New patented cactus-based cigarettes launched by China Kangtai Cactus Biotech

Sep 2 2009

China Kangtai Cactus Biotech Inc. (OTC Bulletin Board: CKGT), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that the company has successfully completed the trial production of cactus-based cigarettes and plans to launch two products in the forth quarter in 2009: (i) low nicotine and (ii) zero nicotine cigarettes. The new patented cactus cigarettes, under the registered trademark "Shengcao" brand, are expected to increase sales by approximately $220,000 in the fourth quarter.

The low nicotine cigarette is made from cactus, honeysuckle, ginkgo biloba leaves and a small amount of tobacco leaves. This cactus-derived cigarette lowers tar and nicotine content by 70%.

The zero nicotine cigarette is made without any tobacco leaves. It offers taste and enjoyment equivalent to regular cigarettes, but eliminates nicotine. It also greatly reduces harm related to secondhand smoke.

China Kangtai CEO Jinjiang Wang said, "The cactus cigarette market shows huge potential for growth in China. China has about 390 million smokers, accounting for 30% of global smokers. Our revolutionary product can not only capture a significant portion of smokers, but also promote consumer consumption in our other health products such as nutraceuticals, nutritious food, health and energy drinks, beer, wine and liquor. We expect the launch of our cactus health-preserving cigarettes also will improve the brand name and reputation of our company."

China Kangtai was awarded patents for these two cactus cigarettes from China's State Intellectual Property Office in 2008. The patent numbers are 2006100102091 and 2006100102087.