Feihe International, Inc. Announces Formation of Special

Feihe International, Inc. Announces Formation of Special Committee
and Retention of Advisors 
BEIJING -- (Marketwire) -- 11/07/12 --  Feihe International, Inc.
(NYSE: ADY) ("Feihe" or the "Company"), one of the leading producers
and distributors of premium infant formula, milk powder, and soybean,
rice and walnut products in China, today announced that its board of
directors has formed a special committee (the "Special Committee"),
comprised of three independent directors of the Company, Mr. Kirk
Downing, Mr. David Dong and Ms. Xiaofei Ren, to consider the
previously announced non-binding proposal (the "Proposal") received
by the Company's board of directors on October 3, 2012 from the
Company's Chairman and Chief Executive Officer, Mr. You-Bin Leng
("Mr. Leng"), and an affiliate of Morgan Stanley Private Equity Asia
("MSPEA"), the private equity arm of Morgan Stanley. The Special
Committee has retained Oppenheimer & Co. Inc. ("Oppenheimer") as its
financial advisor and O'Melveny & Myers LLP ("O'Melveny") as its
international legal counsel to assist it in considering the Proposal. 
As authorized by the Company's board of directors, the Special
Committee, with the assistance of Oppenheimer and O'Melveny, shall
exclusively evaluate and, if appropriate, negotiate the Proposal on
behalf of the Company, which contemplates Mr. Leng, MSPEA and any
other members of their buyer consortium acquiring all of the
outstanding shares of common stock of the Company not currently owned
by Mr. Leng (and possibly other rollover shareholders) in a going
private transaction for $7.40 per share of common stock in cash,
subject to certain conditions (the "Proposed Transaction").
Oppenheimer and O'Melveny will also, if appropriate, assist the
Special Committee in reviewing and evaluating additional proposals
that may be made by Mr. Leng, MSPEA or other parties, if any. 
The Special Committee has not set a definitive timetable for the
completion of its evaluation of the Proposed Transaction or any other
alternative transaction (if any) and does not currently intend to
announce developments unless and until an agreement has been reached.
However, there can be no assurance that any definitive offer will be
made, that any agreement will be executed or that the Proposed
Transaction or any oth
er transaction will be approved or consummated. 
About Feihe International, Inc.  
Feihe International, Inc. (NYSE: ADY) is one of the leading producers
and distributors of premium infant formula, milk powder, and soybean,
rice and walnut products in the People's Republic of China. Feihe
conducts operations in China through its wholly owned subsidiary,
Feihe Dairy, and other subsidiaries. Founded in 1962, Feihe Dairy is
headquartered in Beijing, China, and has processing and distribution
facilities in Kedong, Qiqihaer, Gannan, Longjiang, Shanxi, and
Langfang. Using proprietary processing techniques, Feihe makes
products that are specially formulated for particular ages, dietary
needs and health concerns. Feihe has over 200 company-owned milk
collection stations, six production facilities with an aggregate milk
powder production capacity of approximately 2,020 tons per day and an
extensive distribution network that reaches over 80,000 retail
outlets throughout China. For more information about Feihe
International, Inc., please visit http://ady.feihe.com. 
Cautionary Note Regarding Forward-Looking Statements 
This document contains forward-looking information about the
Company's operating results and business prospects that involve
substantial risks and uncertainties. Statements that are not purely
historical are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended. These
statements include, but are not limited to, statements about the
Company's plans, objectives, expectations, strategies, intentions or
other characterizations of future events or circumstances and are
generally identified by the words "may," "expects," "anticipates,"
"intends," "plans," "believes," "seeks," "estimates," "targets,"
"could," "would," and similar expressions. Because these
forward-looking statements are subject to a number of risks and
uncertainties, the Company's actual results could differ materially
from those expressed or implied by these forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to, those discussed under the heading "Risk
Factors" in the Company's annual report on Form 10-K for the fiscal
year ended December 31, 2011, as amended, and in other reports filed
with the United States Securities and Exchange Commission and
available at www.sec.gov. The Company assumes no obligation to update
any such forward-looking statements. 
CONTACT: 
In the U.S.: renyi@feihe.com 
In China: Renee Ren 
86-10-8457-4688 x8810 
renyi@feihe.com 
 
 
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