Zhongpin issued warrants to purchase 3,450,000 shares of its common stock in a private placement, along with Series A convertible preferred stock, in January 2006 that are exercisable for a period of five years at an exercise price of $5.00 per share.

In December 2006, Zhongpin issued additional warrants to purchase an aggregate of 884,796 shares of its common stock with an exercise price of $5.50 per share. As a result of the exercise of the warrants, Zhongpin received net cash proceeds of approximately $13 million.

"We believe the exercise of these warrants demonstrates a strong vote of confidence in Zhongpin's recent execution and strong prospects. The net proceeds of approximately $13 million from these warrant exercises strengthens our balance sheet and provides additional liquidity that will support our strategy to build shareholder value as we continue to expand our production capacity," said Xianfu Zhu, CEO of Zhongpin.