BRIEF-Yuanda China updates on litigation in Russia

March 28 (Reuters) - Yuanda China Holdings Ltd

* Update On Litigation

* Refers to shareholders of company and potential investors

on development of legal proceedings of group in Russia

* Group was informed that Yuanda Russia filed a further

appeal application against Rasen Story

* Appeal application against rasen story in relation to

ruling made by relevant tribunal dismissing second appeal

* "Advised that counterclaim was unreasonably made and that

chance of Yuanda Russia in succeeding in third appeal is

probable."

* Third appeal is still at preliminary stage and is still in

progress

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