China Peregrine Announces New Chinese Subsidiary.

NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--Dec. 13, 1999--

China Peregrine Food Corporation (OTCBB:CHPF) announced today that it has obtained approval from the Chinese governmental authorities in Shanghai, China to establish a "Free Trade Zone" company in Shanghai's Wai Gao Free Trade Zone.

This new company will be known as "China Peregrine Food Corporation (Shanghai) Co., Ltd." and will be a wholly owned subsidiary of China Peregrine Food Corporation.

Companies registered as Free Trade Zone companies can take advantage of a unique regulatory infrastructure designed by the Chinese authorities to facilitate import/export transactions, including tax and legal compliance, customs and foreign currency exchange. China Peregrine anticipates that its new Shanghai subsidiary will engage in the import and distribution of prepared foods, such as Lance snack foods, and provide ingredients for the production of other branded food products in China for distribution in local markets.

The mission of China Peregrine's new Shanghai subsidiary is to develop the potentially large Chinese market in various fields, including the food industry. Recently, China Peregrine announced the installation of a Western led multi-lingual management team in China, many of whom are seasoned food industry or branded products professionals. The Company will utilize this management team to launch its new Shanghai "Free Trade Zone" subsidiary as well as to supervise the overall management of China Peregrine's business interests in China. This team has direct reporting responsibilities to China Peregrine's Chief Executive Officer and Board of Directors.

According to Mr. Roy Warren, CEO of China Peregrine: "With 1.2 billion people living in China, we agree with many of the surveys that suggest that the food industry is one of the segments that will not give companies false hope of significant market penetration. With our Western management team's extensive experience and contacts in China, we can build on our joint venture experience and expand our business base in China through this new wholly owned subsidiary."

China Peregrine owns 70% of Green Food Peregrine Children's Food Company, Limited, a fifty-year National Joint Venture with China National Green Food Corporation, a wholly owned subsidiary of the Ministry of Agriculture of the People's Republic of China, one of the first-ever approved in China. In addition, China Peregrine owns 52% of Hangzhou Meilijian Dairy Products Co., Ltd. Joint Venture and currently controls and operates dairy facilities in Shanghai and Hangzhou, China. The Company manufactures and distributes traditional Western milk products in these markets. In addition, a preview introduction of Looney Tunes(tm) flavored milk beverages in Shanghai has been completed and a full launch of Looney Tunes(tm) branded products, including pasteurized milks, juices and yogurt drinks, will be rolled out in anticipation of the Chinese New Year.

For more information, visit our Web site at www.chinaperegrine.com.

Looney Tunes is a trademark of Warner Bros., Copyright 1999.

Safe Harbor Under the Private Litigation Reform Act of 1995: 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.