Thursday, June 2, 2011

SkyPeople's reaction to hit piece

Sky People Fruit Juice Makes Shareholder Announcement

XI'AN, China, June 2, 2011 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) (together with is direct and indirect subsidiaries, "SkyPeople" or the "Company"), a processor and manufacturer of kiwifruit, apple, pear and other concentrated specialty fruit juices and manufacturer of Hedetang-branded fruit beverages in the People's Republic of China ("PRC" or "China"), today released the following statements:
SkyPeople has learned that, on June 1, 2011, an entity identified itself as "Absaroka Capital Management" (the "Author") and a short seller of the Company's securities, published an article on an investor website making various allegations and accusations against the Company (the "Article"). The Company believes that the Article contains many materially false and inaccurate claims, including without limitation, claims relating to the Company's operations, retail and sales channels, production, financials, and industry performance.
In particular, it appears that the author based much of its assumptions, analysis and conclusions in the Article on information and reports allegedly to have been filed by the Company with the PRC State Administration of Industry and Commerce ("SAIC"). However, upon review of the reports contained in the Article that the Author alleges to have been filed by the Company with SAIC, it appears that such so-called SAIC reports are entirely fabricated reports which contain materially false information about the Company's financial conditions and results of operations. The "auditor" of the so-called SAIC reports contained in the Article as shown on its company stamp did not appear to be the same auditor that actually audited the financial statements of the Company's PRC subsidiaries.
The Company believes that it is important to alert its shareholders and the general public that material false information contained in the Article which has been widely disseminated has caused material and irreparable harm to Sky People Fruit Juice, Inc. and its investors.
The Company is currently weighing appropriate legal remedies against the Author and the individuals that the Company believes to be behind this malicious attack.

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