Fellow Shareholders:

As we end a volatile year in the markets, China Organic can claim several milestones over the past twelve months and expects impressive growth potential into 2009. Our successes in 2008 have positioned the Company well to expand and enhance our market influence within China and Asia, the two largest and fastest growing markets in the world.

Before I begin, I would like to address, briefly, the class action suit announced on December 12th, 2008. My previous comments and approach have not changed. The allegations of this suit are without merit and will be vigorously defended. This potential litigation shall not deter management from its goal of continuing to grow China Organic into a leading distributor of natural and organic foods as well as premium wines.

As I mentioned in my previous letter to our shareholders, both existing and potential:

China Organic continues to deliver outstanding shareholder value by executing our aggressive business plans to achieve consistent and exceptional growth in our revenues and earnings. The Company is rapidly moving from its agricultural roots to become a leading supplier and distributor of premium natural products to address the exceptional demand from the affluent and growing middle class in China and Asia.

Allow me to recap our milestones and achievements from 2008:

Our Ankang subsidiary posted an impressive increase in revenue in the third quarter 2008 compared to the first half of the year

Re-focused on core businesses-- premium foods and wine

Acquired Dalian Huiming, a major agricultural trading company

Established Asia Star Ice Wine Co joint venture

Acquired executive personnel including a new CEO and CFO

Added key administrative and sales personnel

Completed two out of three senior exchange listing requirements

Recently, the Company convened a meeting of senior executives from China Organic and all of its subsidiaries. While the purpose was to review progress to date, discussion also took place regarding ways to cooperate among divisions and laying the groundwork for growth in 2009 and beyond. The infrastructure necessary to develop a sales network is well underway with the addition of Dalian and Ankang as agricultural trading and distribution arms, respectively.

Our wine initiative through the joint venture Asia Star Ice Wine will commence production of premium and ice wine in 2009.