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CCI Reports on Positive Progress at Dong Wu Farm.

Receives $5.8 Million Contract for Animal Feed;

Initiates Initial 2,000 Boar Goats Embryo Transfer

HONG KONG, Sept. 19 /PRNewswire/ --

China Continental, Inc. (OTC Bulletin Board: CHCL) announced today the signing of a $5.8 million contract for animal feed and the initiation of embryo transfer activities at the Company's Dong Wu farm.

Shang Jai Ji, Chairman of CCI, commented, "as stated in a recent press release, the new management team determined that the Company should refocus its energies on agricultural genetics that it believes is in the best interest of the Company and its shareholders. As previously stated, we are pleased to report that the Company will generate revenue from the Dong Wu Bio Tech Farm in both the third and fourth quarter of this year from the harvesting of animal feed. Based on our preliminary analysis, revenue for the third and fourth quarters will be approximately US$2 million and US$4 million respectively."

Animal Feed

The Company has initiated harvesting of high quality forage grass for animal feed. As of August 28, 2000, 15,000 tons of feed had been produced. The Company expects at least another 50,000 tons will be harvested to fulfill a contract with Beijing Fengrun Fine-Breed Husbandry to supply forage grass. The total contract is for 65,000 tons, or approximately $5.8 million, all of which is to be delivered before November 2000. The Company has received Rmb. 4 million, or approximately US$482,000, as a deposit.

The Company plans to utilize American quality forage grass, which is superior to the Chinese variation, adopt advanced cultivating and harvesting techniques, and use high-tech equipment. Exports are planned to Japan, South Korea, Taiwan and Southeast Asia in the fourth quarter of 2001.

The Company currently has 406 square kilometers of land, 50% of which will be used to produce pollution-free grassland. Two hundred seasonal workers are being employed for harvesting the grass.

Animal Husbandry

CCI is using Australian technology from Castella Research Pty Ltd. Two thousand embryos are expected to be delivered to the farm in late October. Castella will be providing several scientists together with Malcolm Roy Brandon, the Company's Technical Director.

The Company's goals are to establish in China the most superior goat breed in the world, Boer goats. Boer goat embryo production is currently based in Australia. The group's intention is to establish embryo transfer technology, services and sales for dairy cow embryos in addition to purebred goats in Southeast Asia. The project will be initiated during the 2nd quarter of 2001. The transfer center will be in Inner Mongolia.

CCI's new management team has had eight years of prior experience in the Chinese agriculture and animal raising markets. With this successful experience, and leveraging America's advanced agriculture and animal raising technology and techniques, the Company plans to aid the technical development of the Chinese market. The focus will initially be on embryo bioscience study and application, agriculture and animal raising science as the Company's developing direction. The following provides backgrounds on the scientific strengths of the Company.

Dr. Brandon is the Technical Director of the Company. He is also the Managing Director of Castella Research Pty Ltd., an Honorary Professor of the University of Inner Mongolia, Principal Fellow of Centre for Animal Biotechnology, School of Veterinary Science at The University of Melbourne and a Research Associate of the Austin Research Institute, Austin & Repatriation Hospital. Dr. Brandon received his Bachelor of Agricultural Science and PhD degrees at the University of Sydney. He has over 26 years experience in basic research, development and production of biological products. He has been a visiting professor of Oxford University and Michigan State University.

Zhong Cheng Zhang is a leader in animal biology and has contributed greatly in maintaining the Peoples' Republic of China's highly competitive research field. He has established eight research projects with the Government and has over 30 years experience in biotechnology.

Shujing Li is primarily responsible for developing, researching and supplying technologies in agricultural genetics. He established a state owned project employing agricultural genetics to improve the equality of existing foodstuff. He received his Doctorate degree in Agriculture Science from China Agricultural University. He holds positions in the Chinese Youth Association of Science and Technology, the Asian Society of Animal Biotechnology, the Chinese Society of Animal Reproduction and the College of Animal Science and Technology.

Water Resources

In addition to agriculture and animal raising science, the Company has access to pollution-free quality mineral water resources in mainland China. Its strategy is to purchase additional water resources in the same region of the country as the present farm. In the future, the Company intends to set up a joint venture with an international bottling company and utilize its sales network to develop and produce high quality drinking mineral water. The Company is at a very preliminary stage in this process.

About China Continental, Inc.

China Continental, Inc., traded on the OTC Bulletin Board market since 1995. The Company's agricultural genetics and farming activities are centralized in the Inner Mongolia Province of China at its farm, Dong Wu, covering an area of 406 square kilometers to commercialize its genetically improved products.

Safe Harbor Statement

Except for the historical statements made herein, the statements made in this release are forward-looking statements, including "Based on our preliminary analysis, revenue for the third and fourth quarters will be approximately US$2 million and US$4 million respectively." and "As of August 28, 15,000 tons had been produced. The Company expects another 45,000 tons will be harvested." Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, general business conditions, managing growth, and political and other business risks. Although the Company believes that the forward- looking statements contained herein are reasonable, it can give no assurance that the Company's expectations are correct. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission.
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