Chai-Na-Ta Retains Sunrise Securities as Financial Advisor.

LANGLEY, British Columbia--(BUSINESS WIRE)--July 8, 1998-- Chai-Na-Ta Corp. (NASDAQ:CCCFF)(TSE:CC) President and CEO, Gerry Gill announced today that the Company has retained Sunrise Securities, a boutique New York merchant banking firm specializing in the "healthy living" sector, to act as its financial advisor. The purpose of the appointment is to assist Chai-Na-Ta in raising working capital and accelerating its move into the North American nutraceutical industry.

"Chai-Na-Ta is shifting its focus," Mr. Gill explained. "We are moving away from our traditional role as a farm operator and supplier to ginseng distributors in China, and pushing ahead with our plans to enter the multi-billion dollar North American nutraceutical industry where there are potentially greater growth opportunities. Our relationship with Sunrise Securities is a positive step in this direction." He added, "This is an important time for Chai-Na-Ta. Our increasing focus on the nutraceutical industry will place heavy demands on our management team and Board of Directors. As a result, it is our intention, over the next few months to bring on new directors who are experienced in this area."

In support of this initiative, Senator Jack Austin, a Chai-Na-Ta Director since 1996, has resigned from the Board of Directors. Commenting on Senator Austin's resignation, President Gerry Gill said, "We are grateful for the efforts that Senator Austin has made on Chai-Na-Ta's behalf during his time as a Director. In view of his commitment to Senate Business, we appreciate the decision he has taken, as it opens the way for us to introduce a new member to our Board of Directors at this very important time in Chai-Na-Ta's growth." Mr. Ed Odishaw, a recent appointment, also resigned.

The nutraceutical industry is one of the fastest growing industries in North America. The term "nutraceutical" refers to any "functional" food, including vitamins, health foods and dietary supplements. Sunrise Securities is well known in the industry and has a track record of assisting nutraceutical companies to be successful.

Gerry Gill commented, "Chai-Na-Ta has been preparing to enter the nutraceutical business for some time through our work on CNT 2000, a standardized version of North American ginseng. Now that we have the backing of Sunrise Securities, we are well positioned to turn Chai-Na-Ta's expertise in producing standardized North American ginseng into a highly profitable business."

Chai-Na-Ta Corp. is the world's largest grower of North American ginseng and a worldwide distributor of ginseng and other herbal health products.

This press 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.

   CONTACT: Chai-Na-Ta Corp.
             G.A. (Gerry) Gill
             or Rob Miller
             604/533-8883 or 1-800-406-7668
             604/533-8891 (Fax)