Emerald Dairy Begins Production in New Facility

HARBIN, China, Sept. 14– Emerald Dairy, Inc. (OTC BB: EMDY) (“Emerald Dairy” or “the Company”) a leading producer and distributor of infant and children’s formula products, today announced it has begun test production on its new infant formula production line (“Line B”) at its recently constructed facility in Hailun, China.

Emerald Dairy has been in active construction on its Hailun facility during this year and recently completed the installation of its second line (“Line B”) which will increase annual production capacity of its infant formula from 9,000 tons to 19,000 tons annually. Testing of the line will run through September 2010, with commercialization commencing in October. Based on a current backlog of orders, the Company estimates that “Line B” will start to operate at 40% capacity and gradually increase to 100% over a 9 to 12 month time period. Company estimates on capacity are based on customer demand across its 130 distributors in China.

During the installation process, Emerald Dairy was pleased to receive an analyst from Geo Investing who filmed a video of the Hailun facility and final stages of the installation of “Line B”. A link to the video is posted below: http://geoinvesting.com/companies/emdy_emerald_dairy_inc/profile/facility_tour.

The Company also posted pictures of its new production line and Hailun facility on its Website, http://www.emerlddairy.com . The link to the pictures on the site is posted below: http://emeralddairy.com/newFacility.htm .

“We are pleased to reach this final stage of the completion of our new production facility, which is a significant milestone for our Company,” began Yang Yong Shang, Chairman and CEO of Emerald Dairy. “As the infant formula market in China continues its growth, we believe the completion of our second production “Line B” will enable our sales teams and distributors to increase market share of our Xinganling(R)-branded products as we continue our rapid growth in China’s “3” and ‘4″ tier cities,” concluded Chairman Yang.

Emerald Dairy has provided guidance of $60-$65 million in revenues and $8.0 – $9.0 million in net income for the 2010 year based on the planned completion of the new facility in the third quarter of 2010. As reported in the first six months of 2010, Emerald has recorded $27.2 in revenues and $5.2 million in adjusted net income excluding non-cash charges. The Company is confirming its previous guidance and expects growth to accelerate during 2011 as management is able to increase capacity utilization and enjoy the benefit of an entire year of contribution from “Line B”.

About Emerald Dairy
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a producer and distributor of infant and children’s formula, milk powder and soybean products in the People’s Republic of China. The Company’s products are sold under two brand names — “Xing An Ling,” designed for middle and high-end customers, and “Yi Bai,” designed for low-end customers. Emerald Dairy’s products are distributed throughout 20 provinces in mainland China and sold in over 6,000 retail points. For further information about Emerald Dairy Inc., please visit the Company’s website at http://www.emeralddairy.com/

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