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Matt Berry

Disclosure: I have a short

position in CHBT

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Every year Chinese companies must

submit their audited financial statements

to the local branches of the State

Administration for Industry and Commerce(SAIC). CHBT submitted its 2009

statements to the Shanghai branch

(SHAIC):

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SHAIC documents such as the one I present can

be obtained from credit report agencies inChina, one of which is “Inter-credit”

http://www.inter-credit.net/.

I encourage all interested parties to retrieve the

documents for independent confirmation.

Qingdao Inter-Credit Services Pte Co., Ltd.

2306 Parkson International Business Center,44-

60# Zhongshan Road, Qingdao, China 266001

Tel: 86 532 8202 2131

Fax: 86 532 82022810

info@inter-credit.net

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$70,000,000 Off 

• Total revenue for 2009 was approximately$530,000 USD, as claimed in documents retrievedfrom SHAIC.

• For the same time period, China-biotics claimedrevenue of over $71,000,000 USD in its SECfilings.

• This is a difference of more than $70,000,000dollars.

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Based upon the March 2010 10-K, CHBT’s only

revenue generating subsidiary in China for 2009

was Shanghai Shining Biotechnology Co. Ltd:上海

双金生物科技有限公司 (Shanghai Shining).

We can even remove the issues of “consolidatedstatements” and “other subsidiaries.” Sales for

Shanghai Shining’s star brand alone, as claimed in

the USA, exceeds total revenue claimed in

Shanghai Shining’s Chinese filing by a factor of 40to 1.

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“We launched Shining Essence in Shanghai in

April 2001, and it [sic] currently our best-selling

product. Sales of Shining Essence represent

approximately 29% of our total sales for the year

ended March 31, 2010, 40% for the year ended

March 31, 2009, ….” ~ March 2010 10-k

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If so, 2009 revenue for Shining Essence

alone would be over $20,000,000 USD, noteven close to the $530,000 USD claimed in

China as total revenue.

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Shanghai Shining seal

Currency is RMB

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The same financials. This one has the auditor’s seal (QINGDAO ZHENQING

CERTIFIED PUBLIC ACCOUNTANTS, CO., LTD. SHANGHAI BRANCH).

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Shanghai Shining’s official web page

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Cropped official web page

(foreground) over cropped

financial statement

(background). Note that the

company named on the

statement has the sameChinese characters as the

company named on the

Shanghai Shining official web

page (which the company

translates into SEC documents

as , “Shanghai Shining

Biotechnology Co. Ltd.“ )

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Official web sites for

the Shanghai Branch

of the State

Administration for

Industry andCommerce (SHAIC): at

the top, in English; in

the middle, Chinese;

and at the bottom, in

blue, the introduction

to the 2009 SHAIC

filings.

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Translation: “Income

Statement,” “Total Revenue,”

and “Previous Period.”

Th f d d i h 2009

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The foreground document is the 2009

statement that I received. The background

document is the 2008 statement that Chinese

Company Analyst received, translated, and

presented last year.

His 2008 current year figures match the 2009

 previous year figures in the statement Ireceived.

“current year”

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Currency Conversion through xe.com: revenue is only

$530,000 USD. If I use the exchange rate for

December 31, 2009, the amount is even less.

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SHAIC statements covered January 1, 2009

to December 31, 2009. I take the same

numbers from the March 2010 10-k.

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$70,000,000 Off 

• Total revenue for 2009 as claimed in Chinawas approximately $530,000 USD.

• For the same time period, China-Bioticsclaimed revenue of over $71,000,000 USD inits SEC filings

• This is a difference of more than $70,000,000dollars.

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China-Biotics, Inc. (CHBT)

• SHAIC 2009 and 2008 official documents, madeavailable for download by myself, Matt Berry:

http://tinyurl.com/chbtShanghai

• SHAIC 2008 and 2007 official documents, withanalysis and English translation, made availableby Chinese Company Analyst

• Independent translation of the 2009 SHAICIncome Statement:

http://tinyurl.com/chbtIncomeStatement

• Informal Youtube Video Presentation:

http://tinyurl.com/CHBTvideo

• Other links:

•

Most CHBT Outlets Never Existed• CHBT Store Verification Results Start Rolling In

• The China-Biotics Store Verification Website

• Chinese Company Analyst

• Citron Research

CIK#: 0001271057 (see all companyfilings)

Mailing Address NO 999 NINGQIAO

ROAD, JINQIAO EXPORT PRO PUDONG

SHANGHAI F4 201206

Business Address NO 999 NINGQIAOROAD, JINQIAO EXPORT PRO PUDONG

SHANGHAI F4 201206 86 21 5834 9748

Formerly: OTISH RESOURCES INC

(filings through 2006-01-05)

SIC: 1400 - MINING, QUARRYING OF

NONMETALLIC MINERALS (NO FUELS)

fState location: F4 | State of Inc.: DE |

Fiscal Year End: 0305

(Assistant Director Office No 4)