American Dairy's CEO Rewarded by QiQiHar City's Municipal Party Committee.

BEIJING -- American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soybean products in China, announces CEO Leng You-Bin has been acknowledged by QiQiHar City as one of the most influential leaders in the city.

On December 31, 2004, the QiQiHar's municipal party committee rewarded Leng for his contributions towards the city's economic growth. American Dairy's processing plants located in Kedong County, China is one of ten counties in QiQiHar City. The company is the county's biggest taxpayer and employer.

Local dairy farmers that benefit and rely upon American Dairy's milk processing facilities are exclusive suppliers of raw milk to the company. The company provides farmers with training by educating them on the most proper methods in raising milk cows.

Although Leng is not involved with the city's political matters, QiQiHar City rewarded Leng with benefits similar to the city's Vice Mayor. One of the benefits that Mr. Leng receives is fully subsidized access to the best medical resources available.

"I never expected to be recognized in this way," said Leng, CEO of American Dairy, "I feel much honored. However, we are only beginning; we hope to impact QiQiHar in more and more ways."

In 2004, American Dairy completed a new plant in Kedong County capable of processing soybean and rice. The new soybean processing plant will be capable of producing 5,000 tons of soybean powder annually and help American Dairy become a major contributor in the $1.5 billion industry in China which is currently growing at 20% each year. The rice cereal market on the other hand, is a $1 billion industry in China, and American Dairy looks to be a significant player in that market in the near future.

Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners, and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws and defects in products and services and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time.