BEIJING and LOS ANGELES, Sept. 26, 2011 /PRNewswire Asia-FirstCall/ -- Feihe International, Inc. (NYSE: ADY; "Feihe International" or the "Company") (formerly known as American Dairy, Inc.), one of the leading producers and distributors of premium infant formula, milk powder and soybean, rice and walnut products in China, today announced its recent R&D achievements, including its participation in the Program of China's 12th Five-Year Plan for National Economic and Social Development ("The 12th Five-Year Plan") and the completion of clinical trial feeding tests for its super premium brand of infant formula, AstroBaby.

The 12th Five-Year Plan is an important statement of national policy that guides the direction and objectives of China's economic and social development for the coming five years. It is a blueprint for governmental planning in key sectors from 2011 to 2015.

Mr. Leng You Bin, the Company's Chairman and Chief Executive Officer, stated, "We are extremely pleased to announce that we are one of the first companies hosting the program, a privilege provided by China's Ministry of Science and Technology. The Company will focus on research and technology issues relating to the processing of milk-based products and will also conduct research and analyze key infant formula ingredients, including breast milk, and China's infant formula market. Feihe is the only dairy company participating in this exclusive program and we are honored to have been chosen. In addition, our super premium infant formula, AstroBaby, a high-end infant formula designed to meet the nutritional needs of infants during their most crucial development period, completed clinical trials. AstroBaby was successfully introduced in 2010 and by the second quarter of 2011, sales increased to approximately 2% of the Company's total infant formula sales. As a result of the Company's performance and accomplishments, the Department of Science and Technology of Heilongjiang Province provided a 5 million RMB grant."

The clinical trials are performed by governmental agencies and measure growth and behavioral development, and other indicators for 150 babies with a testing period of 90 days. The clinical trials are voluntary research and fully compliant with safety and ethical standards. The clinical trial feeding test results indicate that, of the infant formula tested, AstroBaby was closest to breast milk in terms of babies' physical growth, digestive systems, language and personal social development.

Mr. Leng continued, "These recent achievements demonstrate our high level of R&D capabilities and leading position in China's dairy industry, which we believe will significantly increase our presence and brand recognition in China's infant formula market. As one of the few dairy companies not involved in the melamine crisis and with almost 50 years of product safety, we are confident that we can improve our footprint as a leading infant formula company in the coming years."

About Feihe International, Inc.

Feihe International, Inc. (NYSE: ADY) (formerly known as American Dairy, Inc.) is one of the leading producers and distributors of premium infant formula, milk powder, and soybean, rice and walnut products in the People's Republic of China. Feihe International conducts operations in China through its wholly owned subsidiary, Feihe Dairy, and other subsidiaries. Founded in 1962, Feihe Dairy is headquartered in Beijing, China, and has processing and distribution facilities in Kedong, Qiqihaer, Baiquan, Gannan, Longjiang, Shanxi, and Langfang. Using proprietary processing techniques, Feihe International makes products that are specially formulated for particular ages, dietary needs and health concerns. Feihe International has over 200 company-owned milk collection stations, seven production facilities with an aggregate milk powder production capacity of approximately 1,950 tons per day and an extensive distribution network that reaches over 80,000 retail outlets throughout China. For more information about Feihe International, Inc., please visit http://ady.feihe.com.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking information about the Company's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about the Company's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "targets," "could," "would," and similar expressions. Because these forward-looking statements are subject to a number of risks and uncertainties, the Company's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2010, as amended, and in other reports filed with the United States Securities and Exchange Commission and available at www.sec.gov. The Company assumes no obligation to update any such forward-looking statements.

CONTACT

In the U.S.:

ir@americandairyinc.com

In China:

May Shen, IR Manager

86-10-8457-4688 x8810

shenchunmei@americandairyinc.com

SOURCE Feihe International, Inc.