American Lorain Corporation announced that it has won a bid to enter into a two-year contract with Yum! Restaurants Consulting (Shanghai) Co. Ltd., to distribute a variety of food products for Yum! China Division´s subsidiaries Kentucky Fried Chicken (KFC) and Pizza Hut in China. The potential distribution contract will enhance the existing relationship between American Lorain and Yum! China Division. The potential contract, which is intended to cover the period from September 2008 to August 2010, is expected to generate well over $20 million in revenues for American Lorain. The potential two-year distribution contract, which represents 12.1% of Yum! China Divisions´ total imported sales of frozen food products to China, will allow American Lorain to distribute food products on behalf of KFC and Pizza Hut. The Company will distribute products such as cheese, corn cobs, waffle crispers, onion rings, string cheese and potato sticks to regions such as Zhengzhou in Henan Province, Qingdao in Shandong Province and Beijing.

American Lorain Corporation announced that it has leased a food production facility in Dongguan, Guangdong Province, PRC. American Lorain leased 60,000 square feet of facilities, consisting of two buildings on June 10, 2008. The lease term on the facilities is for ten years. One of the buildings will be used for office space and the other one will be used for food production. The food production facility measures approximately 38,750 square feet and will be equipped with a refrigeration storage unit with a 1,000-ton capacity. The Company plans to equip the production facility with cash on hand. The Company plans to produce packaged foods and convenience foods products such as pickled vegetables, prepared meat, and noodles at the new production facility.

American Lorain Corporation reported earnings results for the first quarter ended March 31, 2008. For the quarter, the company reported net revenues totaled $17.4 million, up 46.5% from $11.9 million in the three month period ended March 31, 2007. Chestnut products accounted for 63% of total sales in the first quarter, canned food accounted for 36% of total sales in the first quarter and convenience food accounted for 1% of total sales in the first quarter. The increase was mainly attributed to the success of the Company´s marketing strategies, operational enhancements, and expansion of sales markets, both domestically and internationally. Sales to France and Belgium increased 100% compared with the same period last year. Net income to common shareholders was $1.7 million, or $0.07 per fully diluted share, an increase of 13.3%, compared to net income of $1.5 million, or $0.09 per fully diluted share, for the first quarter of 2007.