IND DAIRYTECH LTD REPORTS THIRD QUARTER OF 2010 FINANCIAL RESULTS AND APPOINTMENT OF KIT SHUM AS A DIRECTOR

VANCOUVER, Dec. 3 /CNW/ -- 
VANCOUVER, Dec. 3 /CNW/ - IND DairyTech Ltd. ("IND" or the "Company")
 (TSXV 'IND') today announced financial results for the quarter ended
 September 30, 2010. The unaudited interim financial statements along
 with management's discussion and analysis have been filed with SEDAR.


Revenues for the quarter were $13.9 million compared to $4.8 million in
 the third quarter of 2009. The increase in sales revenues was mainly
 due to 5,493 cows sold in the quarter. Net income for the quarter was
 $7.1 million or $0.06 per share as compared to a loss of $0.3 million
 in the third quarter of last year. A special investment gain of $7.4
 million was reported in the quarter from change of the Company's
 interests in its subsidiary IND China, the details of which are set out
 in the financial statements filed on SEDAR. The current quarter's
 revenues include $2.2 million from raw milk sales, and $11.7 million
 from sales of cows. The sales of milk increased from $1.6 million from
 the third quarter of 2009, or a 36% growth, reflecting the increasing
 milking herd and increased milk price. For the first 9 months of 2010,
 the total revenues for milk sales were $5.7 million and $16.6 million
 for sales of cows, and the net income for the 9 months in 2010 was $6.7
 million, compared to a loss of $3.3 million in the 9 months ended
 September 30, 2009. For the nine months in 2010, the gross margin of
 raw milk was a negative of 25%, due to the impact of a foot and mouth
 disease resulting into low milk production per cow in some farms
 affected. The margin for sales of cows was 23% for the 9 months. The
 Company expects the farms will recover from the disease, and milk
 production per cow will improve, and the sales from raw will continue
 to grow with an improving margin.


For the nine months in 2010, the Company raised approximately $23.5
 million from the market, paid off $11 million debt, used $12 million in
 operating activities, and used $8.6 million in purchase of properties
 and cows.


At September 30, 2010, IND had a herd size of 14,540 (December 31, 2009:
 12,858). The herd size was not increasing as fast as forecasted before
 due to sale of 5,493 cows during the period and an additional
 disposition of 3,224 cows during the nine month period ended September
 30, 2010. Management remains dedicated to its strict quality control
 standards and cow herd monitoring. The Company reported $2.4 million
 loss from the disposal of cows in the nine months of 2010.


"The impact of foot and mouth disease continued into the third quarter
 of 2010 and the Company is still facing the challenges as milk
 productions in some farms are still affected and cows disposed," said
 Jesse Zhu, IND's CEO and Chairman. "However we have seen the impact of
 the disease stabilize and will recover late into the quarter.
 Management has been making efforts to control and reduce the loss. In
 the coming quarters, after the effects of the disease have been
 eliminated, we expect to see a positive operating income. The Company's
 management has been actively raising money for the Company from the
 Chinese domestic market and a net income reported in the quarter
 reflects the management's successful efforts in creating value for the
 shareholders." 


The Company also announces that Ms. Kit Shum has been appointed as a
 director of the Company. Ms. Shum is a recognized Canadian expert in
 cow raising who is a consultant for the Canadian government in helping
 many countries in the world in raising cows. Ms. Shum will chair the
 audit committee of the Company.


About IND Dairytech Ltd.


IND, through its operating subsidiaries, is an emerging raw milk and
 Holsteins producer in China that is seeking to become a leading
 provider of high quality raw milk and Holsteins to the Chinese dairy
 industry.  To meet China's increasing demand for dairy products, the
 Company is using Canadian cattle genetics and North American farming
 practices to establish and develop its dairy herd in China. 


The Company plans to develop its herd in China through the use of
 advanced breeding techniques employing Canadian Holstein embryos that
 it intends to use to impregnate surrogate cows.  These embryos have
 been created through in vitro fertilization using sexed semen to
 achieve an approximate 90% female birth rate. The use of these advanced
 breeding techniques is expected to allow the Company to rapidly expand
 its herd.  The use of Canadian Holstein embryos also provides a
 practical solution to China's ban on the import of live Canadian
 cattle.


The TSX Venture Exchange has not reviewed and does not accept
 responsibility for the adequacy or accuracy of this release.


FORWARD LOOKING INFORMATION


Certain information set out in this News Release constitutes
 forward-looking information, which may include information relating to
 estimates of sales and revenue of IND. Forward-looking statements
 (often, but not always, identified by the use of words such as
 "expect", "may", "could", "anticipate" or "will" and similar
 expressions) may describe expectations, opinions or guidance that are
 not statements of fact and which may be based upon information provided
 by third parties. Forward-looking statements are based upon the
 opinions, expectations and estimates of management of the Company as at
 the date the statements are made and are subject to a variety of known
 and unknown risks and uncertainties and other factors that could cause
 actual events or outcomes to differ materially from those anticipated
 or implied by such forward-looking statements. In light of the risks
 and uncertainties associated with forward-looking statements, readers
 are cautioned not to place undue reliance upon forward-looking
 information. Although the Company believes that the expectations
 reflected in the forward-looking statements set out in this press
 release or incorporated herein by reference are reasonable, it can give
 no assurance that such expectations will prove to have been correct.
 The forward-looking statements of the Company contained in this press
 release, or incorporated herein by reference, are expressly qualified,
 in their entirety, by this cautionary statement.




p/p table border="0" valign="top"tr valign="top"td align="left"Jesse Zhubr/ Chief Executive Officerbr/ IND DairyTech Limitedbr/ 604-522-1619br/ a href="mailto:[e-mail]"[e-mail]/a/td td align="left" /td td align="left" /td td align="left" /td td align="left" /td td align="left" /td td align="left" /td td align="left" /td td align="left" /td td align="left" /td td align="left" /td td align="left"Selen Zhoubr/ Corporate Secretarybr/ IND DairyTech Limitedbr/ 416-522-1619br/ a href="mailto:[e-mail]"[e-mail]/a/td/tr/table

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