Chai-Na-Ta Reports Results for Third Quarter Earnings for the Period Ending August 31, 1998.

LANGLEY, British Columbia--(BUSINESS WIRE)--Oct. 27, 1998-- Gerry Gill, President and C.E.O. of Chai-Na-Ta Corp. ("the Company") (TSE:CC)(NASDAQ:CCCFF) announced revenues of $3.0 million and a net loss of $1.4 million, or fully diluted, $0.35 per share for the three-month period ending August 31, 1998. This compares with revenue of $4.5 million and net loss of $2.0 million or fully diluted $0.49 per share for the same period a year ago.

Results for the nine months ended August 31, 1998 continue to show strong year over year improvement, reflecting the success of Chai-Na-Ta's business strategy. Revenues for the nine months totaled $12.8 million, almost double the $6.7 million achieved during the same period in fiscal 1997. Net loss for the nine months was $2.7 million, or fully diluted, $0.68 per share, compared with a net loss of $8.9 million, or fully diluted, $2.20 per share in the previous year. Additional financial details and U.S. equivalent figures are provided at the end of this release.

Sales in the third quarter declined over 1997, but are expected to show a strong recovery in the fourth quarter as a result of orders for the Company's recently developed contamination-free standardized whole ginseng extract powder. Processed product sales for the nine months ended August 31, 1998 increased by 61% over the same period last year, contributing 23% of the Company's revenues in the period.

As the Company enters the fourth quarter of fiscal 1998, farm operations in British Columbia and Ontario are preparing for the fall harvest. After an excellent growing season, a high quality harvest is anticipated, and early sales of the 1998 harvest show indications that North American ginseng prices are beginning to recover from the previous year. At the same time, Chai-Na-Ta has received its first orders to supply contamination-free standardized whole ginseng extract powder to a major US manufacturer of ginseng-based natural supplements. These developments create potential for a strong fourth quarter of fiscal 1998.

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 products, and supplies processed extract powder to manufacturers of value-added ginseng-based products worldwide.

Except for historical information contained herein, the matters discussed in this press release are forward looking statements that involve risks and uncertainties, including but not limited to general business conditions, the successful introduction of new processed products, bulk root prices, general harvest quality, and other risks detailed from time to time in the Company's public filings, annual report, and Form 20-F.

The Company will hold a conference call on Tuesday, October 27, 1998, beginning at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the issues in this release. To participate, please call [phone] (US and Canadian participants only).

Persons unable to attend the conference call may listen to a recorded version by dialling [phone], and entering the reservation number #1738565, followed by the "#" (pound) key, after Tuesday, October 27, 1998 4:00 p.m. Pacific Time (7:00 p.m. Eastern Time).

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                           CHAI-NA-TA CORP.
                  CONSOLIDATED FINANCIAL HIGHLIGHTS
            FOR THE PERIODS ENDED AUGUST 31, 1998 AND 1997
                             (unaudited)

                      Three Months Ended  Three Months Ended
                            August 31        August 31
                        1998       1997    1998     1997
                        Canadian $000    (a)US $000 Equivalents

Revenues                $ 3,024  $4,465   $2,079   $3,248
Loss before taxes       (2,135)  (2,658)  (1,468)  (1,934)
Net loss for the period (1,398)  (1,983)    (961)  (1,442)
Net loss per share
 - basic                $(0.35)  $(0.49)  $(0.24)  $(0.36)
 - fully diluted        $(0.35)  $(0.49)  $(0.24)  $(0.36)
Weighted average
 shares outstanding
  - basic               4,021,553  4,021,553
  - fully diluted       4,021,553  4,021,553


                      Nine Months Ended   Nine Months Ended
                           August 31         August 31
                      1998       1997      1998      1997
                       Canadian $000     (a)US $000 Equivalents

Revenues                $12,834  $6,659   $8,825   $4,844
Loss before taxes       (4,326) (12,854)  (2,975)  (9,350)
Net loss for the period (2,721)  (8,861)  (1,871)  (6,446)
Net loss per share
 - basic                $(0.68)  $(2.20)  $(0.47)  $(1.60)
 - fully diluted        $(0.68)  $(2.20)  $(0.47)  $(1.60)
Weighted average
shares outstanding
  - basic              4,021,553 4,021,553
  - fully diluted      4,021,553 4,021,553
US GAAP primary and
 fully diluted EPS     $(0.74)  $(2.37)   $(0.51)  $(1.72)
US GAAP weighted
 average shares
 outstanding
 - primary/fully diluted 4,021,553 4,021,553

(a) US $ Equivalents

- For period ended August 31, 1998, conversion rate used is
  1.4543 (0.687616);

- For period ended August 31, 1997, conversion rate used is
  1.3747 (0.727431).