HARBIN, -- 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 it has received RMB 36.30 million (approximately US $5.31 million) in compensation from the Chinese government for a 49,000 square meters (approximately 12.1 acres) property located in Qitaihe city, Heilongjiang province. Kangtai also received RMB 4.3 million (approximately US $630,000) from a manufacturer for equipment transfer, resulting in total receipts of US $ 5.94 million. This transaction has no impact on China Kangtai’s operations.

As part of Qitaihe City Xinxing District Rebuilding and Construction of Flyover System, China Kangtai entered into an agreement with the city of Qitaihe whereby China Kangtai would turn over land use rights to 49,000 square meters of real property and all buildings located on the property in Qitaihe city.

In March 2009, China Kangtai acquired the assets of Qitaihe Kangwei Biotechnology Co., Ltd to produce cactus extracts and powders. The purchase included the right to use 49,000 square meters of state-owned land in Qitaihe City, as well as housing, machinery, equipment and related facilities. The purchase price was approximately $5.42 million. Although payment was made in August 2009, the acquired equipment has been in the testing stage. China Kangtai never started production at the Qitaihe facility.

China Kangtai CEO Jinjiang Wang said, “This transfer has no impact on our current operations. We continue to produce cactus extracts and powder through our own facilities and existing manufacturing partners. We are currently looking for additional third parties for cooperative production agreements. Under such agreements, we will provide patented technology, raw materials, quality control guidelines and technical support. The other party will provide processing facilities and production labor and we will pay production fees to the other party.”

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.