China Food and Beverage Company (OTC Bulletin Board: CHIF) announced today that Anhui Liu An Beer Company, Ltd., ("the sellers"), from whom the Company purchased its majority interest in its Chinese brewery in December 1998 for 4.2 unregistered shares of common stock, claimed that the Company was in default of its obligations to repurchase or cause to be repurchased from the sellers, a significant majority of the shares of the aforementioned common stock or, to provide additional capital to the brewery. As a result of the alleged default, the sellers refused to provide the Company with any financial information concerning the operations of the brewery during the first quarter of 2000 and assumed control of the brewery. It is possible that, in addition to taking control of the assets, the sellers may commence an action against the Company alleging, among other claims, breach of contract. Conversely, the Company is exploring its options, including but not limited to, initiating legal action of its own to recover what it believes to be a wrongful conversion of its assets by the sellers.

In other news, information regarding the brewery disputes and the Company's first quarter financial statement can be found on the Company's most recently filed 10Q and 8K. The Company's 1999 financial statements can be found on the Company's most recently filed 10K. These aforementioned documents can be viewed at

James Tilton, president of CHIF stated, "The Company believes that the claims made by the sellers are without merit. However, as the assets of the brewery are in the Peoples' Republic of China and the Company has no effective control over the business or the financial concerns of the brewery, the Company has fully reserved against all of its assets located in China."

China Food and Beverage Co. is a U.S. holding company whose strategy is the acquisition of regional Chinese breweries that compliment its existing business, distribution and product lines.

For further information, contact Investor Relations at 800-324-3464 or visit the website

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, the ability of China Food and Beverage Co. to accomplish its stated plan of business. Although China Food and Beverage Co. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by China Food and Beverage Co. or any other person that the objectives and plans of China Food and Beverage Co. will be achieved.