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YaSheng Group Announces Expansion of Three Products for China's "Grain for Green Project"

YaSheng Group Announces Expansion of Three Products for China's "Grain for Green Project"

REDWOOD CITY, CA -- (MARKET WIRE) -- 04/24/06 -- The YaSheng Group (OTC: YHGG) announced today expansion of three products for China's "Grain for Green Project." Gansu Province, which is located in western China, is a main source of sandstorms in the country. The percentage of forest coverage is only 9.04%. Ecological problems arise as wind erosion, desertification, water and soil erosion, are very serious. In order to restore and improve the environment of the province, YaSheng Group, in coordination with the government, is taking advantage of the "develop-the-west" strategy. This national strategy is to plant forests and grass of 13 million acres from 2000 to 2010. By integrating the "Grain for Green Project" and accelerating the expansion of vegetation, this will create a sustainable environment and modernize the structure of agriculture as well as improve the economy for the rural areas.

The company will expand production to raise seedlings for apricots and pears in a high tech agriculture zone on 1,300 acres of land and to plant 16,466 acres of economic forests that will grow fast, high-yield products and shelter the sand blown by wind. There will be 8,233 acres planted with Tiaoshan apricots and 8,233 acres with pears. Apricots and pears are perfect for this area because of the environmental advantages, like long days, with sunshine and good soil. The fruits produced here are of top grade in appearance and quality for a targeted high-end market.

The company will also build a high tech zone to raise seedlings for the poplars on 200 acres. Also YaSheng will plant an agro base of 16,466 acres for the production of fast-growing poplars for timber and alfalfa for feed stuff. Poplars will be used also to produce a high-grade raw material for board. China is the largest timber importing country in the world. The price for the imported timber has risen from $50/m3 in 1990s to $125 /m3 at present.

The alfalfa hay meal produced in the feedstuff industry was sold at an average of about 125 dollars/ton in the international market in 2000, and the price increased to about 160 dollars/ton in 2003. It is projected that in the next ten years, stockbreeding in China will develop rapidly, seeing large increase in demand for feedstuff.

YaSheng will utilizes Yamit water-saving drip irrigation systems in developing the above projects as well as 3,293 acres of shelter shrubberies as the auxiliary project on the edge of the desert. These techniques are consistent with the overall concept of establishing a sustainable long-term revenue resource that benefits the environment and the company.

There will be 6 of YaSheng's Agricultural Entities involved with the expansion of these products stretching from the East to the West of the Hexi Corridor. There will be 3 stages of development running over 5 years that will set the foundation for the raising of seedlings into mature yielding agro products for long term development.

About YaSheng Group:

The YaSheng Group (OTC: YHGG) is a diversified industrial conglomerate incorporated in Redwood City, California, operates in hi-tech agriculture, salt chemistry and biological technology as its core Business with advantages in rich land, mineral resources, capital and technology reserves.

Through three major industries, Agriculture, Chemical, and Biotechnology, the company's operating categories include: chemical engineering, agricultural production, biotech, pharmaceuticals, textile products, printing and dyeing, commercial trading, beverages and inorganic salt manufacturing. With total assets of approximately $1.5 billion USD and over 15,000 employees, YaSheng Group has 155,097,355 shares issued and outstanding as of December 1, 2004.

Further information concerning YaSheng Group can be found on the corporate website: http://www.yashenggroup.com/

Forward-Looking Statements:

Certain statements contained in this press release are forward-looking statements that involve risks and uncertainties. The statements contained herein that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended.

CONTACT:
YaSheng Group
Investor Relations:
Tel: 650-363-8345
E-Mail: Email Contact

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