American Dairy, Inc. (OTC BB: ADIY), one of the leading producers and distributors of milk powder and soy bean products in China, today announces that it will be introducing walnut powder products to the market place in September, 2004. Walnut powder contains substantial Omega 3 fatty acids, premium protein, vitamins, minerals and fiber.

Heilonjiang Province, China July 27, 2004 -- American Dairy, Inc. (OTC BB: ADIY), one of the leading producers and distributors of milk powder and soy bean products in China, today announces that it will be introducing walnut powder products to the market place in September, 2004. Walnut powder contains substantial Omega 3 fatty acids, premium protein, vitamins, minerals and fiber.

These walnut products are specially formulated for infants, pregnant women and postnatal recovery women. Nutrients obtained from walnuts assist in the growth of the fetus' and infants' brain development. It also provides as a healthier whole food source for women during the prenatal and post natal recovery phase.

Leng You-Bin, ADIY's chairman and CEO said. "It is fascinating how a simple food like walnuts provides so many health benefits." According to the FDA, "The Food and Drug Administration announced that a qualified health claim will soon appear on product labels for walnuts and the reduced risk of coronary heart disease."

Studies have shown that walnuts may help lower cholesterol levels, provide cardiovascular benefits, and induce weight loss. "The launch of our walnut powder products will provide American Dairy with a new and significant source of revenue," Roger Liu, CFO, "our long-term goal is to be the leading Chinese brand in fetus and infant dairy market."

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 at home and abroad, 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.