Natural Dairy Announces Annual Results for the 14 Months Ended 31 May 2010 Business Transformaation Nearly Completed to Benefit from Rapid Growth of Domestic Consumption and Dairy Market in China (Financial Report‪)‬

Hong Kong, Nov 2, 2010 - (ACN Newswire) - Natural Dairy (NZ) Holdings Limited and its subsidiaries ("Natural Dairy" or the "Group", Stock Code: 0462), have announced its annual results for the 14 months ended 31 May 2010. For the 14 months ended 31 May 2010, revenue of the Group amountedto HK$59,576,000, 989% higher compared with the 12-month FY 2009 period, mainly attributable to the introduction of the food and beverage trading. However, the Group recorded an annual operating loss of HK$203,244,000 under the Hong Kong AccountingStandard due to the revaluation and reconsolidation of its wholly-owned subsidiary's iron mining assets which were transferred illegally. Basic and diluted loss per share was HK cents 37.95. As at 31 May 2010, net assets were HK$508 million and net cash inflow from capital fundraising activities reached HK$808 million, indicating a very strong financial position.