Emerald Dairy Reports Net Income Rose for 3rd Quarter 2009; Nine-month Income Reached $3.7 Million, Up From $1.5 Million for Same Period in 2008

Emerald Dairy Reports Net Income Rose for 3rd Quarter 2009; Nine-month Income
Reached $3.7 Million, Up From $1.5 Million for Same Period in 2008

RESTON, Va., Nov. 16 /PRNewswire-Asia-FirstCall/ -- Emerald Dairy, Inc.
("Emerald Dairy" or the "Company") (OTC Bulletin Board: EMDY), a leading
producer and distributor of infant and children's formula, milk powder and
soybean products in China, today announced net income rose for the third
fiscal quarter and first nine months ended September 30, 2009.
Net income for the three-month period ended September 30, 3009 rose to
$884,625, up from $808,067 for the same period in 2008. For the nine-month
period ended September 30, 2009, net income rose to $3,700,467 from $1,509,235
for the same period in 2008.
Sales revenues decreased from $11,221,019 in the third quarter of 2008 to
$10,158,004 for the 2009 third quarter. Sales for the nine months totaled
$31,261,491, compared to $32,560,256 for the same period in 2008. The
decrease was primarily attributable to the decrease in the Company's
subcontracting activities as it continued to adjust its sales mix to focus on
production of higher margin products. These products take longer to package
resulting in a slight reduction in the Company's output. Net income was not
impacted as the Company continued to adjust its product mix to focus on higher
margin products in fiscal 2009.
Cost of goods sold for the quarter decreased to $5,569,598 from $6,552,835
for the same period in 2008. For the nine-month period, cost of goods sold
decreased to $17,057,583 in 2009 from $19,845,232 in 2008. This decrease was
directly related to the Company's reduction in subcontracting work during the
three months ended September 30, 2009.
Gross Profit was $4,588,406, or 45.2% of sales, for the three months ended
September 30, 2009, as compared to gross profit of $4,668,184, or 41.6% of
sales, for the same period in 2008. For the nine-month period in 2009, gross
profit rose to $14,203,908, up from $12,715,024 for the same period in 2008.
Cash and cash equivalents at September 30, 2009, increased by 31.8% to
$9,681,007, from $7,343,588 at December 31, 2008. Working capital increased
from approximately $3.5 million in 2005 to approximately $22.0 million in
2009,
including cash generated from operations, as well as funds raised from private
offerings of promissory notes and warrants consummated in fiscal 2008.
Shu Kaneko, Chief Financial Officer of Emerald Dairy, said: "We were
pleased with the results we achieved in the third quarter of 2009. Our
reputation for high quality continues to drive product demand even in the face
of slower economic growth, and our careful management of resources has
supported our healthy bottom line."
Mr. Kaneko continued, "We expect to complete our new production facility
in the near future, which will double our production capacity and increase our
revenues. This expanded capacity will help us keep up with the demand for our
products, which drove our net income upward by 220% in the past three years.
Our growth strategy going forward will be primarily focused on expanding
production capacity and strengthening sales and advertising efforts."
China's Rapidly Growing Dairy Industry
The dairy market today in China is over $13 billion and is expected to
grow at a rate of 15% per year for the foreseeable future. The Chinese
government has recognized that the dairy industry is not only crucial to
reforming the structure of agriculture in the country and increasing the
income of farmers, it is also essential to improve the diet, health, and
overall welfare of the Chinese people. In recent years, milk and dairy
products have gradually become an accepted daily necessity in the life of
Chinese people. As a result, the dairy market is one of the fasted growing
markets in China.
About Emerald Dairy Inc.:
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 high-end
customers, and "Yi Bai," designed for middle and low-end customers. They are
distributed throughout 20 provinces in mainland China and sold in over 5,800
retail outlets.
Certain statements in this release and other written or oral statements
made by or on behalf of the Company are "forward looking statements" within
the meaning of the federal securities laws. Statements regarding future
events and developments and our future performance, as well as management's
expectations, beliefs, plans, estimates or projections relating to the future
are forward-looking statements within the meaning of these laws. The forward
looking statements are subject to a number of risks and uncertainties
including market acceptance of the Company's services and projects and the
Company's continued access to capital and other risks and uncertainties. The
actual results the Company achieves may differ materially from any
forward-looking statements due to such risks and uncertainties. These
statements are based on our current expectations and speak only as of the date
of such statements.
For more information, please contact:

Stanley Wunderlich
Consulting for Strategic Growth 1
Tel: +1-800-625-2236
Fax: +1-646-205-7771
Email: swunderlich@cfsg1.com

SOURCE Emerald Dairy Inc.

Stanley Wunderlich of Consulting for Strategic Growth 1, +1- 800-625-2236, or
fax, +1-646-205-7771, or swunderlich@cfsg1.com