American Dairy Inc. Supports Government Efforts.

HEILONGJIANG PROVINCE, China -- American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soybean products in China, supports the government's endeavor to increase its investment in agricultural development projects, in a bid to improve agricultural production capacity, promote agricultural restructuring, and raise farmers' incomes.

"China's Ministry of Agriculture and Ministry of Finance's efforts to educate farmers and find new ways to raise investments for new projects, demonstrates the government's commitment to continue expanding our industry and China's economic growth," said Leng You-Bin, CEO of American Dairy, Inc.

According to James Wolfensohn, World Bank President, "The Chinese have gained achievements in only 20 years which would have take many other countries two centuries to accomplish." China's reported GDP growth of 9.8% in the first quarter, 9.6% in the second and 9.1% in the third quarter of 2004.

China is eager to expand and court the world. During the past 24 years when China implemented reform and its "Open Door Policy," China has developed at an incredible speed in absorbing foreign investment and has made great achievements attracting the world's attention. Companies such as Coca-Cola (NYSE:KO), McDonald's (NYSE:MCD), General Electric (NYSE:GE) and General Motors (NYSE:GM) have invested in China because they expect China to be a major growth area for their businesses.

In the last ten years, $400 billion to $500 billion in foreign direct investment has flowed into the country while many investors have enjoyed double-digit returns. For example: China Netcome reportedly had been expecting to raise $1.5 billion through listings in New York and Hong Kong. Other public Chinese companies include: China Automotive Systems, Inc. (NASDAQ:CAAS), China Digital Wireless, Inc. (OTCBB:CHDW), Euro Tech Holdings (NASDAQ:CLWT), LJ International, Inc. (NASDAQ:JADE), Tiens Biotech Group (USA) Inc. (OTCBB:TBGU) and Pacific Net, Inc. (NASDAQ:PACT).

China has become an investment hotspot contributed by:

1) China's 1.2 billion people, the greatest population of any country on earth, have the potential to be the world's largest consumer market. A growing middle class, with a high rate of savings, is investing in China's dynamic new private sector and its stock market.

2) With dramatic growth rates over the past decade, two to three times those of the U.S. and Europe, China's awakening capitalism offers investors a rare opportunity for extraordinary capital returns.

3) China's special economic zones and encouragement of foreign ventures support international investment and trade. China increasingly influences commerce throughout Southeast Asia, creating investment opportunities in expanding Chinese companies and in other Asian firms that trade with them.

4) Now that the Chinese have witnessed the powerful images of Western wealth, the tide of change is not likely to be turned back. The millions of Chinese who have been exposed to an affluent lifestyle are eager to educate themselves and work hard to be able to take part in it.

5) While investing in China involves special risks inherent to emerging foreign markets, the potential for economic growth is tremendous. With higher risk, there is also a higher potential for growth.

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.

1. http://www.china.org.cn/english/2003/Aug/72915.htm

2. http://www.chinadetail.com/china/investment/why/01.htm

3. http://www.usfinds.com

4. http://www.china-funds.com/

5. http://www.usfunds.com