China Premium Food Corp. to Bolster Controlling Position At Its Hangzhou Meilijian Joint Venture; Will Report Its Financial Statements On an Equity Basis.Business Editors NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--March 31, 2000 China Premium Food Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CHPF CHPF Carolina Horse Park Foundation ), formerly known as China Peregrine Food Corp. announced that in line with recent, previously-reported changes in its business model, the Company has proposed the restructuring of voting power at Hangzhou Meilijian, that will enhance China Premium's control over the activities of its Chinese joint venture subsidiary. China Premium anticipates that this modification will occur in connection with a capital contribution that would increase the percentage of registered capital in the joint venture attributed to the Company. Hangzhou Meilijian produces and distributes dairy and juice products in the Hangzhou Metropolitan area of China, which is located about 180 miles southwest of Shanghai. Until this modification is effected, China Premium will report its financial statements on an equity basis rather than using the consolidation method previously adopted. Accordingly, the Company will restate its year-end financials, as well as those of its subsidiaries, and will present its reports for the year ending Dec. 31, 1999, on an equity basis. China Premium has filed an extension with the SEC for release of its Form 10K, in order for its auditors, BDO Seidman BDO Seidman, LLP is the United States arm of BDO International, one of the largest accounting firms outside of the Big Four. History BDO Seidman, LLP was founded as Seidman and Seidman in New York City in 1910 by Maximillian L. Seidman. , to accommodate these changes in the Company's audited financial statements. Other important recent developments in China Premium's business model include: an agreement in principle to acquire Mandarin Fine Foods Company of Beijing and Shanghai, the dominant distributor of premium food products to four- and five-star hotels throughout China; the formation of Bravo! Foods, Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , which will be utilized to advance the Company's business strategy of promoting and distributing branded products in the United States through strategic arrangements with local producers and manufacturers; and Chinese government approval for the registration of a new wholly-owned subsidiary in the Wai Gao Qiao "Free Trade zone" in Shanghai, for the development of an import/export and distribution business throughout China. China Premium has been reorienting its business to accommodate the tremendous demand and opportunity for the distribution of quality comestibles comestibles Noun, pl food [Latin comedere to eat up] throughout China. Accordingly, the Company has set out to leverage its resources into the development of new products, and the building of distribution channels, rather than being absorbed by capital-intensive production processes. With Chinese consumers currently spending over 40% of their growing incomes on food, China Premium expects to capitalize on the sea change in eating habits created by the improving quality of Chinese life. China Premium has a 52% interest in Hangzhou Meilijian Dairy, the largest and dominant dairy in Hangzhou, China, a city of 6 million people. China Premium has an exclusive supply contract with U.S. based Lance, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :LNCE LNCE Linear Near Certainty Error ) for the export of crackers and snack foods to China. The Company plans to leverage this opportunity through its wholly owned food distribution subsidiary in Shanghai, located in the Wai Gao Qiao Free Trade Zone. In addition, China Premium is pursuing other production and distribution agreements in China for its Wai Gao Qiao company, as well as for its Looney Tunes(TM) dairy beverages. For more information visit our website: www.chinapremiumfood.com Looney Tunes(TM) , characters, names and all related indicia Signs; indications. Circumstances that point to the existence of a given fact as probable, but not certain. For example, indicia of partnership are any circumstances which would induce the belief that a given person was in reality, though not technically, a member of a given are trademarks of Warner Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) .(c) 1999,2000 Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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. |
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