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Cost of sales for the fourth quarter of 2007 was $4.5
million, compared to $4.4 million for the fourth
quarter of 2006. Cost of sales for the twelve months
ended December 31, 2007 was $16.5 million, compared to
$18.1 million for the same period in 2006. This
decrease was primarily due to the corresponding
decrease in sales revenue. Cost of sales decreased at
a lesser rate than revenue because the cost of raw
materials increased during 2007 while the Company's
product prices remained unchanged.

Gross profit for the fourth quarter of 2007 was $8.8
million compared to $12.2 million for the fourth
quarter of 2006. The gross profit margin for the
fourth quarter of 2007 was 65.9%, compared to 73.7%
for the same period in 2006. Gross profit for the
twelve months ended December 31, 2007 was $38.4
million, compared to $48.7 million for the same period
in 2006. The gross profit margin for the twelve months
ended December 31, 2007 was 69.9%, compared to 72.9%
for the same period in 2006. These decreases reflect
the reductions in revenue for the fourth quarter and
twelve months of 2007 and gross profit margins being
lower for semi-finished products than for the finished
products that the Company was selling in 2006.

Selling, general and administrative expenses were $4.0
million for the fourth quarter of 2007, compared to
$4.1 million for the fourth quarter of 2006. The
selling and administrative expense as a percentage of
sales was 29.7% for the fourth quarter of 2007
compared to 25.0% for the fourth quarter of 2006.
Selling, general and administrative expenses were
$14.3 million for the twelve months ended December 31,
2007, compared to $12.8 million for the comparable
period in 2006.

The selling and administrative expense as a percentage
of sales was 26.1% for the twelve months ended
December 31, 2007 compared to 19.1% for the same
period in 2006, reflecting an increase in salaries and
benefits, consulting expenses, insurance costs and
depreciation expenses, and the aforementioned decrease
in sales.

As of December 31, 2007, Tiens had $114 million of
retained earnings and total shareholders' equity of
$146 million.

Jinyuan Li, Chairman, President and CEO of Tiens,
said, "2007 was a year in which Tiens faced challenges
from the direct selling environment in China and in
exporting its products internationally. To date no
problems have been found with our high quality
products under the national campaign in China to
prevent the export of unsafe food and substandard
products. We continued to lay the groundwork for both
domestic and international sales growth by acquiring
Life Resources, which will provide new research and
development facilities and enhance our manufacturing
capabilities."