Chai-Na-Ta Announces North American Ginseng Benefits Diabetics.

Business Editors, Food/Health Writers

LANGLEY, British Columbia--(BUSINESS WIRE)--April 10, 2000

Chai-Na-Ta Corp. ("the Company") (TSE: "CC"; OTCBB: "CCCFF") President and CEO, Gerry Gill announced today the breakthrough findings of a clinical study on the use of North American ginseng in treating diabetes. The results of the University of Toronto-St. Michael's Hospital study confirm that North American ginseng is effective in reducing blood sugar in people with and without diabetes.

"This is great news for the hundreds of thousands of North Americans who suffer from this debilitating disease," Gill said. "It is also extremely encouraging for our Company to see the health-enhancing potential of our product conclusively demonstrated."

Chai-Na-Ta, the world's leading producer of North American ginseng, has supported research on the health benefits associated with the product for several years. The Company supplied the North American ginseng samples used in the University of Toronto-St. Michael's diabetes study. The study was jointly funded by the Ontario Ministry of Agriculture, Food and Rural Affairs and Chai-Na-Ta.

The results of the study appeared in the April 9th issue of the Archives of Internal Medicine, a publication of the Journal of the American Medical Association (JAMA). Lead investigator, Dr. Vladimir Vuksan, commented that the findings may have important implications for the treatment and prevention of diabetes, a disease which affects approximately eight per cent of North American adults and is continually rising.

"Although preliminary, these findings are encouraging and indicate that American ginseng's potential role in diabetes should be taken seriously and investigated further," Dr. Vuksan said. "It may also be important in the prevention of diabetes in those who have not yet developed the disease."

The published results are the preliminary findings of a long-term comprehensive clinical study. The study is continuing using the proprietary standardized North American ginseng extract (CNT2000) developed by Chai-Na-Ta. Scientific studies using CNT2000 are also being conducted at the University of British Columbia, University of Alberta and Harvard Medical School.

Chai-Na-Ta Corp., based in Langley, British Columbia, 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.