Market distribution of Hunan Yahua Dairy Co., Ltd.

1. The milk powder marketing network covers 29 provinces and municipalities directly under the central government, with 90% market coverage at the provincial level and 74.4% at the municipal level. By the end of February 2003, there were 296 distributors and 362 distributors.

2. The provinces \ municipalities directly under the Central Government covered by the network are:

Hunan, Hubei, Guangdong, Guangxi, Jiangsu, Jiangxi, Sichuan, Yunnan, Guizhou, Shaanxi, Shanxi, Jilin, Fujian, Shandong, Hebei, Henan, Tibet, Inner Mongolia, Heilongjiang, Liaoning and Anhui.

\ Xinjiang \ Hainan \ Zhejiang \ Ningxia \ Chongqing \ Tianjin \ Beijing \ Shanghai