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Full Year 2010 Highlights

• Sales increased 14.9 percent to $849.5 million
• Gross profit increased 25.6 percent to $105.9 million
• Net income was $99.2 million or EPS $.64, compared to $79.1 or EPS $.51 for the same period last year
• Operating cash flow increased 29 percent to $51.1 million

Full Year 2010 Results

Revenues

We generate sales from our farm and side line products. Net sales for the year ended December 31, 2010 increased $109.9 million or 14.9% to $849.5 million as compared to $739.6 million for the year ended December 31, 2009. The increase in net sales was attributable to higher yields and a better mix in products sales coupled with better pricing on agriculture products, particularly potato, cotton and fruits. We also benefitted from expanded distribution channels. These comparisons show that our sales in 2010 have enjoyed significant growth. The overall increases in revenue are primarily a result of price increases attributable to the greater market demands and the prosperous economy in China.

Cost of Goods Sold

Our cost of goods sold consists primarily of the costs of our raw materials, labor, and overhead. Cost of sales for the year ended December 31, 2010 increased by a marginal $88.2 million, or 13.5%, to $743.6 million from $655.4 million for the year ended December 31, 2009. Due to the management's continued heightened focus on cost control exercised throughout production and the surge in the product prices, the cost grew slower than the sales, although our production was adversely affected by heavy snow storms from January through May in northwest China, which disrupted our planting and consequently increased production costs.

Gross Profit and Gross Margin

Our gross profit for the year ended December 31, 2010 increased $21.6 million or 25.6% to $105.9 million from $84.3 million for the year ended December 31, 2009. The improved margins were a result of better production yields and higher product pricing.

Sales and Marketing Expenses

Our sales and marketing expenses for the year ended December 31, 2010 remained level at $0.2 million more as compared to the prior year ended December 31, 2009 due principally to management's continued heightened focus on controlling costs.

General and Administrative Expenses

Our general and administrative expenses for the year ended December 31, 2010 remained level at $0.5 million more as compared to the prior year ended December 31, 2009, due principally to management's continued heightened focus on controlling costs.

Net Income

Our net income for the year ended December 31, 2010, increased to $99.2 million or $.64 per share compared to $79.1 million or $.51 per share for the same period last year.

Developments

In 2010, Yasheng Group established Yasheng America Trade Company as its wholly owned subsidiary, with the intention to improve the Company's efficiency and strengthen its internal controls. The Company's international sales will flow through the subsidiary.

In 2010, Yasheng Group established Yasheng Commodity Trading, LLC as its wholly owned subsidiary, which will help to trade futures and agricultural commodities.

In 2010, Yasheng Group listed on the OTCQB as a U.S. registrant and is dually listed on the Deutsche Börse Exchange, both of which will facilitate the Company's access to global capital markets.

Yasheng Reiterates Fiscal 2011 EPS Outlook of $.72-$.74

For fiscal year 2011, the Company reiterates its expectation of annual revenues of approximately $976 million and annual earnings per share range of $.72-$.74, representing an average annual growth rate of approximately 15%.

Chairman Zhou Chang Sheng summarized, "Chiefly, our 2010 revenue results completed in line with our previous expectations. Based on current positive economics and our successful management and operations, we anticipate continued growth and a strong 2011."

Yasheng Group

(OTCQB: [ YHGG ]) (FRANKFURT: YSF) ([ www.yashenggroup.com ]), founded over 30 years ago, is a US holding company that conducts primarily agricultural operations in the Northwest of China. Today it is one of China's leading producers and marketers with six major product segments including field crops, vegetables, fruit, specialty crops, hops, hemp, seeds, beef and poultry. Yasheng is a supplier of high-quality agricultural products to world-famous conglomerates such as McDonald's, KFC, Tsingtao Beer, and Pepsi. The company is led by a highly qualified management team and it has total assets of approximately $1.7 billion, over 15,000 employees, and a history of strong sales and earnings growth.

Safe Harbor Statement

Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the company's various filings with the Securities and Exchange Commission. The company assumes no obligation to update these forward-looking statements.