Chai-Na-Ta Corp. Reports 2002 Year-end Results.

Business Editors/Health/Medical Writers

LANGLEY, British Columbia--(BUSINESS WIRE)--March 14, 2003

Chai-Na-Ta Corp. (OTCBB:CCCFF) (TSX:CC) today reported its financial results for the year ended December 31, 2002.

Revenue rose 15% to $16.0 million in 2002 from $13.9 million in the prior year. Net earnings rose sharply to $0.3 million ($0.02 per basic share) in 2002 from a net loss of $2.2 million ($0.15 per basic share) in 2001.

Selling, general and administrative expenses totaled $1.7 million in 2002, or 11% of sales, a substantial improvement over the prior year's figure of $2.9 million, or 21% of sales. The Company's results for 2001 include inventory write-downs of $1.6 million.

Gross margin decreased from 16% of sales in 2001 to 10% in 2002, as the 2001 harvest in British Columbia was hard hit by rust. Rust is mainly an aesthetic problem that influences prices.

Farming operations produced 956,996 pounds of root in 2002, a 2% decrease from the prior year's harvest of 975,577 pounds. The Company harvested 359 acres averaging 2,666 pounds, down from the 2001 harvest of 346 acres and an average yield of 2,816 pounds.

"This decline was due to a lower yield from the spring harvest in British Columbia and an unprecedented series of frosts in mid-May that affected the entire industry in Ontario," said William Zen, Chairman and Chief Executive Officer. "Nevertheless, 2002 was a good year for Chai-Na-Ta, as we exceeded our forecast by returning the Company to profitability ahead of schedule, while making great strides in reducing overhead expenses and debt, and increasing operating efficiency."

Chai-Na-Ta's realized average selling price in 2002 softened to about $13 per pound from about $14 in the prior year. Prices were highest for 2002 in the fourth quarter - averaging approximately $17 a pound - based on the sale of a portion of the fall crop.

"The fourth quarter was the key to our much improved financial performance in 2002. We expect to sell most of our remaining 2002 harvest root this year, along with some of our 2003 crop, and we believe that our average selling price will at least match the level of the 2002 fourth quarter," Mr. Zen said.

"North American ginseng root prices should strengthen as supply falls, based on decreased plantings by fewer growers, as well as the industry-wide frost damage in May, which will impact the market over the next several years," Mr. Zen continued. "We expect that Chai-Na-Ta's net earnings will rise in 2003 and that the Company will be profitable on an operating earnings basis."

Interest and financing charges fell about 94% in 2002 from the prior year's level, as bank borrowings declined due to cash flow improvement.

The cash surplus from operations was $5.8 million at year-end 2002 compared to a surplus of $3.0 million in 2001. Chai-Na-Ta's working capital position at December 31, 2002 was a surplus of $12.1 million compared to a surplus of $10.0 million a year ago.

2002 fourth quarter

Revenue nearly doubled to $3.3 million in the 2002 fourth quarter from $1.7 million in the quarter ended December 31, 2001. Net earnings increased to $0.7 million ($0.05 per basic share) in the 2002 fourth quarter from a net loss of $1.8 million ($0.13 per basic share) in the prior year period. A $1.6 million inventory write-down was recorded in the 2001 fourth quarter.

Gross margin rose to 32% of sales in the fourth quarter of 2002 from 4% in the 2001 period.

Selling, general and administrative expenses declined to $0.4 million (13% of revenue) in the 2002 fourth quarter from $0.6 million (34% of revenue) in the fourth quarter of 2001.

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 processed material for the manufacture of value-added ginseng-based products.

This news release contains forward-looking statements that reflect the Company's expectations regarding future events. 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.

                           CHAI-NA-TA CORP.
                 CONSOLIDATED FINANCIAL HIGHLIGHTS
          FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001

                       Three Months Ended      Three Months Ended
                  December 31   December 31 December 31  December 31
                         2002          2001        2002         2001
Fourth Quarter
 Summary                    Canadian $000     (a)US $000 Equivalents
Revenue              $  3,328      $  1,661    $  2,119     $  1,072
Earnings (Loss)
 before taxes             623        (1,845)        397       (1,191)
Net Earnings
 (Loss) for the
 period                   684        (1,845)        436       (1,191)
Earnings (Loss)
 per share
   - basic               0.05         (0.13)       0.03        (0.08)
   - fully diluted       0.02         (0.13)       0.01        (0.08)
Weighted average
 shares
 outstanding
   - basic         14,264,508    14,264,508  14,264,508   14,264,508
   - fully diluted 34,663,657    14,264,508  34,663,657   14,264,508

                            Year Ended           Year Ended
                  December 31   December 31 December 31 December 31
                         2002          2001        2002         2001
Annual Summary              Canadian $000     (a)US $000 Equivalents
Revenue              $ 16,017      $ 13,886    $ 10,199     $  8,965
Earnings (Loss)
 before taxes               2        (2,157)          1       (1,393)
Net Earnings
 (Loss) for the
 year                     334        (2,157)        213       (1,393)
Earnings (Loss)
 per share
   - basic               0.02         (0.15)       0.01        (0.10)
   - fully diluted       0.01         (0.15)       0.01        (0.10)
Weighted average
 shares
 outstanding
   - basic         14,264,508    14,264,508  14,264,508   14,264,508
   - fully diluted 34,663,657    14,264,508  34,663,657   14,264,508

(a)US $ Equivalents   - for the period ended December 31, 2002
                        conversion rate used is 1.5704 (0.6368)
                      - for the period ended December 31, 2001
                        conversion rate used is 1.5489 (0.6456)