[2] Chai-Na-Ta Creditors Back Financial Restructuring, Company Announces Major Investor.

Business Editors

NOTE TO EDITORS: In the press release that was sent earlier

today for Chai-Na-Ta, there was a small portion

of text missing in the eighth graph. Following

is a corrected version in entirety.

LANGLEY, British Columbia--(BUSINESS WIRE)--April 20, 2000

Chai-Na-Ta Corp. (TSE:CC) (OTCBB:CCCFF) President and CEO, Gerry Gill, announced today that its general and secured creditors have approved Chai-Na-Ta's financial restructuring plan.

Chai-Na-Ta (the "Company"), the leading producer of North American ginseng, filed for creditors' protection under the Companies' Creditors Arrangement Act (CCAA) in January, 2000. Today, the Company was successful in obtaining the necessary support of 50 per cent plus one of the voting creditors and two-thirds of the financial backing at a general creditors meeting.

The Company has also received the backing of its secured creditor John Hancock Life Insurance Company. John Hancock have reduced their $23.9 million loan to a $10 million loan and $13.9 million in non-voting convertible preferred shares, at a conversion price of $0.6804 per share, resulting in 20,399,149 non-voting preferred shares. The preferred shares are convertible into common shares on a one-for-one basis. The interest rate on the balance of the loan was also reduced from 18% to 10.6% per annum.

Gill also said Chai-Na-Ta has entered into a subscription agreement with Road King Infrastructure Limited for a $5 million equity investment at a conversion price of $0.6804 per share, resulting in 7,348,740 common shares in the Company. Road King's investment will give it just over 50% voting control of the Company on an undiluted basis.

Road King, a Hong Kong Exchange-listed company, is a major investor and operator of toll roads in China, with approximately CDN$1 billion in investments. Road King's 1999 revenue was CDN$125 million, with reported profits of CDN$116 million. Road King also has a subsidiary, Herb King Life Science Enterprises Ltd., which has a traditional Chinese medicine company in China. Their proven business experience and contacts in China represent excellent opportunities to access further distribution networks and new working capital - a strategic fit for the Company's continuing operations.

"This is obviously great news for our operations, our shareholders and the employees of our Company," Gill said today. "With the restructuring program, this new investment, and a solid strategic partner, our Company will be one of the strongest financially-structured companies in the industry."

The new financial plan must still be approved by the TSE, the courts and Chai-Na-Ta shareholders at the April 25th Annual General Meeting. Gill expects the new plan will be supported by the shareholders. The subscription agreement with Road King must also be accepted at the AGM and approved by the TSE.

Under the financial restructuring proposal, all creditors with an investment of $1,500 or less are guaranteed a 100 per cent return. All other creditors, up to $25,000, are to receive 10 per cent of their investment in cash to a maximum of $2,500, and 15% of the balance of monies owing in excess of $25,000 in common shares issued at book value, at the Company's last fiscal year-end of November 30, 1999, of CDN$.6804 per share. These common shares will have a one year hold period from trading.

Chai-Na-Ta's financial difficulties have been influenced by historically-depressed bulk prices for North American ginseng. Crop prices dropped to a record low of CDN$12 per pound in 1999. The Company believes the market will rebound this year as smaller producers cease operations and the industry consolidates. Despite an industry record harvest in 1999, almost all of last year's harvest has been purchased - a sign that demand is continually rising.

"We see a tremendous market opportunity for our Company in the very near future and with our new financial plan in place, we are ideally positioned to realize our goals," Gill said.

Under the financial restructuring proposal, the Company will reduce its debt by approximately $22 million. Assets at the Company's last fiscal yearend of November 30, 1999 were over $46 million.

Chai-Na-Ta is the world's largest supplier of North American ginseng. The Company farms, processes and distributes North American ginseng as bulk root, and supplies standardized extract powder for the manufacture of value-added ginseng-based products.

This news release contains forward-looking statements that reflect the Company's expectations regarding future event. These forward-looking statements involve risks and uncertainties, and actual events could differ materially from those projected. Such risks and uncertainties include, but are not limited to, the success of the Company's ongoing research programs, general business conditions, and other risks as outlined in the Company's periodic filings, Annual Report, and Form 20-F.