Shineco, Inc. announced that its subsidiary, Fuzhou Meida Health Management Co. Ltd. has entered into Distribution Agreements (the "Agreements") for its water-soluble phospholipid concentrate health food beverage with a projected goal of more than $30 million in sales with six distribution companies, for a term of three years. Phospholipids are organic compounds which are utilized in numerous ways in food and other industries.

Further, phospholipids are a key component of cell membranes, forming a bilayer that acts as a barrier that allows some molecules to pass through while blocking others. phospholipids have important health effects and are an important element in cell growth and other physiological processes. The Company has developed and patented a technologically advanced process utilizing pure physical extraction technology for this highly important organic material.

Its water solvent large column chromatography ultrafiltration membrane protects the natural structure and activity of phospholipids, as no chemical solvent is involved in the process. Through precise parameter design and regulation, the Company's ultrafiltration membrane structure process restores the natural bilayer of phospholipid molecules and achieves a precise separation and extraction of phospholipid molecules. This patented technologically advanced process results in extraction efficiency, minimizing costs and maximizing yield.

Shineco plans to continue to research and develop the application of the naturally active water-soluble phospholipids in the medical, food, beauty and other fields. Shineco also plans to continue to develop new high value-added products to meet the changing needs of the healthcare and medical sectors. In addition, it intends to optimize its global sales network to develop and expand the overseas markets for its products.

Through continuous innovation and the development of high-quality products, the Company expects to foster a brighter and healthier future for people around the globe.