Sydney, Oct 15, 2007 (ABN Newswire) - The Directors of Montec International Limited (ASX: MTI) are pleased to announce the first commercial production of the "dairypure" branded range of yoghurt drinks specially formulated for children. The range of three fruit flavoured and one fibre enriched product is being produced under a previously announced agreement with the Jinhua Jalo Dairy Company Limited and together with Montec's monounsaturated milk are being distributed in Jinhua and other selected cities in Zhejiang Province.

The inaugural production run was 16 tonnes and will provide for distribution through approximately 300 retail outlets, initially in Jinhua. A further 30 tonne follow up production run is scheduled for later in October. The yoghurt drink is packaged in 180ml plastic bottles and retailed in plastic wrap four packs.

The market launch was formally announced at a function held in Jinhua on Wednesday 10th October and attended by the Deputy Mayor of Jinhua Ms Lao, the Australian Deputy Consul-General Mr Chris Wright and the Chairman of Jinhua Jalo Dairy, Mr Xia.

In launching the new products Mr Peter Herd, Montec Managing Director said, " The introduction of a drinking yoghurt range specially formulated for children represents a logical extension of Montec's healthy dairy concept in offering good tasting healthy dairy products that provide the health and nutritional benefits increasingly demanded by today's consumer. This range of yoghurt drinks is based on fermented milk with added nutrients including dietary fibre important to the growth and development of young children." He added, "Montec's strategy has always been to leverage the "dairypure" brand beyond plain and flavoured milk. In due course we expect to launch other premium products including ice cream."

ABOUT JINHUA – ZHEJIANG PROVINCE, CHINA

Jinhua is located in the middle of Zhejiang Province, southern wing of the Yangtze River Delta Economic Zone. It covers an area of 10,900 sq km with a population of 4.52 million people.

Near the city there are two ports at Shanghai and Ningbo, and serviced by two international airports at Shanghai and Hangzhou. The economy in Jinhua is well developed. Jinhua has been known as the “Town of the Milk Cow in South China”. Today, an industrial centre for food processing, daily consumables, pharmacy, hardware products, motor vehicles and accessories and building materials is in place. Many local products have acquired significant market share both at home and abroad.