Kiwa Bio-Tech Products Group Corporation announced on December 22, 2009, Tianjin Kiwa Feed Co, Ltd (Kiwa Tianjin), 80 per cent owned subsidiary of Kiwa Bio-Tech Products Group Corporation, filed a lawsuit against Tianjin Challenge Feed Co, Ltd (Challenge Feed), Kiwa's 20 per cent joint venture partner in Kiwa Tianjin, in the local court of Wuqing District, Tianjin, where Kiwa Tianjin is domiciled.

In the lawsuit, Kiwa Tianjin asserted that Challenge Feed unlawfully disposed of assets held by Kiwa Tianjin. Such assets include machinery and equipment and inventories. Kiwa Tianjin is seeking damages against Challenge Feed in the amount of approximately RMB 2.2 million in total. The local court is currently reviewing the complaint and related documents filed with it.

Taking into consideration of the fact that Kiwa Tianjin will not be able to operate normally with its own machinery and equipment in the factory leased from Challenge Feed, Kiwa Tianjin has chosen another factory to continue its operations. Kiwa Tianjin is in the process of negotiation of a long-term cooperation agreement with the owner of the new factory.

The company develops, manufactures, distributes and markets innovative, cost-effective, and environmentally safe bio-technological products for agricultural and natural resources and environmental conservation.