I. Project name: Comprehensive utilization and processing of domestic animal and poultry by-products.

II. Project to be undertaken by: Jiangsu Yurun Foodstuff Industrial Group Co., Ltd.

III. Briefs of project undertaker:

Jiangsu Yurun Foodstuff Industrial Group Co., Ltd. is a group enterprise integrating foodstuff, investment and financing, real estates and high-tech industries, with total assets of 3.9 billion yuan and a total number of over 13000 employees. In 2003 the industrial gross output value was 6.2 billion yuan, including 590 million yuan as profit and taxes. Yurun Group has passed all certifications for ISO9001, HACCP and ISO14000 systems, and has been appraised as an¡°Enterprise with AAA credit standing¡±for successive years.

IV. Main content of project:

For this project, it is planned to import advanced high-tech technology at home or abroad, for comprehensive utilization and processing of byproducts from slaughtering of domestic animals and poultry (bones, blood and internal organs), to make high tech biological products.

V. Expected total investment and expected economic gains of project:

1. Total investment of project: 100.277 million yuan

2. Construction period of project: 2 years

3. Expected rate of return: 20%

4. Expected investment recovery period: 4.3 years

Annual sales income 1500 million yuan, including annual profit 22.5 million yuan.

VI. Preliminary suggestion on cooperation and project progress:

1. Suggestion on cooperation: joint venture or cooperative joint venture, with the cooperation partner providing capital or technology.

2. Initial period work progress and present status: the project has been approved.

VII. Contact:

Address: 17 Yurun Road, Jianye District, Nanjing, Jiangsu Province

Zip: 210041

Contact person: Zhang Degang

Telephone: 86-25-86801548

Fax: 86-25-86801547

E-mail: fzb@yurun.com.cn