Investor Presentation August 2009

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the company’s ability to market existing and new products, ability to access to capital for expansion, and changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, dependence on our flagship product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation was developed by the Company, is intended solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This presentation is based upon information available to the public, as well as other information from sources which management believes to be reliable, but is not guaranteed by CHBT as being accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice. Safe Harbor Statement

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the company’s ability to market existing and new products, ability to access to capital for expansion, and changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, dependence on our flagship product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation was developed by the Company, is intended solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This presentation is based upon information available to the public, as well as other information from sources which management believes to be reliable, but is not guaranteed by CHBT as being accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.

China-Biotics, Inc. The leading manufacturer of naturally occurring probiotics in China.

China-Biotics, Inc.

The leading manufacturer of naturally occurring probiotics in China.

What are Probiotics? “ Live microorganisms which when administered in adequate amounts confer a health benefit on the host” “… can play an important role in immunological, digestive and respiratory functions and could have a significant effect in alleviating infectious disease in children. ” – World Health Organization Historical Context Pasteur first introduced the concept that bacteria are necessary for human health Metchnikoff received 1908 Nobel Prize for work on the link between the immune system and intestinal bacteria Benefits of probiotics Improves health of G.I. tract Stimulates immune system Helps break down nutrients properly Reduces creation of toxins Reduces symptoms of lactose intolerance Decreases prevalence of allergy in susceptible individuals Reduces some risks associated with certain cancers 3 basic methods of delivery Dairy products Dietary supplements (capsules, tablets, or powders) Other food and beverages * Sample: Bifido Bacteria, one kind of probiotic Source: www.usprobiotics.org

“ Live microorganisms which when administered in adequate amounts confer a health benefit on the host”

“… can play an important role in immunological, digestive and respiratory functions and could have a significant effect in alleviating infectious disease in children. ” – World Health Organization

Historical Context

Pasteur first introduced the concept that bacteria are necessary for human health

Metchnikoff received 1908 Nobel Prize for work on the link between the immune system and intestinal bacteria

Benefits of probiotics

Improves health of G.I. tract

Stimulates immune system

Helps break down nutrients properly

Reduces creation of toxins

Reduces symptoms of lactose intolerance

Decreases prevalence of allergy in susceptible individuals

Reduces some risks associated with certain cancers

3 basic methods of delivery

Dairy products

Dietary supplements (capsules, tablets, or powders)

Other food and beverages

Projected Rapid Growth Chinese Probiotic Usage and Growth (Metric Tons) Source: Domestic Probiotics Market Analysis and Forecast Report by Beijing Leadership Management Consulting Co. Limited Year Milk Products Animal Feed Capsule Form Other Totals (mt) 2006 2,000 1,000 100 300 3,400 2010 6,500 2,500 600 1,000 10,600

Chinese Probiotic Usage and Growth (Metric Tons)

Market Snapshot Chinese affluence drives demand for health food Demand for health food in China expected to reach $9.7B by 2010 (Source: Pacific Bridge Medical) Demand for milk/yogurt increasing significantly Sales of yogurt drinks rose by 30% per year, 2005- 2007 Chinese Bureau of Statistics forecasts tenfold increase in domestic dairy consumption, 2007-2015 Restricted use of antibiotics stimulates probiotic demand Over-prescription of antibiotics in China Chinese government is encouraging probiotics supplements to combat antibiotics abuse China has limited probiotics production capacity Current demand relies on imports from European manufacturers

Chinese affluence drives demand for health food

Demand for health food in China expected to reach $9.7B by 2010

(Source: Pacific Bridge Medical)

Demand for milk/yogurt increasing significantly

Sales of yogurt drinks rose by 30% per year, 2005- 2007

Chinese Bureau of Statistics forecasts tenfold increase in domestic dairy consumption, 2007-2015

Restricted use of antibiotics stimulates probiotic demand

Over-prescription of antibiotics in China

Chinese government is encouraging probiotics supplements to combat

antibiotics abuse

China has limited probiotics production capacity

Current demand relies on imports from European manufacturers

Equity Snapshot Listed on the Nasdaq Global Market Symbol: CHBT Price (08/20/09): $14.76 Market Cap: $252.1 mil Shares Outstanding: 17.1 mil Revenue (ttm): $58.2 mil Net Income* (ttm): $20.1 mil Non-GAAP Diluted EPS* (ttm): $1.18 P/E* (ttm): 12.5 P/S (ttm): 4.3 P/B (mrq): 3.5 EV/EBITDA (ttm): 7.6 Auditor: BDO McCabe Co. Ltd. Fiscal Year End: March 31 *Adjustment to exclude gain related to the change in fair value of convertible notes

Listed on the Nasdaq Global Market

Symbol: CHBT

Price (08/20/09): $14.76

Market Cap: $252.1 mil

Shares Outstanding: 17.1 mil

Revenue (ttm): $58.2 mil

Net Income* (ttm): $20.1 mil

Non-GAAP Diluted EPS* (ttm): $1.18

P/E* (ttm): 12.5

P/S (ttm): 4.3

P/B (mrq): 3.5

EV/EBITDA (ttm): 7.6

Strong revenue and profit growth with high margins Proprietary technology creates sustainable, decisive competitive advantages Strong brand with significant franchise value Rising demand for China’s probiotics driven by increasing wealth and consumption of dairy products Entry into bulk additives market and retail expansion further propel growth Attractive valuation Investment Highlights

Strong revenue and profit growth with high margins

Proprietary technology creates sustainable, decisive competitive advantages

Strong brand with significant franchise value

Rising demand for China’s probiotics driven by increasing wealth and consumption of dairy products

Entry into bulk additives market and retail expansion further propel growth

Attractive valuation

Corporate Overview The largest domestic probiotics supplier in China Shining is one of the most recognized brands in Shanghai Launched 150-metric-ton manufacturing facility in September 2009 Proprietary technology offers significant cost and product quality advantages 379 employees (06/30/2009): 30 R&D staff with Masters Degree or above 107 retail outlets in 13 cities (06/30/2009) Operates in retail and bulk additive spaces Began trading on Nasdaq Global Market in October 2008 8.4 10.9 FY2006 FY2007 FY 2008 21.9 30.6 ($ in Millions) 42.3 14.2* *Adjustment to exclude gain related to the change in fair value of convertible notes 16.9* 54.2 FY 2009 11.4 15.4 4.5* 5.3* Q1 FY 2009 Q1 FY 2010 Net Income Revenues

The largest domestic probiotics supplier in China

Shining is one of the most recognized brands in Shanghai

Launched 150-metric-ton manufacturing facility in September 2009

Proprietary technology offers significant cost and product quality advantages

379 employees (06/30/2009): 30 R&D staff with Masters Degree or above

107 retail outlets in 13 cities (06/30/2009)

Operates in retail and bulk additive spaces

Began trading on Nasdaq Global Market in October 2008

Products in Retail Business * For the three months ended June 30, 2009 Shining Essence (28.0% of sales*) Shining Signal (7.2% of sales*) Shining Golden Shield (13.0% of sales*) Shining Energy (8.9% of sales*) Facilitates brain cell development and increases alertness Calms digestive system, enhances G.I. health and protects / strengthens liver function Reduces high blood pressure, high blood sugar levels and hyperlipidemia Vitamin C, L. Arginine, and other amino acids L. acidophilus & B. bifidium Monascus rice and L. acidophilus B. adolescentis & lentinusedodes Enhances the body’s immune system Product Key Components Uses Other newer products (19.7% of sales): Shining Essence Stomach Protection Capsules Shining Probiotics Protein Powder Shining Sicanel Shining Beauty Essence

Products in Bulk Business Additives for Yogurt Essential to yogurt-based drinks CAGR of 31% for yogurt segment growth from ’05 to ’10 in China (estimated by McKinsey Research) Additives for Milk Powder Commonly added to infant formula Improve digestion in babies Additives for Other Products Ice cream Buns and bakery products Dietary supplements and pharmaceuticals Animal feeds

Additives for Yogurt

Essential to yogurt-based drinks

CAGR of 31% for yogurt segment growth from ’05 to ’10 in China (estimated by McKinsey Research)

Additives for Milk Powder

Commonly added to infant formula

Improve digestion in babies

Additives for Other Products

Ice cream

Buns and bakery products

Dietary supplements and pharmaceuticals

Animal feeds

Strategies for Growth Two-Pronged Strategy Health food supplement business: geographic e xpan sion Launch bulk additive business Leveraging Highly recognized Shining brand O ur cost and quality advantage Strong R&D capability: introduce new and complementary products G rowing demand for probiotics : launched 150 mt / year production facility in Sept. 2009 to capitalize on the market opportunity mt = metric tons Shining Retail Outlet

Two-Pronged Strategy

Health food supplement business: geographic e xpan sion

Launch bulk additive business

Leveraging

Highly recognized Shining brand

O ur cost and quality advantage

Strong R&D capability: introduce new and complementary products

G rowing demand for probiotics : launched 150 mt / year production facility in Sept. 2009 to capitalize on the market opportunity

107 outlets in 13 cities as of 6/30/2009; Outlets: 550 square feet / center Initial investment about $ 40,0 00 per outlet Financed through operating cash flow Payback period per outlet < 1 year Specialty counters in large markets Retail Expansion Strategy

107 outlets in 13 cities as of 6/30/2009;

Outlets: 550 square feet / center

Initial investment about $ 40,0 00 per outlet

Financed through operating cash flow

Payback period per outlet < 1 year

Specialty counters in large markets

Launch “Shining Probiotics” for bulk additives line Produce bulk food additives for dairy and animal feed industr ie s Trial production of 150 mt / year manufacturing facility began in Sept. 2009 Products sold directly to major international and domestic dairy and food manufacturers Revenue potential of new plant = $ 11 0 MM per year Bulk Additive Strategy CY = Calendar Year; mt = metric tons

Launch “Shining Probiotics” for bulk additives line

Produce bulk food additives for dairy and animal feed industr ie s

Trial production of 150 mt / year manufacturing facility began in Sept. 2009

Products sold directly to major international and domestic dairy and food manufacturers

Revenue potential of new plant = $ 11 0 MM per year

New Industry-Leading Facility The only probiotics plant currently in development in China that will be able to meet the domestic demand for bulk additives Initial revenue opportunity at Phase I capacity = $110MM / year Phase 1 = 150 mt / year of production capacity Phase 2 = scalable to 300 mt / year Production yield allows company to sell for as little as one-s ix th competitors’ price while maintaining 70%+ gross margin Will commence full commercial production by end of December 2009 CY = Calendar Year; mt = metric tons

The only probiotics plant currently in development in China that will be able to meet the domestic demand for bulk additives

Initial revenue opportunity at Phase I capacity = $110MM / year

Phase 1 = 150 mt / year of production capacity

Phase 2 = scalable to 300 mt / year

Production yield allows company to sell for as little as one-s ix th competitors’ price while maintaining 70%+ gross margin

Will commence full commercial production by end of December 2009

P roprietary Production Process Leading edge production technology Fermentation: Very high production yield = low production cost and high margins Superior probiotic strands: Better functionality and product quality Micro-encapsulation: Very long shelf life Bacteria-Based Activation Bacteria-Based Cultivation Multistage Fermentation Bacteria Extraction Granule Emulsification Freeze-Drying Micro-Encapsulation Double-Aluminum Packaging

Leading edge production technology

Fermentation: Very high production yield = low production cost and high margins

Superior probiotic strands: Better functionality and product quality

Micro-encapsulation: Very long shelf life

Superior Shining Probiotics Active Ingredient Shining Chinese Competitors Japanese Competitors Live Bifidobacterium bifidum (cfu/g) >2.0 X 10 11 1.0 X 10 9 1.0 X 10 10 Live Lactobacillus Acidophilus (cfu/g) >2.0 X 10 11 Not recommended Not recommended Maximum Shelf Life (%) >70 (two years) Not recommended 69.4 (5.5 months) Shelf Life Shining European Patents (EP0634167A1) 8 months (%) 85 71 16 months (%) 75 60 24 months (%) 70 36

Strong Financial Performance CAGR=26.4% 17.4% *Adjustment to exclude gain related to the change in fair value of convertible notes CAGR=35.3% 35.5%

Income Statement * * The earnings per share figures reflect an increase in fully diluted weighted-average shares related to the issuance of convertible notes in December 2007. For Fiscal Years Ended March 31 $ 0.99** 16,875* 21,783 70.1% FY2009 $ 0.64 10,905 14,931 70.9% 30,610 Net sales Gross profit % Operating income Net income 14,176* Diluted EPS $ 0.80 ** * Adjustment of gain related to the change in fair value of convertible notes 54,197 30,610 Net sales 42,321 70.9% 18,315 FY2007 ($ in thousands) FY2008 Q1 FY09 Q1 FY10 11,371 15,412 5,768 6,868 4,476* 5,254* $ 0.26** $ 0.31** 71.3% 70.8%

Balance Sheet June 30 , March 31, ($ in thousands) 2009 2009 2008 2007 Cash and cash equivalents 70,824 Total assets 120,804 Total liabilities 55,408 Stockholder’s equity 65,396 Current assets 87,370 Current ratio 2.7 Current liabilities 32,336 79,979 41,897 26,992 93,792 44,580 3.0 2.0 26,896 20,670 49,396 20,670 44,395 23,910 64,310 77,407 95,671 130,896 2.7 35,962 59,628 71,268

Attractive Valuation Herbalife Ltd. Shanghai Jiaoda Onlly Co., Ltd China-Biotics, Inc. AVERAGE (Excluding CHBT) Nu Skin Enterprises Inc. Perrigo Co. Martek Biosciences Company Ticker Market Trailing PEG P/S EV / Cap P/E (09/10) (ttm) EBITDA Data as of August 20, 2009, Yahoo! Finance and Thomson Financial *Adjustment to exclude gain related to the change in fair value of convertible notes CHBT MATK $ 252.1M 12.5* 0.4 4.3 7.6 799.9M 19.9 1.4 2.2 7.8 PRGO 2.6B 19.8 0.9 1.3 10.1 600530.SS 345.6M 50.0 N/A 8.1 N/A NUS 1.1B 17.6 1.2 0.9 7.2 HLF 2.0B 11.4 0.8 0.9 6.2 1.4B 23.7 1.1 2.7 7.8

Mr. Jinan Song, Founder, Chairman and CEO F ounder and CEO since 1999; Bachelor’s degree in Polymers; Masters degree in politics and economics Mr. Lewis Fan, CFO 15 years of combined Wall Street and healthcare industry experience MBA in finance, New York University/ MS in medicinal chemistry, University of Michigan / BA in biology and chemistry, Luther College. M s . Eva Yan, Executive Vice President Participation in formulating corporate development plans, implementing internal control procedures and business negotiations. Mr. Raymond Li, VP of Finance 20 years of finance experience in financial reporting, due diligence, M&A activity, staff management and tax issues Mr. Henry Tai, VP of Corporate Development 20 years of experience in direct investments, corporate finance and auditing in Australia, China, Hong Kong and the United Kingdom Dr. Shuguang Fang, Chief Technology Officer 10 years of experience in bio-engineering; team member of No. 863 strategic project and national 9 th and 10 th 5-year projects in China; Ph.D. in Chemical Bio-engineering from East China University of Science and Technology Dr. Kai Ma, Director of Research and Development 10 years of experience in microbiology; team member of the national Nos. 863 and 973 strategic projects; Ph.D. in Microbiology from Institute of Microbiology of Chinese Academy of Sciences Management

Mr. Jinan Song, Founder, Chairman and CEO

F ounder and CEO since 1999;

Bachelor’s degree in Polymers; Masters degree in politics and economics

Mr. Lewis Fan, CFO

15 years of combined Wall Street and healthcare industry experience

MBA in finance, New York University/ MS in medicinal chemistry, University of Michigan / BA in biology and chemistry, Luther College.

M s . Eva Yan, Executive Vice President

Participation in formulating corporate development plans, implementing internal control procedures and business negotiations.

Mr. Raymond Li, VP of Finance

20 years of finance experience in financial reporting, due diligence, M&A activity, staff management and tax issues

Mr. Henry Tai, VP of Corporate Development

20 years of experience in direct investments, corporate finance and auditing in Australia, China, Hong Kong and the United Kingdom

Dr. Shuguang Fang, Chief Technology Officer

10 years of experience in bio-engineering; team member of No. 863 strategic project and national 9 th and 10 th 5-year projects in China; Ph.D. in Chemical Bio-engineering from East China University of Science and Technology

Dr. Kai Ma, Director of Research and Development

10 years of experience in microbiology; team member of the national Nos. 863 and 973 strategic projects; Ph.D. in Microbiology from Institute of Microbiology of Chinese Academy of Sciences

Strong revenue and profit growth with high margins Proprietary technology creates sustainable, decisive competitive advantages Strong brand with significant franchise value Rising demand for China’s probiotics driven by increasing wealth and consumption of dairy products Entry into bulk additives market further propels growth Attractive valuation Investment Highlights

Strong revenue and profit growth with high margins

Proprietary technology creates sustainable, decisive competitive advantages

Strong brand with significant franchise value

Rising demand for China’s probiotics driven by increasing wealth and consumption of dairy products

Entry into bulk additives market further propels growth

Attractive valuation

Appendix: Reconciliation of Non-GAAP Financial Data (1) Diluted earnings per share based on 17,080,000 weighted average shares $0.19 $3,236,750 $0.34 $5,767,749 Amount per consolidated statement of operations ($0.07) (1,239,000) $0.03 514,000 Non-cash gains (losses) from change in fair value of convertible bonds Adjustments $0.26 $4,475,750 $0.31 $5,253,749 Adjusted Amount Diluted EPS(1) Net Income Diluted EPS(1) Net Income Non-GAAP Net income Q1 2009 Q1 2010

Contact Information CCG Investor Relations Crocker Coulson, President 1325 Avenue of the Americas, Suite 2800 New York, NY 10019 Phone: (646) 213-1915 E-mail: [email_address] Web Site: www.ccgirasia.com

Thank you. August 2009