Toronto, Ontario, December 8 , 2009 – Asia Bio-Chem Group Corp. (TSXV: ABC) (“Asia Bio-Chem” or the “Company”) is pleased to announce that it has successfully completed negotiations and has drawn down a second operating line of credit with China Construction Bank in the amount of RMB 145 million ($22.5 million). The interest rate on this loan is 110% of the Peoples Central Bank Rate (currently the 6-12 month Bank Rate is 5.31%) and the loan is secured against certain assets of the Company.

In addition, the Company is pleased to announce that it has received the remaining RMB 4 million ($620,000) of the one-time subsidy from the municipal government of Tieling, Liaoning Province where our Changtu plant is located. When combined with the initial payment received in the second quarter of this year, the total subsidy amounts to RMB 5 million ($775,000). As discussed in our second quarter MD&A, this one-time subsidy was provided to the Company as compensation for the effect on corn prices resulting from the government’s corn purchasing program undertaken in late 2008 and early 2009.

Statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward looking statements, except as required by law, in the event that management’s beliefs,  estimates or opinions, or other factors, should change.

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