Statement by ChemNutra on DoJ Indictment

LAS VEGAS--(Business Wire)--
ChemNutra and Steve and Sally Miller deny in the strongest of
terms the allegations by the Department of Justice and look forward to
the opportunity to prove their innocence at trial. Neither Mr. nor
Mrs. Miller had any intent to defraud or any knowledge of wrongdoing.

Importantly, the Department of Justice, although not stated in its
news release, made no allegation that either Mr. or Mrs. Miller had
any knowledge of the presence of melamine or any other erroneous
substance in the products ChemNutra imported that would cause injury
or death to animals.

The misdemeanor charges contained in the indictment are strict
liability offenses, meaning that they attach by virtue of importing a
product that is contaminated, regardless of whether one knows of the
contamination.

The one felony count alleges Mr. and Mrs. Miller sought to defraud
their customers by intentionally failing to disclose to their
customers that some of the wheat gluten being exported from China was
labeled by the Chinese manufacturer with a different tariff code than
the one required for U.S. entry and otherwise applicable to wheat
gluten.

That alleged incorrect code, the government alleges, allowed the
product to circumvent quality testing by Chinese authorities. Although
Mr. and Mrs. Miller strongly deny any intent to defraud or knowledge
of wrongdoing, the government does not allege that Mr. and Mrs. Miller
knew of the presence of melamine or any other substance that would
cause death or injury to animals.

The Millers unequivocally support the government pursuing those
with knowledge of the dangerous contaminants; however, they are deeply
bothered by the government's failure to make these important
distinctions in its press release related to their indictment.

Stern and Company
Steve Stern, 702-240-9533

Copyright Business Wire 2008