China Peregrine Assumes Control of Chinese Dairy; Appoints New Executive V.P.-China.

WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Sept. 23, 1998--China Peregrine Food Corp. (OTC BB:CHPF) is pleased to announce that, in accordance with its previously announced acquisition agreement, it has assumed operating control of The Meilijian Dairy Joint Venture, located in Hangzhou, China. Hangzhou is a market with a population of approximately six million. The Meilijian Dairy JV has about an 80% share of the fresh milk in the Hangzhou marketing area. The company controls a 52% stake in the dairy. The CEO of China Peregrine, Mr. Charles Beech, has been named the Chairman of the Board of Hangzhou Meilijian, and Mr. Roy Warren and Mr. Dominic Tang, President and Executive Vice President of China Peregrine respectively, have been named to the Board of Directors of the dairy.

Separately, Mr. Dominic Tang recently has been appointed to the position of Executive Vice President of China Peregrine. In this capacity, Mr. Dominic Tang will have overall responsibility for the interest of China Peregrine in China. He has extensive experience in many countries in Asia. Mr. Tang served in senior management positions with the following companies in China: SEB Asia, Ltd., a $2 billion small consumer electronic appliance manufacturer; Shanghai Oral-B Ltd., where he led local efforts for this subsidiary of Gillette; Beijing Watsons Distilled Water Co., Ltd.; and Pfizer Asia.

Mr. Roy Warren, President of China Peregrine, said, "Since completing successful test marketing of our Happy Family Brand in Shanghai, one of the largest urban areas in China, we are aggressively moving forward to acquire additional dairy operations available to us through our joint venture contract with The Ministry of Agriculture of China. Now that we are implementing our expansion strategy in China, the addition of Dominic Tang to our executive management team could not come at a better time. Mr. Tang's proven track record in managerial, marketing and local expertise will provide a valuable contribution to the company."

Mr. Tang has this to say about his appointment, "I look forward to being part of the China Peregrine management team. We have a unique opportunity to grow rapidly across China through acquisition, and by providing much needed premium quality health-oriented products that our technology can produce."

China Peregrine owns 70% of an existing National Joint Venture with the Ministry of Agriculture of the People's Republic of China, one of the first ever approved in China. This joint venture provides for fresh dairy and beverage processing facilities to be operated in 16 major Chinese cities, giving the Chinese their first taste of Western-quality pasteurized milk. Currently, China Peregrine has dairy operations in Shanghai and Hangzhou, China.

Safe Harbor Statement under the Private Securities Litigation 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.