China Kangtai Cactus Files Amended 2010 10-K

China Kangtai Cactus Biotech Inc. (PINK SHEETS: CKGT), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, today filed an amended 10-K filing with the U.S. Securities and Exchange Commission for the fiscal year ended December 31, 2010.

The company has restated its consolidated financial statements at December 31, 2010 and 2009, and for the years then ended (which were previously included in the company’s Form 10-K/A filed with the SEC on April 15, 2011) in order to correct the recording of the provisions for reserve for allowances, returns and doubtful accounts.

Accordingly, as previously reported, the company deferred gross profit on sales of products estimated to be excess product in our distribution channel by expensing the provision for reserve for allowances, returns and doubtful accounts and increasing the balance sheet reserve for allowances, returns and doubtful accounts (which was reflected parenthetically on the consolidated balance sheet as a reduction of accounts receivable). As restated, the company has eliminated that part of the provisions for reserve for allowances, returns, and doubtful accounts relating to estimated excess product in our distribution channel and has adjusted the reserve to $0 at December 31, 2010 and 2009, based on the aging of the related accounts receivable and our historical experience of inconsequential returns and bad debts.

In addition, the Company has also restated its consolidated statements of cash flows for the years ended December 31, 2010 and 2009, in order to correct the presentation of the receipt of proceeds from the December 19, 2009, sale of Qitaihe City land use rights and property, plant and equipment and correct dates stated in paragraph 3 of Note 5 of the December 31, 2010, Form 10-K/A.

Paragraph 3 of Note 5 of the December 31, 2010, Form 10-K/A (filed with the SEC on April 15, 2011) as originally worded incorrectly stated that a draft agreement with the Government of Qitaihe City for sale of Qitaihe City land use rights and property, plant and equipment was entered into December 19, 2009, and that an agreement of forfeiting was signed on January 27, 2010. In fact, the definitive agreement was signed on November 27, 2009. On January 27, 2010, Qitaihe City unilaterally amended the payment terms, extending them from the original 60 days to 90 days.

The amended filing showed income from operations of $11,286,868 for 2010. This compared with income from operations of $11,316,576 for 2010 stated in the prior filing. Net income attributable to common shareholders for 2010 was revised to $11,761,267 in the amended filing from $11,790,975 in the prior filing. Comprehensive income for 2010 was revised to $13,275,217 in the amended filing from $13,277,787 in the prior filing.

On the balance sheet as of December 31, 2010, total assets were revised to $49,471,662 in the amended filing from $48,467,635 in the prior filing.

China Kangtai Cactus CEO Jinjiang Wang said, “After a thorough review of our financial reports, we are pleased to finally be able to provide our shareholders with this revision. We are currently working on completing our 10-K filing with the SEC for fiscal year 2011 and our 10-Q filing for the first quarter of 2012. We do not yet have specific dates when this will be completed, but the work is well under way. Our business is running well and we believe current indications are we are headed toward a good year in 2012.”

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, health and energy drinks, wine, extracts and powders, cigarettes 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.

China Kangtai’s online investor kit, including an investment profile, press releases, current price quotes, stock charts and more is available at http://www.hawkassociates.com/profile/ckgt.cfm. To subscribe to future releases via e-mail alert, visit http://www.hawkassociates.com/about/alert/.

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 demand and acceptance, 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.