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Yongye International Provides Update on Income Tax Rate

January 6, 2010

BEIJING, Jan. 6, /PRNewswire-Asia-FirstCall/ — Yongye International, Inc.
(Nasdaq: YONG), (“Yongye or “the Company”) a leading manufacturer, developer
and distributor of Shengmingsu brand plant and animal nutrient products in the
People’s Republic of China
(PRC), today announced that the Company received
government approval to Yongye’s sole operating entity in the PRC, Yongye
Nongfeng, for a preferential corporate income tax rate of 15% for the full
years of 2009 and 2010.

Yongye Nongfeng accrued its income tax expenses for the first three
quarters of 2009 based on the statutory income tax rate of 25%. Recently,
Yongye Nongfeng received the approval from the local tax authority of Hohhot,
Inner Mongolia Autonomous Region, that Yongye Nongfeng qualifies for a
preferential 15% corporate income tax rate. As a result, Yongye will pay its
income tax expenses for the full 2009 tax year based on the preferential 15%
corporate income tax rate. The impact to first nine month earnings in 2009
prepared in accordance with U.S. GAAP is estimated to be a reduction of income
tax expenses of approximately $3.1 million or an increase of $0.10 per diluted
share. Corresponding accounting adjustment will be made in Yongye’s 2009
annual financial reports.”

“When added to the VAT exemption which we received in 2008, this
preferential income tax rate provides us with additional financial strength to
execute our strategic plan,” said Mr. Zishen Wu, Yongye’s Chairman and CEO.

About Yongye International, Inc.

Yongye International, Inc., headquartered in Beijing, is engaged in the
manufacturing, development, distribution and sales of Shengmingsu brand plant
and animal nutrient products. The Company’s patented and patent pending
formulas and proprietary extraction processes allow it to create products that
increase crop yields and improve the health of livestock. Its sole operating
subsidiary, Inner Mongolia Yongye Nongfeng Biotechnology Co., Ltd., is
headquartered in Beijing with major operations located in Inner Mongolia,
People’s Republic of China. For more information, please visit the Company’s
website at http://www.yongyeintl.com .

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.

    For more information, please contact:

    Yongye International, Inc.
     Mr. Larry Gilmore
     VP of Corporate Strategy
     Phone: +86-10-8232-8866 x8880
     Email: larry.gilmore@yongyeintl.com

    CCG Investor Relations, Inc.

     Mr. Shaun Smolarz, Financial Writer
     Phone: +1-646-701-7444
     Email: shaun.smolarz@ccgir.com

     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

SOURCE Yongye International, Inc.


Source: newswire



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