Feihe Intl (NYSE:ADY)

BEIJING and LOS ANGELES, October 31, 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 that the Company paid $16.3 million to Sequoia Capital China Growth Fund I, L.P. and certain of its affiliates (collectively, "Sequoia") in redemption of the second tranche of 656,250 shares (the "Redemption"), pursuant to its redemption agreement with Sequoia. The second closing of the redemption was required by October 31, 2011, and two additional redemptions are scheduled to occur in the next 6 months.

Mr. Liu Hua, the Company's Vice Chairman and Chief Financial Officer, stated, "We are pleased that we paid off the second installment before the deadline in the redemption agreement. We are confident in our business and in our ability to pay down the other two installments when due."

BEIJING and LOS ANGELES, September 30, 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 that the Company has successfully closed the sale of its equity interests of two dairy farms.

Mr. Leng You Bin, the Company's Chairman and Chief Executive Officer, stated, "This successful transaction is a special milestone for the Company and it refines our strategic path going forward. We are extremely proud to be China's first vertically integrated infant formula company with secured access to premium quality raw milk from professional dairy farms. I grew up raising dairy cows and have been in this industry for over 20 years, so I understand the challenges that the Chinese dairy industry faces. Therefore, we spent the last 10 years laying the foundation. We started to build milk collection stations in 2001 to make sure all of our raw milk was collected by imported world-class equipment to avoid any air or manual contact. In addition, we believed it was important to ensure the quality of our infant formula products by controlling the source and quality of the raw milk, including the feeding forage used for cows that produce the milk. In 2007, we began construction of two world-class demonstration dairy farms, serving as a model for modern dairy farming in China. The Company also ensured that the feed the Company purchased for its dairy cows met or exceeded international standards through cooperating with strategic alliance partners. All of our infant formula products now come from the dairy farms' premium quality raw milk, over which we have quality control and which is manufactured in our Gannan and Kedong facilities with world leading processing equipment imported from well-known European manufacturing companies."

BEIJING and LOS ANGELES, August 1, 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 that it has entered into an Equity Purchase Agreement (the "Agreement") with Haerbin City Ruixinda Investment Company Ltd. (the "Purchaser"). Pursuant to the Agreement, the Company agreed to sell to the Purchaser all of its equity interests of Heilongjiang Feihe Kedong Feedlots Co., Limited and Heilongjiang Feihe Gannan Feedlots Co., Limited for an aggregate purchase price of approximately US$131.8 million, comprised of approximately US$17.8 million in cash and six equal quarterly deliveries of raw milk in an aggregate value of approximately US$114.0 million.

Until the Purchaser has met its milk delivery obligations to the Company, the Purchaser must exclusively supply raw milk to the Company and thereafter must prioritize any Company requirements for extra raw milk. The Company will specify the feeding forage and feeding method and the quality of raw milk that the Purchaser provides. The exclusive supply period for the Company will be an unlimited time period.

Mr. Leng You Bin, the Company's Chairman and Chief Executive Officer, stated, "We are extremely pleased to enter into the Equity Purchase Agreement with Haerbin City Ruixinda Investment Company Ltd. for the two world-class demonstration dairy farms. A professional company will operate the two dairy farms and we will be able to get the same premium quality dairy farm raw milk at an unlimited exclusive supply period. This transaction will allow us to improve our liquidity and reduce our debt level, as well as eliminate our dairy farm operating expenses, while still ensuring our supply of high quality milk. It will also allow us to focus on infant formula manufacturing and marketing in order to achieve our long-term leadership position within China's infant formula industry."