NOTE 5 – LAND USE RIGHTS

There is no private ownership of land in China. Land is owned by the government and the government grants land use rights for specified terms. The Company’s land use rights have terms of 45 and 50 years and expire on January 1, 2053 and October 30, 2053. The Company amortizes the land use rights over the term of the respective land use right. For the six months ended June 30, 2011 and 2010, amortization of land use rights amounted to $45,138 and $43,245, respectively. At June 30, 2011 and December 31, 2010, land use rights consist of the following:

	Useful Life		June 30, 2011			December 31, 2010
Land use rights		45- 50 years	$	4,177,103		$	4,083,728
Less: accumulated amortization				(369,533	)		(316,569	)
			$	3,807,570		$	3,767,159

Amortization of land use rights attributable to future periods is as follows:

Twelve-month periods ending June 30:
2012	$	91,451
2013		91,451
2014		91,451
2015		91,451
2016		91,451
Thereafter		3,350,315
	$	3,807,570