Synutra says Chinese government investigation finds no link between its infant milk powder and premature development, despite accusations; agency also finds no banned hormones in Synutra's formula

QINGDAO, China and ROCKVILLE, Maryland , August 16, 2010 (press release) – Synutra International, Inc. (Nasdaq:SYUT - News), a leading infant formula company in China and a producer, marketer and seller of nutritional products for infants, children and adults, today announced that the Ministry of Health ("MOH") has found no link between Synutra's infant milk powder and premature development in infants.

The MOH announced on August 15th, after investigating claims that Synutra's infant milk formula was linked to premature development in three infants, that no banned hormones were found in the 42 samples of Synutra infant milk formula, including samples from the affected families' homes and 31 samples from 14 other Chinese and foreign infant formula producers. The MOH believes that the three claims of premature development cannot be linked to Synutra's infant milk powder.

Mr. Liang Zhang, Chairman and CEO of Synutra stated, "We are very pleased with the test results issued by China's top health authority, which support Synutra's steadfast commitment to product quality and consumer safety. As a trusted provider of infant formula in China, Synutra has always made quality assurance a top priority. We are devoted to promoting the health of children in China and will continue to invest heavily in research, quality control, formulation and ingredients to maintain our industry-leading standards."

About Synutra International, Inc.

Synutra International Inc. (Nasdaq:SYUT - News) is a leading infant formula company in China. It principally produces, markets and sells its products under the "Shengyuan" or "Synutra" name, together with other complementary brands. It focuses on selling premium infant formula products, which are supplemented by more affordable infant formulas targeting the mass market as well as other nutritional products and ingredients. It sells its products through an extensive nationwide sales and distribution network covering 30 provinces and provincial-level municipalities in China. As of June 30, 2010, this network comprised over 560 independent distributors and over 1,000 independent sub-distributors who sell Synutra products in over 74,000 retail outlets.

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