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TSX Venture: ABC

TORONTO, Aug. 22 /CNW/ - Asia Bio-Chem Group Corp. (TSXV: ABC) ("Asia Bio-Chem" or the "Company") today announced its interim financial statements for the period ending June 30, 2008. In addition, the Company has announced that it has entered into a Letter of Intent to purchase a partially completed 600,000 tonne corn processing plant in Heilongjiang Province, China.

Interim Financial Results

Highlights

  -  Both revenues and gross profit improved during the first half of
     fiscal 2008 compared to the corresponding period in 2007.
  -  During the first half of 2008, the Company achieved $6.1 million in
     net income and $8.9 million in comprehensive income despite higher
     costs associated with the expiry of the Company's tax holiday and
     additional costs associated with becoming a public company.
  -  With the successful completion of a $30 million private placement,
     the Company had $42.7 million in cash as at June 30, 2008 and no
     bank debt. With this strong balance sheet, the Company is well
     positioned to execute on its growth strategy.

Asia Bio-Chem, today reported second quarter sales of $21.4 million and net income of $2.9 million. The Company was not required to report comparable numbers for the second quarter of 2007 however comparatives for the first six months of 2007 have been provided.

Higher volumes and improvements in product pricing contributed to an increase in sales revenue during the six month period ending June 30, 2008 to $41.3 million compared with the corresponding period of 2007. Despite 10.8% higher corn costs during the first half of the year, the company achieved a 4.4% increase in gross profit to $9.9 million over the corresponding period in 2007.

Higher general and administrative costs associated with the Company's preparation to become a public company contributed to a decline in income from operations for the first half of fiscal 2008 to $7.7 million from $8.4 million reported as a private company during the first half of fiscal 2007.

"Despite challenging market conditions experienced during the past six months, we continue to maintain our customer base and position our company for growth" stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem. Mr.