Tianli and An Puluo Foods began selling branded packaged pork through An Puluo's retail distribution channels in April 2011. After 14 months of collaboration, Tianli has decided to diversify its retail distribution to more partners in order to reach a broader customer base to larger cities for its branded pork products. As a result, Tianli terminated its exclusive marketing program with An Puluo Foods to provide the Company additional retail and meat processing options and partnerships. In the near term, Tianli will remain a customer of AnPuluo Foods to service their combined customer base of Tianli-AnPuluo branded pork meats while the Company engages other, non-exclusive, sales agreements.

Tianli is committed to its retail expansion. A central part of its retail growth strategy centers around its Enshi Black Hog program started in the third quarter of 2011. Tianli's five-year exclusive agreement with government agencies in Enshi Autonomous Prefecture allows the Company to raise, process, and sell Black Hog products, which command premium prices and margins. Tianli is building its own brand in preparation for the launch of its Black Hog meat program in the third quarter of this year.

"We thank An Puluo for their hard work," started Hanying Li, Chairwoman and CEO of Tianli. "Both companies learned a great deal over the past year from our collaboration. Ultimately, we decided that it is in Tianli's best interest to expand the number of retail distribution partners in order to quickly scale this business and prepare for our Enshi Black Hog program. We are working quickly to execute this new strategy in order to service Chinese consumers' demand for higher quality pork meat."