China Kangtai Cactus Biotech Inc. (OTCBB:CKGT), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that the company has signed a technology agreement with Shandong Yishui Ruibosi Tobacco Ltd. (Ruibosi), a subsidiary of China Tobacco Shandong Industrial Co. Ltd.

China Kangtai Cactus's cigarette brand Sheng Cao is already widely accepted by Chinese consumers. To increase the quality and taste of the Sheng Cao cigarettes, the company has introduced a paper process technology that is broadly used internationally. The process produces a reconstituted tobacco sheet that is mixed with cactus and Chinese herbal medicine.

The Sheng Cao cigarette ingredients include tobacco, cactus, honeysuckle, ginkgo and tea leaves producing a high quality cactus-based cigarette with a very special flavor. The process not only improves the taste, it also reduces the amount of nicotine, tar and carbon monoxide in the final product. With a strong supply of cactus reconstituted tobacco, the company has the capacity to produce cigarettes in its own plant in Macau as well as sell its ingredients to other tobacco companies.

China Kangtai Cactus is the first company to cooperate with the tobacco industry to produce a cactus based tobacco product. Shandong Yishui Ruibosi Tobacco Ltd., which was established in 2002 under the authorization of State Tobacco Monopoly Bureau, is a subsidiary of China Tobacco Shandong Industrial Co. Ltd. Ruibosi is one of the four tobacco manufacturers designated by the State Tobacco Monopoly Bureau to develop reconstituted tobacco using the paper process technology. The technology is the most advanced worldwide with both environmental and cost saving advantages.

Mr. Changsen Xue the VP of Ruibosi said, ?China Kangtai Cactus is an outstanding company that has shown remarkable growth in the cactus business. We have great confidence in the future sales of Sheng Cao cigarettes, which we believe will have very promising market prospects and growth potential. We have no doubt that consumers will like the taste very much.?

China Kangtai CEO Jinjiang Wang said, ?The reconstituted tobacco paper process is extensively used in the industry. We have successfully produced samples and plan to begin full production in May of 2011. Sheng Cao is already a popular brand and we believe this new technology will provide a further boost for our company's long-term development while it also will be accretive to earnings and will significantly broaden future sales.?

Cigarette sales are the company's fastest growing business segment. For the first nine months of 2010, China Kangtai Cactus reported cigarette sales of $1.7 million versus sales of $42,000 in the first nine months of 2009. The company reported total sales of $23.7 million in the first nine months of 2010, a gain of 32% from $18.0 million in sales in the first nine months of 2009.

About China Kangtai Cactus Biotech, Inc.

China Kangtai Cactus Biotech, Inc. is a leading grower, developer, producer, and marketer of cactus-derived products, including nutraceuticals, nutritious food, health and energy drinks, beer, wine and liquor, extracts and powders, and animal feed. China Kangtai controls over 387 acres of plants and maintains an active R&D group that holds 18 product patents and is seeking another 12. China Kangtai's high-quality ?green? products are sold throughout China via a distribution network that covers 12 of China's 23 provinces and two of China's four municipalities. More information may be found at http://www.biocactus.com or via e-mail: chinakangtai@gmail.com.

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This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

Hawk Associates
Frank Hawkins or Amy Lin, 305-451-1888
kangtai@hawkassociates.com