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Yongye International Announces Branded Store Network Increases Over 40% to 5,000 Stores

Posted on: Monday, 3 August 2009, 07:00 CDT

BEIJING, Aug. 3 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (OTC Bulletin Board: YGII; "Yongye" or the "Company"), a leading developer and distributor of Shengmingsu branded plant and animal nutrient products located in the People's Republic of China, today announced that the number of independently owned, branded stores selling Yongye's Shengmingsu branded products increased to approximately 5,000 as of June 30, 2009, up from 3,500 as of the period ended March 31, 2009.

Yongye's network of branded stores are integral to the unique marketing strategy that has allowed the company, working with its distribution partners, to rapidly penetrate the rural market and promote strong brand recognition for Yongye and the benefits to farmers of using Shengmingsu to enhance crop yields and improve their incomes.

The Company's distributors work with each store owner to feature Yongye products in a prominent fashion, display brochures and advertisements for Company products, and transform the store front to prominently feature Yongye's brand name so it is highly visible from the street. Yongye branded stores are supported by intensive banner advertising and product support at the village level that drive awareness among farmers of Yongye's products and drive increased traffic to the independently-owned stores.

The Company attributes much of the increased demand for its Shengmingsu branded products to its successful marketing strategies, tightly integrated advertising campaigns and effective branding efforts across its channels. Yongye promotes its products nationally and regionally through activities such as national commercials on CCTV-7, China's national agriculture television channel, and local agriculture television channels and newspapers.

"The rapid growth in our branded store network in 2009 reflects the success of our channel partner training and development programs and our coordinated efforts with our distributors to flood targeted market areas with world-class advertising. This process is creating a 'push-pull' effect which drives penetration into the farming communities while also pulling product through the channel," said Mr. Zishen Wu, CEO of Yongye International, Inc. "Our goal is to get the product into the hands of more and more farmers so they can benefit from the use of Shengmingsu and we are accomplishing this. We are confident that the sales of our product will increase as the farmers have the opportunity to directly experience the dramatic impact on crop yields and quality they can achieve from applying our product."

Each distributor sources successful, independently owned stores within their assigned territories that have typically been in existence for many years and sell a variety of agricultural input products. Yongye does not execute any direct agreements with the store owners and the distributors are responsible for bearing the expense of village-level branding, training and advertising following Yongye's guidelines.

About Yongye International, Inc.

Yongye International, Inc., headquartered in Beijing, is engaged in the distribution and sales of fulvic acid based nutrients for plants and animals. The Company's patent pending processes and proprietary formulas allow it to create products that increase crop yields and improve the health of livestock. Its sole operating subsidiary, Yongye Nongfeng Biotechnology Company, Ltd., is located in Inner Mongolia, People's Republic of China. The Company sells its products through distributors in ten provinces throughout China.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

SOURCE Yongye International, Inc.

Source: PR Newswire

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