QUFU, CHINA--(Marketwire - 07/30/10) - Sunwin International Neutraceuticals, Inc. (OTC.BB:SUWN - News), today reported results for the full fiscal year of 2010 ended April 30, 2010.

Total revenue was $14.5 million, a decrease of 35% from the $22.2 million in the prior year. While sales decreased in both our Stevioside and Chinese and Veterinary Medicine segment, the weakness was far more pronounced in our veterinary medicine unit causing a year over year sales decline of 51% in that segment. Subsequent to the fiscal year end management elected to divest these operations to focus on its stevia operations and herb production for Chinese medicines.

In our Stevioside segment we made significant progress for the future and invested significant capital to prepare our company for the transition from purely a provider of bulk stevia to an all natural flavoring solutions provider to the food and beverage industry through our partnership with WILD Flavors, Inc. While overall sales in our Stevioside segment declined 26% from fiscal 2009 the decline was a result of a combination of several factors including our efforts to shift capacity toward higher grade production as we enter the U.S. food and beverage markets. From a production standpoint, our Qufu Shengren facility was idle for half of the year to complete the retooling process for the production of high grade stevia in order to be capable of addressing the needs of large multi-national consumer goods companies. Additionally, our 36,000 square foot stevioside production facility located in Qufu, China was closed in December 2009 due to a government policy which mandated the closure of factories not located in newly zoned areas of the city. From a sales standpoint, demand was particularly soft in both the Japanese and Korean markets which did not fully recover from the prior year's global economic downturn and as a result Chinese vendors who supplied cheaper and lower grade ingredients and stevioside extracts for export to Southeast Asia were much more competitive than in prior years. Most importantly, in March 2010 we received FDA affirmation regarding our Generally Recognized As Safe (GRAS) status that applies to five of our stevia extract products, including Rebaudioside A 98, Rebaudioside A 95, Rebaudioside A 80, Rebaudioside A 60, and Stevioside 90 Stevia Extracts which places our company at the forefront of the all natural low calorie sweetener industry with more grades of stevia available for use in the United States than any other stevia producer in the world. We believe the efforts made in our Stevioside segment in fiscal 2010 will lead to sustainable sales growth in the coming years as we have the capability to produce many grades of stevia to address customer needs.

In fiscal 2010, total operating expenses were $7.5 million compared to $4.5 million in fiscal 2009. The $3 million increase in operating expenses was primarily as a result of a $1.5 million increase in research and development for new products and manufacturing processes and an additional $800,000 associated with the disposal of its Qufu manufacturing facility. We reported a net loss of $4.9 million or ($0.03) per share in fiscal 2010, compared to net income of $500,000 or $0.00 per share in fiscal 2009. The decline in net income is primarily the result of increased operating expenses associated with research and facility improvement coupled with a difficult market in Southeast Asia.

At April 30, 2010, cash was $12.7 million with working capital of $18.8 million compared to April 30, 2009 where cash was $10.5 million with working capital of 19.9 million.

Commenting on the results for fiscal 2010, Dongdong Lin, CEO of Sunwin International, stated, "Our results for fiscal 2010 reflect the difficult sales environment in Southeast Asia for our products coupled with our significant investment in the future as we transition into vast new markets in partnership with WILD Flavors. Our GRAS affirmations along with the tooling of our facility gives us 500 tons metric tons of capacity and the ability to provide a wider array of stevia grades than any of our competitors. We are more excited than ever about our long term prospects for sustainable growth with our capability to provide stevia based flavoring solutions in our partnership with WILD Flavors as well as a wide variety of grades of bulk stevia for worldwide markets."

About Sunwin International Neutraceuticals, Inc.

Sunwin International Neutraceuticals, Inc. is a vertically integrated leader in the area of all natural, zero calorie stevia sweeteners in addition to the production and sale of essential traditional Chinese medicines, prepared from 100 percent natural herbal ingredients. As an industry leader in agricultural processing, Sunwin has built an integrated global firm with the sourcing and production capabilities to meet the needs of consumers throughout the world. For more info about Sunwin, please visit their web site at www.sunwininternational.com.

 Safe Harbor Statement

Sunwin International Neutraceuticals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding revenues, net income and earnings.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2010.

CONTACT:
Company:
Jeff Reynolds
972-377-2339
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Investors:
Lillian Wong
U.S. Representative
954-363-7333
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