Rocky Mountain ( Fuzhou ) Drug Co. Ltd. Enters
Long-Term Supply Arrangement With Kettle Mountain Ginseng Ltd.
VANCOUVER, British Columbia--(BUSINESS WIRE)-February 5, 2001--The Board of Directors of Rocky Mountain Ginseng, Inc. (Pink Sheets:
RMGG) are pleased to announce that Rocky Mountain ( Fuzhou ) Drug Co. Ltd. has entered into a long term supply arrangement with one
of Canada's largest ginseng farms, Kettle Mountain Ginseng Co. Ltd. („Kettle Mountain‰). Kettle Mountain will source, process to
Chinese standards, and ship North American ginseng root purchased from producers in British Columbia, Ontario, and Wisconsin for the
Chinese market.
Brian Hodge, president of RMGG, stated several factors influenced the company's decision to enter into this arrangement.
Traditionally, North American grown ginseng entered south China from Hong Kong. Identity of the origin of the root was often lost,
and sometimes the ginseng root was mixed with lower quality ginseng grown in north-east China. Over the past three months the
Federal Government in China has taken stringent measures to control the entry of ginseng into China.
„This resulted in a major upheaval in how ginseng root will enter China in future,‰ stated Mr. Hodge.
North American grown ginseng root can now only be legally imported into China by companies having a specific drug license that
authorizes this activity.
„Most traditional importers of root do not have this type of license and it is extremely difficult, costly, and time consuming to
get one. Few drug companies have such a license,‰ said Mr. Hodge.
As reported in the December 28, 2000 news release, RMGG has satisfied all the criteria under China‚s stringent new drug company
legislation. Rocky Mountain had its ginseng importing license renewed for 5 years, giving the company an excellent opportunity to
import and market root. This allows RMGG to service a void left by the reduction and closures of the traditional way of importing
ginseng root into China.
It takes four years for a ginseng crop to mature. Hodge added that declining prices at the farm gate for ginseng root has resulted
in a significant decline in new plantings. It is imperative for the well being of the company, and its customers, to have an
ongoing supply of root.
Under the terms of the arrangement with Kettle Mountain and RMGG, Kettle Mountain will be responsible for supplying and maintaining
the quality standards of root sold to Rocky Mountain. While Kettle Mountain has significant acreage of its own, it will also
purchase ginseng root from other producers and prepare them for export from its facilities in British Columbia. All of Kettle
Mountain supplied ginseng root will be marketed to the wholesale and retail levels in China under the Rocky Mountain patented
ginseng brand.
Kettle Mountain will also provide Rocky Mountain (Fuzhou) Drug Co. Ltd. with a revolving line of credit. As well, they will assist
Rocky Mountain in sourcing additional funding to help in financing this expanded market opportunity.
„The first shipment of ginseng under this new arrangement is enroute to China now. A continual supply of competitively priced, hig
quality branded ginseng root will enable Rocky Mountain to become one of China's major importers of ginseng root from the west,‰
concluded Brian Hodge.
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 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.
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.
CONTACT INFORMATION
Rocky Mountain (Fuzhou) Drug Co. Ltd.
Brian A. Hodge, President
(86) 591-379-7969 (phone)
e-mail: rockymt@public.fz.fj.cn <mailto:rockymt@public.fz.fj.cn> Website: www.RMGGInvestor.com |
