China Kangtai Cactus Co-Develops New Cigarette For Russian Market

China Kangtai Cactus Biotech Inc. (OTCBB: CKGT) (the “Company”), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that preliminary samples of its new “Tai Shan Sheng Chao” cigarette have been co-developed by China Tobacco Shandong and China Kangtai Cactus. The new cigarette products primarily target the Russian market.

The new cigarette is produced by Shandong Jinan Tobacco Company, a subsidiary of China Tobacco Shandong. China Kangtai has modified the ingredients of its original cigarette to develop a new cigarette that accommodates the unique tastes and fragrance preference of Russian cigarette smokers. The new cigarette is blended to taste similar to State Express 555 and Marlboro cigarettes.

China Kangtai Cactus CEO Mr. Jinjiang Wang said, “The development of this new cigarette is a significant milestone achievement for our company. We are confident that this new cigarette will greatly increase our future sales and profit margin for our shareholders.”

The company said it is currently engaging negotiation talks with potential distributors regarding the distribution rights in Russia.

About “Tai Shan Sheng Chao” Cigarette

The “Tai Shan” cigarette, which is produced by China Tobacco Shandong, is a registered brand in China. “Sheng Chao,” which was developed by China Kangtai Cactus, is a cactus-based cigarette with additional herbs and some tobacco that targets consumers who prefer low-nicotine cigarettes. The company signed a cooperation agreement with China Tobacco Shandong at the end of 2010 to launch the “Tai Shan Sheng Chao” cigarette and began full production of the “Tai Shan Sheng Chao” cigarette in February 2011. The company currently has trial sales in Shandong province. China Kangtai Cactus is the first publicly held company to sign a joint manufacturing agreement with a government-owned cigarette manufacturer. Shandong Jinan Tobacco Company is one of the primary tobacco manufacturers in China with revenue of RMB 5 billion (approximately $770 million) in 2010.