Kiwa Bio-Tech Revenues for 1st Half Exceed $3.25 Million

Kiwa Bio-Tech Revenues for 1st Half Exceed $3.25 Million

August 15, 2007

    BEIJING and CLAREMONT, Calif., Aug. 15
/Xinhua-PRNewswire-FirstCall/ -- Kiwa Bio-Tech Products
Group Corporation (OTC Bulletin Board: KWBT) announced that
revenues for the second quarter of 2007 increased more than
35% over the first quarter of 2007 exceeding $1,872,000 and
were 139 times revenues of just $13,351 for the same period
in the previous year.

    Revenues for the first half of 2007 were $3,256,000
compared to only $24,374 in the first half of 2006. These
significant increases are due to the growth of Kiwa's new
bio-enhanced feed business.

    Review of Second Quarter

    Costs of sales were $1,798,905 and $12,545 for the
three months ended June 30, 2007 and 2006, respectively.
The increase in cost of sales was primarily due to the
rapid increase of sales. Gross profit was $73,742 for the
three months ended June 30, 2007, representing an average
profit margin of 3.9%. The profit margins for
bio-fertilizer and bio-enhanced feed were 18.9% and 3.8%,
respectively.

    Mr. Wei Li, Chairman and CEO of Kiwa, stated, "The
significant improvement in revenues reflects the efforts at
the 60 distributors in our joint venture, Tianjin Kiwa Feed
Co., Ltd. We appreciate the efforts of our team in building
this business and we are now focusing on raising the profit
margins for bio- enhanced feed products."

    Net loss increased by $780,979 or 148.5% to $1,306,893
(including non-cash expenses of $537,164) for the three
months ended June 30, 2007, as compared to $525,914 for the
three months ended June 30, 2006. This increase resulted
from the following factors: (1) increase in gross profit of
$72,936; (2) increase in operating expenses of $192,923; (3)
increase in interest expenses of $247,233; (4) there was
$750 of net loss born as a minority shareholder in a
subsidiary in 2007 and no similar loss in 2006; and (5) we
recognized $414,509 expenses in connection with urea
entrepot trade during the current period.

    In July 2007, the Company entered into three
termination agreements with each party of the Urea entrepot
trade for the termination of contracts between the Company
and Shengkui Technologies, Hua Yang Roneo Corporation and
UPB International Sourcing Limited. Pursuant to these
termination agreements, the Company shall have neither
rights nor obligations under previous contracts in
connection with urea entrepot trade with exception to
commission due to UPB. Based on these facts, we classified
urea entrepot trade as discontinued operation and charged
all unamortized payments and the remaining commission due
into expenses in the second quarter.

    Please refer to documents filed today with the
Securities and Exchange Commission for additional
information on the results for the second quarter and first
half of 2007.

    About Kiwa Bio-Tech Products Group Corporation 

    The Company develops, manufactures, distributes and
markets innovative, cost-effective, and environmentally
safe bio-technological products for agricultural and
natural resources and environmental conservation. The
Company's products are designed to enhance the quality of
human life by increasing the value, quality and
productivity of crops and decreasing the negative
environmental impact of chemicals and other wastes. For
more information about the Company, please review documents
filed with the SEC (www.sec.gov) or visit the Company's
website at www.kiwabiotech.com.

    This press release contains information that
constitutes forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Any such forward-looking statements
involve risk and uncertainties that could cause actual
results to differ materially from any future results
described by the forward-looking statements. Risk factors
that could contribute to such differences include those
matters more fully disclosed in the Company's reports filed
with the Securities and Exchange Commission. The
forward-looking information provided herein represents the
Company's estimates as of the date of the press release,
and subsequent events and developments may cause the
Company's estimates to change. The Company specifically
disclaims any obligation to update the forward-looking
information in the future. Therefore, this forward-looking
information should not be relied upon as representing the
Company's estimates of its future financial performance as
of any date subsequent to the date of this press release.

    Contact:
    Kiwa Bio-Tech Products Group Corporation
    Yvonne Wang
    [phone]
    [e-mail]

    Robert Schechter
    Equity Communications
    212-499-6809
    [e-mail]



    Kiwa Bio-Tech Products Group Corporation
    Consolidated Statements of Operations and Comprehensive
Income (Unaudited)


             Item                Three Months Ended      
Six Months Ended
                                      June 30,             
   June 30,
                                 2007         2006       
2007         2006

    Net sales                 $1,872,647     $13,351  
$3,256,740     $24,374
       Cost of sales           1,798,905      12,545   
3,044,675      19,955
    Gross profit                  73,742         806     
212,065       4,419

    Operating expenses:
       Consulting and
        professional fees        267,678     243,914     
457,139     288,314
       Officers' compensation     89,427     109,102     
154,469     115,070
       General and
        administrative           196,499      79,660     
375,523     148,594
       Selling expenses           63,642      19,601     
207,267      22,889
       Research and development   43,495       8,461      
92,799      16,362
       Depreciation and
        amortization              29,591      37,069      
60,864      70,232
       Allowance and provision       398         -         
  664         -
    Total operating expenses     690,730     497,807   
1,348,725     661,461
    Operating loss              (616,988)   (497,001) 
(1,136,660)   (657,042)
    Interest expenses - net     (276,146)    (28,913)   
(401,904)    (53,317)
    Minority interest in a
     subsidiary's loss               750         -         
6,921         -
    Loss from continuing
     operations                 (892,384)   (525,914) 
(1,531,643)   (710,359)

    Loss on discontinued
     operations:
       Discontinued urea
        entrepot trade -
        Commission paid
        to a related party      (414,509)        -      
(414,509)        -
    Net loss                 $(1,306,893)  $(525,914)
$(1,946,152)  $(710,359)
    Other comprehensive
     income (loss):
       Translation
        adjustment               (37,337)      9,556    
(161,131)     16,197
    Comprehensive loss       $(1,344,230)  $(516,358)
$(2,107,283)  $(694,162)

    Net loss from continuing
     operations per common
     share - basic and diluted  $(0.0120)   $(0.0085)   
$(0.0210)   $(0.0118)
    Net loss on discontinued
     operations per common
     share - basic and diluted  $(0.0056)       $-      
$(0.0057)       $-
    Weighted average
     number of common shares
     outstanding - basic and
     diluted                  74,157,432  61,598,567  
72,971,896  60,423,775



    Kiwa Bio-Tech Products Group Corporation
    Consolidated Balance Sheet

                    Item                     June 30, 2007 
 December 31, 2006
                                                (unaudited)
       (audited)
    ASSETS
    Current assets
       Cash and cash equivalents                  $208,229 
        $498,103
       Accounts receivable, net of bad
        debt allowance of $265,900
        and $258,667, respectively                 153,659 
         929,446
       Inventories                                 882,962 
         541,340
       Prepaid expenses                            186,816 
         302,007
       Other current assets                         45,348 
          57,011
    Total current assets                         1,477,014 
       2,327,907
    Property, Plant and Equipment:
       Buildings                                 1,079,195 
       1,046,116
       Machinery and equipment                     633,316 
         585,282
       Automobiles                                  43,841 
          47,772
       Office equipment                             81,560 
          78,096
       Computer software                             9,474 
           9,240
    Property plant and equipment - total         1,847,386 
       1,766,506
    Less: accumulated depreciation                (352,185)
        (286,039)
    Property plant and equipment - net           1,495,201 
       1,480,467
    Construction in progress                        43,424 
          34,548
    Intangible asset - net                         314,864 
         337,027
    Deferred financing costs                       170,793 
         211,793
    Deposit to purchase the proprietary
     technology                                    126,444 
         126,443
    Total assets                                $3,627,740 
      $4,518,185
    LIABILITIES AND STOCKHOLDERS' EQUITY
     (DEFICIENCY)
    Current liabilities
       Accounts payable and accrued expenses    $1,507,207 
        $983,980
       Construction costs payable                  317,095 
         366,879
       Due to related parties                      397,400 
         496,806
       Current portion of bank notes payables        4,157 
           5,405
    Total current liabilities                    2,225,859 
       1,853,070
    Long-term liabilities, less current portion:
        Unsecured loans payable                  1,510,078 
       1,472,717
        Bank notes payable                             -   
           1,351
        Long-term convertible notes payable      2,171,401 
       2,365,962
        Discount relating to warrants issued
         with long-term convertible notes       (1,066,342)
      (1,371,446)
    Total long-term liabilities                  2,615,137 
       2,468,584

    Minority interest in a subsidiary               95,292 
         103,362

    Shareholders' equity (deficiency)
       Common stock - $0.001 par value
        Authorized 200,000,000 shares at
        June 30, 2007 and December 31, 2006
        respectively. Issued and outstanding
        75,120,710 and 70,149,556 shares at
        June 30, 2007 and December 31, 2006,
        respectively                                75,121 
          70,150
       Preferred stock - $0.001 par value
        Authorized 20,000,000 shares, nil
         shares issued and outstanding
         at June 30, 2007 and December
         31, 2006, respectively                       -    
            -
       Additional paid-in capital               8,714,848  
      8,311,975
       Stock-based compensation reserve          (389,342) 
       (523,468)
       Deficit Accumulated                     (9,712,807) 
     (7,766,654)
       Accumulated other comprehensive income       3,632  
          1,166
    Total shareholders' equity (deficiency)    (1,308,548) 
         93,169
    Total liabilities and stockholders'
     equity                                     $3,627,740 
      $4,518,185