American Dairy Announces the Arrival of New Milk Cows.

HEILONGJIANG PROVINCE, China -- American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soybean products in China, announces the arrival of new milk cows imported from Australia and New Zealand.

$12 million was granted by the Kedong County government to supply the importation of cows to local dairy farmers. American Dairy, Inc. has exclusive rights to the milk produced by these newly imported cows. The company's team of specialists will educate local dairy farmers in properly raising these new cows.

"The Chinese government is committed to improving the nation's agriculture," said Roger Liu, CFO of American Dairy, "Kedong County government has agreed to allow local dairy farmers five years to repay the grant, interest free."

As a result, the number of milk cows under contract for American Dairy increases from 13,000 to 30,000. In 2005, the 17,000 additional cows are projected to produce 100,000 tons of raw milk.

Compared to domestic milk cows, imported cows have a much higher ability to produce milk; 6 tons and 3.5 tons of raw milk per year, respectively. In addition, imported cows can be milked for 10 lactation seasons while domestic cows can only be milked for eight.

"By 2006, we expect the new milk cows to supply an additional 300 tons of milk per day," stated Leng You-Bin, chairman and CEO of ADIY, "our daily production of milk should increase by 300%."

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 at home and abroad, 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.