Synutra responds to infant formula allegations

Aug 12 2010

Synutra International, Inc. (Nasdaq: SYUT), a leading infant formula company in China and a producer, marketer and seller of nutritional products for infants, children and adults, today released the following public comment in response to a media report in China which linked hormone levels in the Company's milk powder with alleged premature development and sexual precocity.

Mr. Liang Zhang, Chairman and CEO of Synutra stated, "Since the initial speculation in reports that our products were responsible for premature development and precocity in children, there has been a tremendous increase in commentary in the press relating to this incident such as the People's Daily and Bloomberg. The media is increasingly relaying a more balanced take on the reality that there is no scientific evidence supporting the allegation that our products are responsible for these claims."

"We are seeing many industry experts also speak out about the lack of scientific evidence between infant formula and these claims. The recent press conference by the Ministry of Health (MOH) communicated that a definitive cause for premature development in the infant cases submitted could not be determined and that there are many possible contributing factors, which may cause premature development. These points are both positive for us and are in-line with our belief that Synutra products are safe and in no way related to these claims."

"Furthermore, we are in the process of taking legal action and are evaluating the various timing, jurisdiction and channels through which we may protect our brand. We intend to prosecute the parties responsible for these accusations to the furthest extent possible. While we offer our sympathy to any families experiencing health challenges, we firmly believe that our products are not involved in the claims recently made, and we feel this media event will pass. We firmly believe they will illustrate our unwavering product quality and commitment to consumer safety."

The Company will continue to proactively provide updates on the situation. To ensure access to the most updated information, the Company has created a "Synutra in the News" tab on the Company's IR website ( http://www.synutra.com ), which contains links to the Company's most recent public statements and media articles.