March 14, 2007 - Eu Yan Sang International Ltd ("Eu Yan Sang" or the "Group"), a household name for traditional Chinese medicine (TCM), today held a ceremony for the launch of its new quality assurance (QA) and processing facilities for Wisconsin American Ginseng in Hong Kong. The new facilities were established following the Group's announcement in December 2006 of the award of an exclusive worldwide distributorship to Eu Yan Sang by the Wisconsin Ginseng & Herb Coop ("GHC") and the granting of the sole right to use the Wisconsin Ginseng Seal® by Ginseng Board of Wisconsin ("GBW").
The ceremony was officiated today by Mr Richard Eu, Group CEO of Eu Yan Sang, Mr Joe Heil, President of GBW, Mr John Rutherford, Acting Director-General of Investment Promotion at Invest Hong Kong, and Mr Philip A. Shull, Director, US Agricultural Trade Office Hong Kong.
This agreement signifies a major collaboration between Asia's TCM sector and the Wisconsin American Ginseng industry, bringing together the best of East and West. The ginseng growers registered with GHC, the official body that awards the Wisconsin Ginseng SealR, have an aggregate output representing about 80% of the Wisconsin State's total ginseng output. Eu Yan Sang now holds the sole right to use the Wisconsin Ginseng SealR worldwide.
Pursuant to the arrangement, Wisconsin American Ginseng contracted under the auspices of GHC will be shipped to Eu Yan Sang's GMP plant in Yuen Long Industrial Park in Hong Kong, where fingerprinting and processing are undertaken. The certified and processed Wisconsin American Ginseng will then be exported from the Hong Kong GMP centre to markets worldwide, furthering Hong Kong's lead as the world's QA pioneer and centre for TCM.
Mr Richard Eu said: "We are very excited about the collaboration with GHC and GBW for the worldwide exclusive distribution of Wisconsin American Ginseng and the granting of sole right to use the Wisconsin Ginseng SealR. As a result of this collaboration, the quality and scientific validation of the purest and finest quality ginseng in the world are further enhanced for the benefit of consumers worldwide. This is part of our ongoing effort to harness nature and science to ensure greater credibility and acceptance of TCM, with the aim of promoting the use of TCM as part of mainstream healthcare and a modern lifestyle that calls for lifelong wellness. This exclusive distributorship also reaffirms our position as a leading global healthcare group with a TCM focus."
Eu Yan Sang (Hong Kong) Limited ("Eu Yan Sang Hong Kong"), a wholly-owned subsidiary of Eu Yan Sang, has committed an investment of HK$5 million for the establishment of new processing facilities and the construction of a new chill room at its newly commissioned Eu Yan Sang Centre in Hong Kong. Part of Eu Yan Sang Hong Kong's fingerprinting and other testing facilities will also be designated for the validation of Wisconsin American Ginseng.
Mr Joe Heil said: "This collaboration will benefit from the superior farming techniques and product quality of Wisconsin growers on one hand, the brand recognition and distribution networks of Eu Yan Sang on the other. Our combined commitment to leverage our respective strengths will create synergies that would result in better market reach and stronger sales performance."
Mr John Rutherford said, "InvestHK is proud to be the catalyst that brought together Eu Yan Sang and the Ginseng Board of Wisconsin. This innovative project will surely strengthen Hong Kong's position as a leading centre for the development and quality assurance of TCM products. Our city has an established track record of integrating Eastern and Western medical and health treatments, and our business-friendly environment, world-leading logistics network and stringent intellectual protection legislation makes Hong Kong the natural place to develop this collaboration. We look forward to tracking this exciting project which brings new ideas, technology and jobs to Hong Kong."
"We are also delighted to be able to celebrate this expansion of Eu Yan Sang's presence in Hong Kong, only four months after the establishment of the company's new manufacturing facilities in Yuen Long," Mr Rutherford said.
Mr Richard Eu added: "To achieve maximum efficacy and the expected therapeutic effects of natural herbs, careful attention is always paid to their origin, when they are harvested and how they are processed. In the next step, we will apply the verification test results and work further with GHC and GBW to extend the quality consistency process to the agricultural end."
Eu Yan Sang expects revenue in the first year arising from the distributorship to be in excess of HK$50 million, with the potential to grow to more than HK$200 million within the next 3 to 5 years. In the current financial year ending 30 June 2007, the Group will re-invest the earnings from this distributorship into the marketing and promotion of Wisconsin American Ginseng.
At the launch ceremony, Professor Li Min, Associate Professor, HKBU's School of Chinese Medicine discussed the clinical aspects with regard to the efficacy of Wisconsin American Ginseng. G
rown only in clean, mineral-rich soil in Wisconsin, USA - and in compliance with strict standards set by GBW - Wisconsin American Ginseng (Panax quinquefolium L.) is best known for the nourishment of "yin" essence and helps clear excess heat from the body. It is found to have positive influences on the heart, lungs and kidney channels.
Wisconsin American Ginseng also has a comparatively higher concentration of active ingredients known as triterpene saponium (eg ginsenoside), which have remarkable health benefits. By maintaining body fluids and promoting vital energy, it is invigorating and recuperative, making it an ideal tonic for modern city life, particularly for those who smoke and lack sufficient sleep.
About Eu Yan Sang Group
Listed on the Singapore Exchange, Eu Yan Sang International Limited (Eu Yan Sang) is a progressive, global healthcare company with a core focus on Traditional Chinese Medicine (TCM).
The Group has come a long way from its humble beginnings offering TCM remedies to tin mine coolies in Gopeng, Perak, Malaysia 127 years ago. Today Eu Yan Sang is a household name in Asia with an unrivalled reputation as the leader in the TCM industry.
The Group markets fine quality Chinese herbs, Chinese Proprietary Medicines as well as health foods and supplements. It currently offers more than 280 products under the Eu Yan Sang brand name and over 1,000 different types of Chinese herbs and other medicinal products. In December 2006, the company signed an exclusive worldwide distributorship agreement with the Wisconsin Ginseng & Herb Coop.
Manufacturing activities are carried out in two of its GMP (Good Manufacturing Practice)-certified factories located in Hong Kong and Malaysia. The Hong Kong facility in Yuen Long is also TGA (Therapeutic Goods Administration)-certified.
Eu Yan Sang has an extensive distribution network comprising 120 Eu Yan Sang branded retail outlets in Hong Kong, Malaysia and Singapore. The Group also operates a chain of 20 TCM clinics in Singapore, Malaysia and Australia; 13 TCM clinics in Singapore and Malaysia; three specialist TCM clinics in Singapore; and four "YourHealth" integrative medicine centres (IMCs) in Australia. For more information about the Eu Yan Sang Group, please visit www.euyansang.com.
About the Ginseng Board of Wisconsin
The Ginseng Board of Wisconsin (GBW) was established in 1986 as a non-profit making organization representing registered Wisconsin Ginseng growers. The mission of the GBW is to represent Wisconsin Ginseng producers as the worldwide leader of the American Ginseng industry, committed to the advertising, promotion and sale of Wisconsin Ginseng, the purest ginseng in the world.
The GBW is managed by an elected board of seven Ginseng growers, which functions under a marketing order managed by the Wisconsin Department of Agriculture Trade & Consumer Protection.
The GBW is the administrator of the Wisconsin Ginseng Seal® Program, which was developed in 1991 to protect the integrity of Wisconsin Ginseng products. Packaged products bearing the official Wisconsin Seal must contain 100 percent pure Wisconsin Ginseng, grown and harvested in Wisconsin to the exacting standards established by the US Food and Drug Administration.
For more information, please visit www.ginsengboard.com.