Shengtai Pharmaceutical, Inc. Announces Progress of Trial Production and Quality Control Tests at New Glucose Facility

WEIFANG, Shandong, China, June 17 /Xinhua-PRNewswire-FirstCall/ -- Shengtai Pharmaceutical, Inc. (OTC Bulletin Board: SGTI) (“Shengtai Pharmaceutical” or “the Company”), a leading manufacturer and distributor of high-quality, pharmaceutical grade glucose products in China, today provided an update on the progress of trial production and quality control tests at its new glucose plant.

Shengtai Pharmaceutical has nearly finished the construction of the new glucose production complex with expected annual production capacity of 120,000 metric tons. The new facility has been equipped with state-of-the-art,

high-tech operational machines and since May 2008, the Company successfully launched trial production of glucose products. This facility combined with the Company’s existing glucose facility will provide total production capacity of 210,000 metric tons of glucose per year. Once the plant is fully operational, Shengtai’s glucose quality will be able to match that produced in the rest of the world.

The trial production and quality tests are categorized by products -- food and beverage grade glucose, monohydrate glucose and anhydrous glucose. The Company has adopted a series of production and quality control tests to measure the results of the trial production stage, including pH scale, specific gravity, DE scale, temperature and luminousness.

The trial production results for food and beverage grade glucose were the first to pass the tests due to their relatively lower testing standards. Monohydrate glucose and anhydrous glucose products are still in trial production and undergoing quality control tests due to their higher testing standards. The Company still needs to install supplemental equipment to complete their tests.

“We expect the monohydrate glucose and anhydrous glucose trial production and quality tests will be able to meet all production requirements and testing standards by the end of June 2008,” said Chairman and CEO, Mr. Qingtai Liu, “We will start our official production as soon as we successfully complete trial production and related tests, and expect the new glucose facility to reach its full production capacity in about one and a half years. More cornstarch produced from our new cornstarch production facility will be utilized internally to produce glucose out of our new glucose facility, which should improve our overall gross profit margin. The additional contribution from our new glucose plant should further satisfy the robust demand for glucose products, especially for pharmaceutical grade glucose products.”

About Shengtai Pharmaceutical, Inc.

Shengtai Pharmaceutical, Inc. through its wholly-owned subsidiary Shengtai Holding, Inc. (SHI), a New Jersey corporation, and the Chinese operating company of Weifang Shengtai Pharmaceutical Co., Ltd., is a leading manufacturer and supplier of pharmaceutical grade glucose used for medical purposes, and the glucose and cornstarch products for the food and beverage industry and for industrial production in China. For more information about Shengtai Pharmaceutical, Inc., please visit http://www.shengtaipharmaceutical.com .

Safe Harbor Statement

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by the Company, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding our ability to prepare the company for growth, the Company’s planned capacity expansion in 2008 and predictions and guidance relating to the Company’s future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand especially in the pharmaceutical industry, pricing and demand trends for the Company’s products, changes to government regulations, risk associated with operation of the Company’s new facilities, risk associated with large scale implementation of the company’s business plan, the ability to attract new customers, ability to increase its product’s applications, cost of raw materials, downturns in the Chinese economy, and other information detailed from time to time in the Company’s filings and future filings with the United States Securities and Exchange Commission. Investors are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, please contact:

Company Contact:

Ms. Melody Shi

CFO

Shengtai Pharmaceutical, Inc.

Tel: +1-949-468-7078

Email: shengtaicfo@hotmail.com

Investor Relations Contact:

Mr. Crocker Coulson

President

CCG Elite Investor Relations

Tel: +1-646-213-1915 (NY Office)

Email: crocker.coulson@ccgir.com

Web: http://www.ccgelite.com