Chai-Na-Ta Corp. knows no reason for drop in price of shares.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Nov. 22, 1994-- Management of Chai-Na-Ta Corp. (TSE:CC) (NASDAQ/NMS:CCCFF) (the "company") wishes to advise investors that it knows of no reason why the price of its shares has dropped dramatically in the last two weeks.

While the general index of the Toronto Stock Exchange has fallen as well, the recent trading prices for the company's shares do not reflect the positive results recently achieved by the company.

To review, management confirms that revenues and expenses are on track. It is expected that the company's earnings forecast for the fiscal year of $16 million (28 cents per share) will be met. The company continues to obtain an above average price for its products. Based on current market prices, the crop under cultivation has an estimated value at maturity in excess of Cdn. $150 million.

The recent disclosure on Nov. 8, 1994, of the granting of a pharmaceutical licence in China to a business 85 percent owned by the Chai-Na-Ta Group was a significant milestone in the company's development. Aside from the fact that the licence was obtained much more quickly than normal, the business prospects for this Chinese venture are significantly improved by this licence.

Acceptance of the venture's non-pharmaceutical products in the marketplace will be enhanced as a result of the prestige attached to a manufacturer of pharmaceutical products. Further, the pharmaceutical products will create an additional product line with very high margins to enhance what was already an excellent opportunity.

The company's showroom in Shanghai has opened, thus establishing a base from which to market ginseng root and ginseng-based products at the wholesale level. The significance of the Shanghai showroom is that it is the marketing center from which the company will launch its national distribution program.

It will also service future satellite offices throughout China, with products generated by the Chai-Na-Ta Group's operations in Canada, the United States, Wuxi and Dalian.

The company's North American joint venture, Unique Formulations Inc., has experienced significant increases in sales. Unique Formulations is currently working with nine brokers, and the company has 310 retail accounts in the United States. With its current marketing efforts, Unique Formulations expects to have in excess of 600 U.S. retail accounts by early 1995.

The company believes that these value-added and pharmaceutical products will add significantly to the consumption of ginseng, thereby increasing the demand for its farm production. These new products will be targeted to non-traditional consumer markets, breaking away from traditional sale of ginseng to the middle-aged male consumer through Chinese herbal shops.

This is expected to have the impact of creating new sales from outlets such as hospitals, clinics, department stores, duty-free shops and drug stores, in addition to the traditional herbal shops.

The company appears to be the target of unfounded rumors emanating from individuals who are not taking the time to read the material produced by the company, nor to research the marketplace, nor to give the company a chance through its management to respond to theories about the ginseng industry.

The company welcomes and encourages analysts and writers who wish to discuss the ginseng business in general or any aspect of it in particular to contact Gerry Gill at 604/533-8883.

CONTACT: Chai-Na-Ta Corp., Vancouver

              Gerry Gill, 604/533-8883
                          604/533-8891
              Toll-free (Canada & continental U.S.):
              800/406-ROOT (7668)