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China Green Agriculture, Inc. Achieves Construction Milestone on New 40,000 Metric Ton Fertilizer Production Facility

Posted on: Thursday, 18 December 2008, 08:00 CST

XI'AN, China, Dec. 18 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (OTC Bulletin Board: CGAG) ("China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced that it has achieved a major milestone in the construction of the main building for the expansion of its facilities.

China Green Agriculture's factory building will feature 13,803 square meters (148,574 square feet) of floor space spread over three storeys. The Company has completed two storeys of the building and is currently in the process of completing engineering work including equipment installation, which is scheduled to be finished by February 2009. China Green Agriculture expects to implement trial production from March 2009 through July 2009. Upon completion of the expansion project, China Green Agriculture will have the capacity to produce up to 50,000 metric tons of fertilizer per year, up from its current capacity of 10,000 metric tons per year.

All of the new equipment in the facility has been designed specifically for China Green Agriculture using the Company's proprietary technology and built according to standards used for pharmaceutical equipment. While the Company's current facilities feature a high degree of automation, new automatic packaging equipment will be added in the new factory as well, increasing efficiency and further reducing reliance on manual labor. In addition, China Green Agriculture currently only manufactures concentrated liquid fertilizer products, however new equipment will be capable of producing both granular and concentrated liquid fertilizer.

Photos of the construction progress on China Green Agriculture's new facilities can be viewed on the Company's website on the photo tours section of the investor relations page at http://www.cgagri.com/investor/investor6- 4.html.

"We are very pleased that our expansion is proceeding according to schedule. We believe this increase in production capacity will allow us to continue to expand by catering to a strong market demand for green fertilizer products," said Mr. Tao Li, Chairman and CEO of China Green Agriculture, Inc. "In addition, the Chinese government's new agricultural policy allowing farmers to rent out land or form cooperatives will likely benefit our business as it will increase demand from large scale customers," concluded Mr. Li.

About China Green Agriculture, Inc.

China Green Agriculture, Inc. produces and distributes humic acid ("HA") based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., ("TechTeam"). TechTeam produces and sells approximately 10,000 metric tons of over 100 different kinds of fertilizer products per year. All of TechTeam's fertilizer products are certified by the PRC government as green products and suitable for growing Grade AA "green" foods, also known as green products that contain little or no chemical materials, as stated by the China Green Food Research Center. TechTeam's fertilizers are highly concentrated liquids which require an application of approximately 120 ml per mu per application. Its average end user has approximately four mu of land (one mu = .165 acres).

China Green Agriculture currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 27 provinces in the PRC. The leading five provinces by revenue for the fiscal year ended June 30, 2008 include Heilongjiang (9.53%), Shandong (7.55%), Anhui (6.71%), Xinjiang (6.52%), and Henan (6.51%). For more information, visit http://www.cgagri.com .

Cautionary Statement

This press release contains forward-looking statements concerning the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Green Agriculture undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

SOURCE China Green Agriculture, Inc.

Source: PR Newswire

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