American Dairy Announces 3Q05 Financial Guidance

BEIJING--(BUSINESS WIRE)--Sept. 20, 2005--American Dairy, Inc. (PCX:ADY - News), one of the leading producers and distributors of milk powder and soybean products in China, today announced financial guidance for the third quarter of 2005.
The Company expects revenue in the third quarter of 2005 to be $14.0 - $15.0 million, up at least 55% from $9.0 million in the third quarter of 2004. The Company expects net income to be $2.8 - $3.0 million, up at least 133% from $1.2 million in the comparable period of 2004, and net income per diluted share of $0.18 - $0.19, based on 15.4 million diluted shares outstanding.



About American Dairy

American Dairy, Inc. conducts operations in the People's Republic of China ("China") through its wholly owned subsidiary Feihe Dairy. Founded in 1962, Feihe Dairy is one of the leading producers and distributors of milk powder and soybean products in China. Feihe Dairy is located in Kedong County, China and has been in operation since 2001. American Dairy also has a milk powder processing plant, Sanhao Dairy, in Kedong County, China.

Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners, and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws and defects in products and services and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time

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©2003 American Dairy, Inc.

Business Wire -



May 04, 2005 01:09 PM US Eastern Timezone

American Dairy To Be Featured in ArcaEx Ad Campaign

BEIJING--(BUSINESS WIRE)--May 4, 2005--American Dairy, Inc. (PCX:ADIY), one of the leading producers and distributors of milk powder and soybean products in China, is pleased to announce that they were chosen by ArcaEx to kick off a new advertising campaign. This new campaign features ArcaEx's exclusive and dually listed companies, announcing that these companies are listed on ArcaEx, a facility of the Pacific Exchange.


American Dairy is the first company to list exclusively on ArcaEx since Archipelago Holdings' initial public offering on August 12, 2004. "We are proud and delighted to be among the first companies listed on ArcaEx," said Leng You-Bin, CEO of American Dairy. "Listing on ArcaEx opens us up to an entirely new investor base, one we could only have dreamed of a month ago."

Beginning in June 2005, the campaign will run in publications such as the Wall Street Journal, Barron's and Investor's Business Daily. A radio component of the campaign will run on Sirius Satellite and XM Radio.

About American Dairy

American Dairy, Inc. conducts operations in the People's Republic of China ("China") through its wholly owned subsidiary Feihe Dairy. Founded in 1962, Feihe Dairy is one of the leading producers and distributors of milk powder and soybean products in China. Feihe Dairy is located in Kedong County, China, and has been in operation since 2001. American Dairy also has a milk powder processing plant, Sanhao Dairy, in Kedong County.

Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners, and on new product development, variations in new product and service development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products and services, and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time.

Low volume today....

This looks like it is the answer to why the bid and ask were held. Looks very exciting for us!

ADIY lists on the Archipelago Exchange(SM) (ArcaEx(R))

Link - yahoo.com http://biz.yahoo.com/prnews/050418/nym240.html?.v=2

CHICAGO, April 18 /PRNewswire-FirstCall/ -- The Archipelago Exchange(SM) (ArcaEx®), the world's largest fully-electronic stock exchange, today announced that American Dairy, Inc., one of the leading producers and distributors of milk powder and soybean products in China, has listed exclusively on ArcaEx, a facility of the Pacific Exchange, under the four character symbol: ADIY.


"American Dairy's listing on ArcaEx is an exciting move for both the company and its investors as they stand to benefit from more liquidity and better information," said Jerry Putnam, CEO of the Archipelago Exchange. "This listing is also an important win for ArcaEx as we continue to expand our listings business which has seen increased momentum with other companies recently listing."

"It has been a long-standing goal of American Dairy's to list on a major U.S. stock exchange since becoming a U.S. publicly traded company in January 2003, and we are excited to become part of an organization that stands for competition and transparency and provides a top quality trading environment to all investors," says Leng You-Bin, CEO of American Dairy.

In addition to providing the advantages of fully-electronic trading, ArcaEx enables NYSE-, Amex- and Nasdaq-listed companies and their investors to reap the benefits of ArcaEx's investor focused market structure. ArcaEx operates as an all-electronic auction market, with an open limit order book matching buyers and sellers directly based on simple price and time priority, leveling the playing field for all market participants.

Currently over 230 companies are listed by PCX for trading on ArcaEx. In addition to its own listings, ArcaEx trades all NYSE, Nasdaq, and Amex listed stocks. Archipelago Holdings, Inc., the parent company of ArcaEx, announced on January 3, 2005 that the company has entered into a definitive agreement to acquire PCX Holdings, Inc., parent company of the Pacific Exchange and PCX Equities, Inc.

About ArcaEx

Archipelago Holdings (PCX: AX) operates The Archipelago Exchange(SM) (ArcaEx®) the first totally open all-electronic stock exchange in the United States. ArcaEx trades all Nasdaq-listed equity securities and exchange listed equity securities, including those listed on the New York Stock Exchange®, American Stock Exchange®, and Pacific Exchange®. In addition to offering core execution services, ArcaEx provides corporate clients with listing services and innovative data products. In 2004, Archipelago launched ArcaVision to provide corporate and trading clients with more transparent market data, analytical tools and access to market-wide and ArcaEx specific trading information. Archipelago Holdings completed its initial public offering in August 2004. For more information please visit http://www.arcaex.com.

About American Dairy

American Dairy, Inc. conducts operations in the People's Republic of China ("China") through its wholly owned subsidiary Feihe Dairy. Founded in 1962, Feihe Dairy is one of the leading producers and distributors of milk powder and soybean products in China. Feihe Dairy is located in Kedong County, China and has been in operation since 2001. American Dairy also has a milk powder processing plant, Sanhao Dairy, in Kedong County, China.

Forward-Looking Statements

Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on Archipelago's current expectations and involve risks and uncertainties that could cause Archipelago's actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Factors that could cause Archipelago's results to differ materially from current expectations include: general economic and business conditions, industry trends, competitive conditions, regulatory developments as well as other risks or factors identified in the Company's filings with the Securities Exchange Commission, including its Report on Form 10-K for the fiscal year ending December 31, 2004 which is available on the Company's website at http://www.archipelago.com. You should not place undue reliance on forward- looking statements, which speak only as of the date of this press release. Except for any obligation to disclose material information under the Federal securities laws, Archipelago undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this press release.


Contact:
Archipelago
Margaret Nagle
312-442-7083

hrm.. stock bid and ask are 'held'

wonder what is going on?

look at all of our volume for the past month - its been days since we had a 'goose egg' on volume.


Date Open High Low Close/Last Volume
13:10 6.500 6.500 6.500 6.500 1,700*
04/14/2005 6.350 6.350 6.350 6.350 400
04/13/2005 6.500 6.500 6.360 6.360 1,300
04/12/2005 6.000 6.950 6.000 6.850 1,700
04/11/2005 5.750 7.000 5.750 6.990 2,850
04/08/2005 5.550 5.750 5.500 5.550 6,242
04/07/2005 5.750 5.750 5.500 5.500 2,700
04/06/2005 5.750 5.850 5.750 5.750 3,986
04/05/2005 5.950 5.950 5.950 5.950 1,262
04/04/2005 5.500 5.950 5.500 5.950 2,000
04/01/2005 5.300 5.750 4.850 5.350 23,718
03/31/2005 4.800 4.800 4.800 4.800 1,256
03/30/2005 5.000 5.250 4.750 4.750 6,536
03/29/2005 5.000 5.000 5.000 5.000 200
03/28/2005 5.000 5.000 4.800 5.000 2,800
03/24/2005 4.800 4.800 4.800 4.800 0
03/23/2005 4.800 4.800 4.800 4.800 1,400
03/22/2005 4.680 4.800 4.680 4.800 0
03/21/2005 4.680 4.800 4.680 4.800 0
03/18/2005 4.680 4.800 4.680 4.800 3,243
03/17/2005 4.600 4.600 4.600 4.600 1,000
03/16/2005 4.600 4.600 4.600 4.600 715
03/15/2005 4.590 4.590 4.590 4.590 0
03/14/2005 4.590 4.590 4.590 4.590 500
03/11/2005 4.600 4.600 4.500 4.500 0
03/10/2005 4.600 4.600 4.500 4.500 0
03/09/2005 4.600 4.600 4.500 4.500 1,200
03/08/2005 4.630 4.630 4.600 4.600 900
03/07/2005 4.600 4.640 4.600 4.640 10,000
03/04/2005 4.660 4.690 4.550 4.550 3,200
03/03/2005 4.630 4.660 4.600 4.660 4,293
03/02/2005 4.670 4.670 4.600 4.600 2,800
03/01/2005 4.650 4.700 4.600 4.670 14,607
02/28/2005 4.650 4.650 4.650 4.650 100
02/25/2005 4.650 4.650 4.550 4.550 700
02/24/2005 4.600 4.650 4.550 4.650 2,000
02/23/2005 4.670 4.670 4.550 4.550 0
02/22/2005 4.670 4.670 4.550 4.550 0
02/18/2005 4.670 4.670 4.550 4.550 700
02/17/2005 4.670 4.670 4.650 4.650 3,690
02/16/2005 4.650 4.650 4.600 4.650 2,500
02/15/2005 4.650 4.650 4.650 4.650 500
02/14/2005 4.640 4.640 4.640 4.640 1,000
02/11/2005 4.640 4.640 4.640 4.640 700
02/10/2005 4.650 4.710 4.600 4.710 9,518
02/09/2005 4.550 4.550 4.550 4.550 204
02/08/2005 4.600 4.680 4.600 4.680 0
02/07/2005 4.600 4.680 4.600 4.680 0
02/04/2005 4.600 4.680 4.600 4.680 0
02/03/2005 4.600 4.680 4.600 4.680 6,000
02/02/2005 4.600 4.700 4.600 4.700 17,100
02/01/2005 4.600 4.600 4.590 4.590 2,000
01/31/2005 4.500 4.500 4.450 4.450 0
01/28/2005 4.500 4.500 4.450 4.450 0
01/27/2005 4.500 4.500 4.450 4.450 0
01/26/2005 4.500 4.500 4.450 4.450 2,659
01/25/2005 4.600 4.600 4.600 4.600 0
01/24/2005 4.600 4.600 4.600 4.600 800
01/21/2005 4.600 4.620 4.600 4.600 2,000
01/20/2005 4.380 4.500 4.380 4.500 1,859
01/19/2005 4.380 4.600 4.380 4.380 1,264
01/18/2005 4.600 4.600 4.600 4.600 0

* This data reflects the latest intra-day delayed pricing.


nasdaq.com - l

looks like a little profit taking today.

More on ADIY products...

http://www.americandairyinc.com/english/products.html

Also...

The principal activity of Feihe Dairy is the production and
distribution of milk powder and other dairy products. Feihe Dairy has two 99%
owned subsidiaries, Heilongjiang Sanhao Dairy Co., Limited ("Sanhao Dairy") and
BaiQuan Feihe Dairy Co., Limited ("BaiQuan Dairy"), that are engaged in the
production and supply of processed milk and soybean products for Feihe Dairy.

http://www.sec.gov/Archives/edgar/data/789868/000114420405011068/v015361_10-ksba.txt

Dick Milde

Zen lunatic420.... I think they are selling dried nonfat milk. Asians may be lactose intolerant but they are drinking more milk. govt is assisting industry to boost production by importing Western dairy cows from US and Australia.

They may also do soy milk but most of production is regular milk. Talked in 10K about having advantage of local dairies so milk didn't have to travel far before being processed. Their plant is apparently located one of the primary dairy regions of China. Bobwins

Most asians are lactose intolerant:
http://www.personalmd.com/news/n0216063253.shtml

Is this company selling mostly soy milk? Are they removing the lactose from the product?

Just curious.....might be a market here for Lactaid Milk.....or IESV's methane digesters, lol! :)

Wow, somebody paid the ask on a $6/$7 spread. I'm not complaining but MM made out on that deal!! Bobwins

This is going to be a sleeper, slow and steady and then a big jump as the market discovers it. IMHO. Good fortune to you with your investments in ADIY. :o)

TTM

thinkerman!

i am very glad I got in on ADIY down at the 4.37 level :)

woot.

this company is doing fantastic.

American Dairy Reports FY 2004 Net Income Increased By 207%
Friday April 1, 8:30 am ET
BEIJING--(BUSINESS WIRE)--April 1, 2005--American Dairy, Inc. (OTCBB:ADIY - News), one of the leading producers and distributors of milk powder and soybean products in China, announced today that it has filed its Form 10-KSB with the SEC.

Net income increased by 207% from $2,036,807 in 2003 to $6,258,380 for 2004. This increase in net income is attributable primarily to the following factors: (1) a 40% increase in sales; (2) a 35% increase in gross profit margins from 41% in 2003 to 52% in 2004; and (3) a 70% increase in distribution expenses, offset in part by: (i) a 21% decrease in general and administrative expenses, and (ii) a $600,134 decrease in enterprise income tax expense.

Revenues increased by $10,780,391 or 40% from $26,635,832 in 2003 to $37,416,223 in 2004. This increase was due primarily to expanding market areas and adding new value added products. Increase in sales is due to the following factors:

-- Increased popularity of "Feihe" brand of mainland China
following the successful advertising campaigns in the previous
year and extensive networks of Agencies in 25 provinces;

-- Demands boosted by improved and high-quality ingredients for
several products such as CA+Zn CPP series and nucleotides
series and families or markets mostly accepted these products;

-- Increase in overall sales quantity by 2,975,862 kilograms or
28% year-on-year to 13,478,645 kilograms for the year ended
December 31, 2004 compared to the same corresponding period of
10,502,782 kilograms in 2003; and

-- The dairy milk industry scandal in China in 2003 and the
resulting strict control over dairy producers (quality and
ingredient contains) drove many unscrupulous dairy producers
and their tainted dairy products out of the market. Consumers
concentrated on dairy products produced by such reputable
dairy producers as Feihe Dairy. Increases in sales quantities
of several high profit margin major products such as:

-- Milk Powder with Ca+Zn totaling 4,719,669 kilograms (2003:
3,718,421 kilograms) by 26.9% year-on-year;

-- CPP services totaling 2,398,578 kilograms (2003: 785,483
kilograms) by 205% year-on-year; and

-- Nucleotides series totaling 219,152 kilograms in 2004
(2003: 27,155 kilograms) by 707% year-on-year.

Basic Net Income Per Common Share = $0.52

About American Dairy, Inc.

American Dairy, Inc. conducts operations in the The People's Republic of China ("China") through its wholly owned subsidiary Feihe Dairy. Founded in 1962, Feihe Dairy is one of the leading producers and distributors of milk powder, soybean milk powder, land related dairy products in China. Feihe Dairy's 99% owned subsidiaries Sanhao Dairy and Baiquan Feihe Dairy produce and supply processed milk to Feihe Dairy.

Forward-Looking Statements

Statements in this document that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "anticipates," "will" or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission



TTM

American Dairy Selected to Be in ''Business and Beyond'' Production to Be Aired on CNBC

BEIJING--(BUSINESS WIRE)--March 1, 2005--American Dairy, Inc. (OTCBB: ADIY- News ), one of the leading producers and distributors of milk powder and soybean products in China, today announces that it has been selected by Platinum Television Group to be featured on "Investment Opportunity" in its Models of Excellence series, entitled "Investment Opportunities in China."

This segment will air one time nationally on CNBC, one time internationally on CNBC Europe, and will air 98 times regionally on Regional News Networks in many of the top 100 markets nationwide through regional cable operators based on view demographics, interests and the distribution checklist.

Platinum Television Group will provide a complete licensed and bonded production team (field production, graphics, music, voice-overs, program editing, set design and lighting) to complete all necessary taping for a completed feature American Dairy.

The content of the show will include: a) interview with a company representative; b) discussion to educate viewers about the booming economy in China; c) history of the company up to present with visuals of the manufacturing facilities; d) interviews about the expansion and market share growth plans; e) investment overview as well as how to find out more information about the company and investment opportunity.

Several promising Chinese companies were presented to the Platinum Television Group's panel of executive producers and advisory board members. After the presentation, American Dairy was one of the three Chinese companies invited to be featured on the show. Platinum Television Group's advisory board is made up of MIT and Harvard business school graduates, as well as magazine editors of Fortune, Forbes and INC.

"The purpose of the show is to ultimately help individuals find a good investment opportunity; we wanted to find a company that was poised to grow at the same pace as China's booming economy," explained creative director, Jack Schwartz of Platinum Television Group, "American Dairy is the perfect fit; dairy goes hand in hand with the Chinese economy and culture. Dairy has always been an integral part of an emerging society; the growth in dairy will be astonishing, as a result of an existing 1.3 billion population and an additional 20 million babies born each year."

About Platinum Television Group

Platinum Television Group, located in Deerfield Beach, FL, has been delivering the full scope of an advertiser's message to audiences for more than seven years though its innovative half-hour programs, which delve into many popular areas of interests for advertisers. Platinum currently offers 11 different shows, with more in the works, aired on targeted national and international cable networks, as well as on regional broadcast stations. The key is to educate, as well as entertain, viewers.

About American Dairy

American Dairy, Inc. conducts operations in the People's Republic of China ("China") through its wholly owned subsidiary Feihe Dairy. Founded in 1962, Feihe Dairy is one of the leading producers and distributors of milk powder and soybean products in China. Feihe Dairy is located in Kedong County, China and has been in operation since 2001. American Dairy also has a milk powder processing plant, Sanhao Dairy, in Kedong County, China.

Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners, and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws and defects in products and services and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time.


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©2003 American Dairy, Inc.

Press Release Source: American Dairy, Inc.


American Dairy, Inc. Appoints Two New Members to Its Board of Directors
Wednesday March 9, 4:00 am ET


BEIJING--(BUSINESS WIRE)--March 9, 2005--American Dairy, Inc. (OTCBB:ADIY - News), one of the leading producers and distributors of milk powder and soybean products in China, announces today that Dr. Kevin Likeng Tseng, an advanced analyst for Boeing, and corporate attorney, Kirk Gordon Downing, has agreed to join the company's Board of Directors.
Since 1997, Dr. Tseng has been an advanced analyst responsible for technological development and analysis for Boeing. Currently, Dr. Tseng is also a Director for E-Fang Accountancy Corporation. As director, Dr. Tseng performs managerial duties and is responsible for business consulting and marketing development.

Dr. Tseng received his Ph.D. in 1991 and M.S.E. in 1990, in Aerospace Engineering from the University of Michigan and in 2002, Dr. Tseng received his MBA, from the Marshall School of Business, at the University of Southern California.

Leng You-Bin, Chief Executive Officer of American Dairy, Inc., commented, "We will surely benefit from Mr. Tseng's business management background, Dr. Tseng is well educated and brings invaluable years of working experience to our company."

Mr. Tseng commented, "I am confident in the leadership and direction of American Dairy. The company is solid and headed towards major growth, I will do my best to assist this company reach its full potential."

Fluent in Chinese, Mr. Downing has been practicing corporate law and business litigation since 1980. Mr. Downing received his Juris Doctorate from Layola Law School and Bachelor degree from Portland State University.

Leng You-Bin, Chief Executive Officer of American Dairy, Inc., commented, "Mr. Downing's corporate legal background strengthens our corporate leadership by providing us with another piece to the puzzle. Mr. Downing brings years of experience and knowledge which will aid us in our future plans."

Mr. Downing responded, "The Company's management team is outstanding. They have tremendous industry experience and understanding of their market; this is the why the company has been able to grow so quickly. It is a privileged to be able to participate as a director for this rapidly growing company."

About American Dairy

American Dairy, Inc. conducts operations in the People's Republic of China ("China") through its wholly owned subsidiary Feihe Dairy. Founded in 1962, Feihe Dairy is one of the leading producers and distributors of milk powder and soybean products in China. Feihe Dairy is located in Kedong County, China and has been in operation since 2001. American Dairy also has a milk powder processing plant, Sanhao Dairy, in Kedong County, China.

Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners, and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws and defects in products and services and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time.

Contact:
American Dairy, Inc.
Mathew Wang, 213-225-6228
ir@americandairyinc.com

Source: American Dairy, Inc.

American Dairy, Inc. (OTCBB: ADIY), is the leading producer and distributors of milk powder and soybean products in China’s emerging dairy industry. The company merits investor attention since it has ambitious expansion plans. Increasing the consumption of milk products dovetails perfectly with Chinese government health promotion policies. ADIY is committed to remain as the leading domestic provider of high quality products for infants and mothers

TTM

Holding adiy.ob due to the profits announced by adiy.ob AND the growth in brand name awareness for ADIY in this growing consumer oriented economy. As China moves to a more industrial and less agricultural economy, I expect much more convenience oriented foods. Adiy.ob provides milk and other dried products. I don't think it will be a quick pop but rather a nice gradual recognition of the potential of this marketplace and increases in revs and eps from the new products being added. Bobwins

everything you just said.....


COMPLETELY OVER MY HEAD..lol

I have no clue....

none.

re: selling milk to over a billion people

Hello,

I have not read the links you supplied, but I wonder if the following...

Lactose Intolerance is most often caused by the deficient ability
to produce lactase enzyme to digest lactose (milk sugar).

... is being considered to alert the high percentage of people
that treated milk that only changes the sugar description
will allow one to consume milk without the nasty after effects
that they now experience.

For myself I drink LACTAID® Milk rather than others liquids
like soda that many consume without their awareness on what
may be serious health side effects.

Do an iHub search on member Zeev Hed for details using
search words like soda, calcium and phosphoric acid.

Only one danger I found using Lactaid Dietary Supplements,
it allows me to eat at one sitting a full ½ gallon of ice cream
and not have any nasty digestive problems :o)

http://www.lactaid.com

Doug

this company looks good. selling milk to over a billion people can be good business. :)

American Dairy Reports Q2 Net Income Increase of 800%
HEILONGJIANG PROVINCE, China

American Dairy, Inc.
Investor Relations/General Information, 213-255-6228
ir@americandairyinc.com

American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soy bean products in China, today announces that it has filed its Form 10-QSB with the SEC.

Net income increased by 800% from $160,576 during the three months ended June 30, 2003 to $1,445,280 for the comparable period in 2004. Components of sales and expenses resulting in this increase in net income are attributed primarily to the following factors:

1. 51% quarter-on-quarter increase in sales

2. 106% quarter-on-quarter increase in gross profit margins. Gross profit margin improved to 52% for the quarter ended June 30, 2004 compared to 39% for the same corresponding quarter in 2003

3. 49% quarter-on-quarter increase in distribution expenses to $2,100,427. Variance in selling expenses was principally attributable to the increases in advertisements, salaries and allowances, and supermarket display and consignment.

Sales revenues increased by $3,255,161 or 51% quarter-on-quarter to $9,620,155 for the quarter ended June 30, 2004 compared to the corresponding quarter in 2003 of $6,364,994.

EPS for Q2 2004 = $0.12 per share.

EPS for Q1 2004 = $0.10 per share.

EPS Total for 6 months = $0.22 per share ended June, 2004

The company projected sales of $48,000,000 and net income before taxes of $6,000,000 or $0.48 per share by year end 2004.

"Our extensive and rapidly growing sales network has enhanced the distribution of Feihe Dairy's products to new provinces all over China. The popularity of the `Feihe' trademark is reaching even some of the most remote areas," explained Leng You-Bin, CEO of American Dairy, Inc. "Our continual strife to be the leading Chinese brand has brought us to where we are today."

"With government encouragement and support, especially for private initiatives in the industry, dairy production in China has developed steadily since 1979. Dairy farmers are emerging in large numbers: according to statistics collated by the CGBCWBDC, dairy cows in Heilongjiang Province in 1991 amounted to 618,000, an increase of 261 percent over 1983 and almost four times more than in 1982."(1)

American Dairy, Inc.: New Soybean Powder Mill Increases Capacity by 350%
HEILONGJIANG PROVINCE, China

American Dairy, Inc.
Mathew Wang, 213-255-6228
http://www.americandairyinc.com
ir@americandairyinc.com

American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soybean products in China, today announces completion of their new soybean powder mill.

"China's soybean market is substantial," Roger Liu, ADIY's CFO announced. "Domestically, it is a $1.5 billion industry and growing at a rate of 20% per year."

The 37,674 sq. ft. soybean mill is a part of American Dairy's new 10 acre milk processing plant in Kedong County, Heilongjang Province, China. This workshop is a $3 million investment which will increase production capacity by 350%. By adopting Japanese technology and efficiency, American Dairy will be capable of processing an additional 5,000 tons of high quality, soybean powder annually, bringing production capacity to a total of 7,000 tons.

"We have access to an abundant amount of the highest quality, raw soybean available," Leng You-Bin, ADIY's chairman and CEO stated. "Heilongjang Province is one of the largest harvesting locations in the world."

Soybean powder sells at an average price of $1,400 per ton," said Mr. Liu. "We will see additional revenue from our soybean powder operation; production is expected to be near full capacity in 2005."

Soybean is the fourth largest crop after rice, wheat and corn. In China there are the following three soybean production regions:

-- 1. Northern Spring Sowing Region is the largest region of soybean production in China. In this region are the provinces of Heilongjiang, Jilin, Liaoning and Inner Mongolia. The planted area of soybean in this region reached 3.5 million ha. Total soybean production in this region occupies about 45% of the whole of China.

-- 2. Northern Summer Sowing Region is the second largest soybean area in China. The provinces of Henan, Shandong, Hebei, Anhui are in this region. Planted area and production of soybean in this region occupies about 30% of the whole of China.

-- 3. Southern Poly-Cropping Region. In this region, planted area and total production of soybean occupies about 20-25% of the total in China.(1)

CORRECTION:

In a previous press release dated, April 12, 2004 titled, "American Dairy Reports FY 2003 Net Income Increase of 526%", the company reported:

"It is projected that the new facility will be capable of processing 300 tons of fresh milk per day increasing production of milk powder an additional 20,000 tons annually. In addition, a new 20,000 ton per year soy bean powder facility is expected to be completed by October of 2004."

The company made a reporting error; the new soybean facility does not have a capacity of 20,000 tons instead it is capable of processing 5,000 tons annually. Only the milk powder facility will be capable of processing an additional 20,000 tons annually.

American Dairy, Inc.: New Soybean Powder Mill Increases Capacity by 350%
HEILONGJIANG PROVINCE, China

American Dairy, Inc.
Mathew Wang, 213-255-6228
http://www.americandairyinc.com
ir@americandairyinc.com

American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soybean products in China, today announces completion of their new soybean powder mill.

"China's soybean market is substantial," Roger Liu, ADIY's CFO announced. "Domestically, it is a $1.5 billion industry and growing at a rate of 20% per year."

The 37,674 sq. ft. soybean mill is a part of American Dairy's new 10 acre milk processing plant in Kedong County, Heilongjang Province, China. This workshop is a $3 million investment which will increase production capacity by 350%. By adopting Japanese technology and efficiency, American Dairy will be capable of processing an additional 5,000 tons of high quality, soybean powder annually, bringing production capacity to a total of 7,000 tons.

"We have access to an abundant amount of the highest quality, raw soybean available," Leng You-Bin, ADIY's chairman and CEO stated. "Heilongjang Province is one of the largest harvesting locations in the world."

Soybean powder sells at an average price of $1,400 per ton," said Mr. Liu. "We will see additional revenue from our soybean powder operation; production is expected to be near full capacity in 2005."

Soybean is the fourth largest crop after rice, wheat and corn. In China there are the following three soybean production regions:

-- 1. Northern Spring Sowing Region is the largest region of soybean production in China. In this region are the provinces of Heilongjiang, Jilin, Liaoning and Inner Mongolia. The planted area of soybean in this region reached 3.5 million ha. Total soybean production in this region occupies about 45% of the whole of China.

-- 2. Northern Summer Sowing Region is the second largest soybean area in China. The provinces of Henan, Shandong, Hebei, Anhui are in this region. Planted area and production of soybean in this region occupies about 30% of the whole of China.

-- 3. Southern Poly-Cropping Region. In this region, planted area and total production of soybean occupies about 20-25% of the total in China.(1)

CORRECTION:

In a previous press release dated, April 12, 2004 titled, "American Dairy Reports FY 2003 Net Income Increase of 526%", the company reported:

"It is projected that the new facility will be capable of processing 300 tons of fresh milk per day increasing production of milk powder an additional 20,000 tons annually. In addition, a new 20,000 ton per year soy bean powder facility is expected to be completed by October of 2004."

The company made a reporting error; the new soybean facility does not have a capacity of 20,000 tons instead it is capable of processing 5,000 tons annually. Only the milk powder facility will be capable of processing an additional 20,000 tons annually.

American Dairy Announces the Arrival of New Milk Cows
HEILONGJIANG PROVINCE, China

American Dairy, Inc.
Mathew Wang, 213-255-6228
(Investor Relations, General Information)
http://www.americandairyinc.com
Email:ir@americandairyinc.com

American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soybean products in China, announces the arrival of new milk cows imported from Australia and New Zealand.

$12 million was granted by the Kedong County government to supply the importation of cows to local dairy farmers. American Dairy, Inc. has exclusive rights to the milk produced by these newly imported cows. The company's team of specialists will educate local dairy farmers in properly raising these new cows.

"The Chinese government is committed to improving the nation's agriculture," said Roger Liu, CFO of American Dairy, "Kedong County government has agreed to allow local dairy farmers five years to repay the grant, interest free."

As a result, the number of milk cows under contract for American Dairy increases from 13,000 to 30,000. In 2005, the 17,000 additional cows are projected to produce 100,000 tons of raw milk.

Compared to domestic milk cows, imported cows have a much higher ability to produce milk; 6 tons and 3.5 tons of raw milk per year, respectively. In addition, imported cows can be milked for 10 lactation seasons while domestic cows can only be milked for eight.

"By 2006, we expect the new milk cows to supply an additional 300 tons of milk per day," stated Leng You-Bin, chairman and CEO of ADIY, "our daily production of milk should increase by 300%."

ADIY N/A N/A

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American Dairy, Inc. CEO Receives Award
HEILONGJIANG PROVINCE, China

American Dairy, Inc.
Mathew Wang, 213-255-6228
ir@americandairyinc.com
http://www.americandairyinc.com

American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soybean products in China, announces that China's Dairy Products Science and Technology Committee has recognized the company's CEO, Leng You-Bin, by awarding him as one of China's "Top 10 Dairy Industry Contributors."

The award honors 10 distinguished individuals; winners were selected based on quality of product and contributions toward research and development of China's dairy industry. Over one thousand dairy companies in China were evaluated by the committee; the 10 winners consist of five executives from dairy product enterprises and five government scientific researchers.

American Dairy, Inc.'s "CPP milk powder series"(1) and "Liver Treasure milk powder"(2) leads all other Chinese enterprises in quality and production technology. Liver Treasure milk powder is a patented product designed to promote liver health.

"American Dairy is one of China's top companies in the infant milk powder market," said Leng. "It is an honor for me to receive this award. 20 million babies are born in China each year; we are committed to provide the highest quality products."

I'm expecting big things from American Dairy. Chinese desire for milk is growing and this company has the land, water, capital and the support of the Chinese government to fulfill that desire. They also large supplier of soybeans and their rate of growth is tremendous. Good fortune with your investments. :o)