Dutton Associates Announces Investment Opinion: Sunwin International Neutraceuticals Strong Speculative Buy In Update Coverage By Dutton Associates.

EL DORADO HILLS, Calif. -- Dutton Associates continues its coverage of Sunwin International Pharmaceuticals (OTCBB:SUWN) reiterating a Strong Speculative Buy rating and a price target of $1.85. The 11-page report by Dutton senior analyst Stanley Ng is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

Sunwin's recently announced record high revenue and net income for FY2006, amid a weaker-than-expected fourth quarter earnings. Higher expenses related to the promotion of new TCM and veterinary products, stock-based compensation for hiring professional services to market and distribute natural sweetener products in the United States, and traveling expenses for the road show in the United States to promote business were the culprits on dragging down earnings in the fourth quarter. Given that these expenses are either non-recurrent or positive for driving future sales, our positive view on Sunwin's earnings outlook remains intact. For prudence, we have slightly adjusted downward our revenue projections for Chinese medicines and animal medicines but maintain our revenue projections for natural sweetener for the coming two years. Meanwhile, we have reduced our assumptions for certain expenses, such as repairs and maintenance due to more efficient productions from the newly built/upgraded facilities and lower advertising expenses for veterinary medicines due to reduced market competition as competitors that did not conform to the good manufacturing process (GMP) requirement gradually leave the market. Introduction of new TCM and veterinary medicine and higher percentage of self-manufactured natural sweetener sales should help lift margins. We are modestly adjusting our price/earnings multiple that we are applying to Sunwin from 25 to 23. Based on the revised EPS forecast of $0.081, our 12-month target price of $1.85 per share remains unchanged.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. The Firm does not accept any equity compensation. We received $35,000 from the Company for 4 quarterly Research Reports with coverage commencing on 05/08/2006. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.