/C O R R E C T I O N -- China Green Agriculture, Inc./

PR Newswire

posted: 30 DAYS 1 HOUR AGO

In the news release, "China Green Agriculture, Inc. Breaks Ground on New R&D Facility," issued on October 29, 2009, 07:00 ET by China Green Agriculture, Inc. (NYSE Amex: CGA) over PRNewswire Asia, we are advised by the company that Mr. Tao Li's quote should end, "We are confident that we will achieve all key milestones in a timely fashion and anticipate that the new R&D facility will be completed by the second quarter of calendar year 2011," and not "We are confident that we will achieve all key milestones in a timely fashion and anticipate that the new R&D facility will be completed by the second quarter of fiscal year 2011," as originally stated inadvertently. Complete, corrected text follows:

       China Green Agriculture, Inc. Breaks Ground on New R&D Facility

    Company Receives Land-Use Right for R&D Expansion in Shaanxi Province

XI'AN, China, Oct. 29 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE Amex: CGA; "China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced that it has broken ground on its new R&D facility and has received a certificate of Land-Use Right for approximately 88 acres of land granted by the People's Government and Land & Resources Bureau of Hu County. This certificate was issued by the PRC government on August 13, 2009 and delivered to the Company on September 2, 2009. The land use certificate is valid for 50 years, ending August 13, 2059.

"We are pleased to have achieved this milestone within such a brief period of time since the closing of our public offering on July 24, 2009," stated Mr. Tao Li, Chairman and CEO of China Green Agriculture. "As previously announced, we intend to use a majority of the net proceeds from our recent financing for our R&D expansion. We are confident that we will achieve all key milestones in a timely fashion and anticipate that the new R&D facility will be completed by the second quarter of calendar year 2011.

China Green Agriculture currently operates a 137,000 square meter R&D facility (with six intelligent greenhouses over 39 acres), which can simulate diverse natural environments and allows the platform to experiment and test new product ideas. With majority of our field testing activities taking place within the company's advanced greenhouse facilities, the company is able to effectively manage production and quality control aspects. Expansion of China Green Agriculture's R&D facility is key to the company's market strategy of rapid product development and increasing market share for its products.

In addition to the development of new products, R&D is directly involved in generating profits, which helps to normalize earnings and reduce seasonality. Many flowers and vegetables produced during the experimentation and testing process are sold to high-end supermarkets and airline companies, turning its R&D activities into a profit center. During the last four quarters, agricultural products contributed 17.9% and 13.6% in the total sales and gross profit, respectively.

In order to further strengthen its R&D base to support the rapid capacity expansion, China Green Agriculture recently announced plans to build 12 new greenhouses over an area of about 88 acres. This is expected to increase the company's ability to develop new products and could be used to support its efforts from the existing fertilizer business into cross-selling opportunities such as pesticides and herbicides.

About China Green Agriculture, Inc.

China Green Agriculture, Inc. produces and distributes humic acid ("HA") based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., ("Jinong"). Jinong produces and sells over 130 different kinds of fertilizer products per year. All of Jinong's fertilizer products are certified by the PRC government as green food production materials, as stated by the China Green Food Research Center. Jinong'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). Jinong also has the capacity to produce highly concentrated powdered fertilizers. China Green Agriculture currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 21 provinces, 4 autonomous regions and 3 municipal cities in the PRC. The leading five provinces which collectively accounted for 36.4% of the Company's fertilizer revenue for the year ended June 30, 2009 are Shandong (9.5%), Shaanxi (8.3%), Heilongjiang (6.5%), Xinjiang (6.5%) and Anhui (5.9%). For more information, visit http://www.cgagri.com .

Safe Harbor 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, the impact of competitive products or pricing, changes in technology, additional financing requirements, development of new products, government approval processes, technological changes, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Safe Harbor 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.

    For more information, please contact:

    In the US:
    China Green Agriculture, Inc.
     Ms. Ying Yang, Chief Financial Officer
     Tel:   +1-626-623-2575
     Email: yangying@cgagri.com

    OR

    HC International, Inc.
     Ted Haberfield, Executive VP
     Tel:   +1-760-755-2716
     Email: thaberfield@hcinternational.net

    In China:

    China Green Agriculture, Inc.
     Mr. Jonnie Wang, Secretary of Board, Investor Relations Officer
     Tel:   +86-29-8826-6368
     Email: wangxilong@cgagri.com

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China Green Agriculture, Inc. Breaks Ground on New R&D Facility

Company Receives Land-Use Right for R&D Expansion in Shaanxi Province

About China Green Agriculture, Inc.

Safe Harbor Statement

    For more information, please contact:

    In the US:
    China Green Agriculture, Inc.
     Ms. Ying Yang, Chief Financial Officer
     Tel:   +1-626-623-2575
     Email: yangying@cgagri.com

    OR

    HC International, Inc.
     Ted Haberfield, Executive VP
     Tel:   +1-760-755-2716
     Email: thaberfield@hcinternational.net

    In China:

    China Green Agriculture, Inc.
     Mr. Jonnie Wang, Secretary of Board, Investor Relations Officer
     Tel:   +86-29-8826-6368
     Email: wangxilong@cgagri.com

SOURCE China Green Agriculture, Inc.