this agreement they will
warehouse Rocky Mountain's goods and will let the company set up its
own marketing office in their facilities. This office is being staffed
by sales representatives transferred from Rocky Mountain's Fuzhou
office.
On April 6, 2000 the company opened in Quanzhou a separate sales
office staffed by five sales representatives to service customers not
covered by it's agreement with the Qi Long trading company in
Quanzhou.
On April 7, 2000 Mr. Jiang Shao Shu entered into agreement with
the Sa Xin Drug Co. Ltd. in Xiamen. This company services 150
supermarkets in Xiamen. The company has opened a sales office in
Xiamen staffed by two persons and expects to have it's products in 350
to 400 outlets in Xiamen, Zhangzhou, Longhai, and Zhangpu Cities by
mid May.
About Rocky Mountain Ginseng, Inc.
Rocky Mountain Ginseng, Inc.'s head office is located in British
Columbia, Canada. The company exports American ginseng to China as
well as manufactures and processes America ginseng products in China.
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 Fuzhou Fujian Drug Company
located in China in February 1999. 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 completed the construction of its new office
and manufacturing facility in the city of Fuzhou and is currently
producing traditional ginseng products for the Chinese Market. The
Chinese factory employs 32 people in processing, sales, accounting and
management. Rocky Mountain (Fuzhou) Drug Co. Ltd. is the first wholly
owned Canadian Company in the Fujian province.
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Act of 1995. Expression of future goals and similar
expressions reflecting something other than historical fact involve
risks and uncertainties. The actual results the company achieves may
differ materially from any forward-looking statements due to such
risks and uncertainties.
--30--brm/se*
CONTACT: Rocky Mountain (Fuzhou) Drug Co. Ltd.
Brian A. Hodge, (86) 591-379-7969
e-mail - rockymt@public.fz.fj.cn
Website - www.RMGGInvestor.com
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