China Peregrine, Renamed China Premium Foods, Inc., and to Acquire Mandarin Fine Foods Company in Bid to Enhance Its Distribution Network.

Business Editors

N. PALM BEACH, Fla.--(BUSINESS WIRE)--Feb. 1, 2000

China Peregrine Food Corp. (OTCBB:CHPF) announced today that the Company is changing its name to CHINA PREMIUM FOODS, INC., in order to reflect the reorientation of its business from milk production to distribution of quality foods, as a means of maximizing its capital resources and leveraging the impact of its Looney Tunes(tm) license agreements. Management does not anticipate a change in the company's present stock symbol CHPF.

Moving forward with its previously announced plans to reconfigure its distribution system, China Premium has reached an agreement in principle to acquire a majority interest in Mandarin Fine Foods Company of Beijing, China. Mandarin distributes food and beverage products to most of the four- and five-star hotels in China, including Hilton, Holiday Inn, Sheraton, Marriott and Regency, with 1999 net sales of US$8.1 million and net profits of US$611,000. The acquisition is part of our plans to reconfigure our business in China by emphasizing the distribution of food products rather than the production of such products. The current plans call for the eventual utilization of Mandarin as a springboard to access other markets for high quality food and beverage products in China, as well to broaden the product array in its distribution channels.

The agreement in principle calls for a 56.25% interest in Mandarin to be acquired for the equivalent of $4.5 million. Half of this amount will be in China Premium Foods common stock valued at $1.75 a share, or $2.25 million. The remainder will be in cash or China Premium stock, depending on the value of the latter at June 30, 2000. If the deal is consummated as an all-stock transaction, Mandarin would own a maximum of 16.6% of China Premium Foods common stock outstanding. This agreement in principle is subject to the Company's completion of its due diligence and the approval and execution of a definitive acquisition agreement.

Mr. Li Zhiyun, founder and President of Mandarin Fine Foods, stated: &uot;The food distribution market in China is ready for a rapid development, not only in size but more in quality and professionalism. China's entry into WTO will make that happen faster. The focus and effort of China Premium Food Corporation to develop a quality distribution system throughout China make it an ideal candidate for partnership with Mandarin Fine Foods Company. Together, we can create a predominant fine food distribution network in China.

The Mandarin acquisition would as well add considerable critical mass to China Premium's overall business portfolio, which also includes a licensing agreement with the second largest dairy in the Shanghai metropolitan area, QJ, which will begin producing and distributing the Company's Looney Tunes(tm) flavored and enhanced-white premium milk products in the upcoming weeks; and a 52% interest in Hangzhou Meilijian, the largest dairy in the city of Hangzhou, located about 110 miles southwest of Shanghai. These two metropolises have an aggregate population of over 22 million.

Longer term, China Premium intends to maximize the effectiveness of its distribution system throughout China by introducing snack foods and other high-demand gourmet products, and by entering into other strategic production and distribution relationships for its Looney Tunes(tm) premium milk products that permit maximum diversification of geographical reach. A key element in the Company's growth strategy is to build solid consumer awareness for its high quality products, with special emphasis on uniformity of marketing and advertising in order to effectively build a national Chinese brand that transcends provincial borders.

Looney Tunes is a trade mark of Warner Bros., Copyright 1999 &2000

Safe Harbor Under the Private Litigation Reform Act of 1999: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties as may be detailed in the Company's filings with the Securities and Exchange Commission.