May 2, 2008

AgFeed completes acquisition of 16 hog farms

Press Release

AgFeed Industries, Inc., a leader in China's premix feed and hog raising industries, has announced the completion of a series of previously announced acquisitions of producing commercial hog farms located in several south China provinces.

With the addition of these newly acquired hog farms, AgFeed now owns controlling interest (on average more than 80 percent) in 22 commercial hog farms in several provinces in China. AgFeed expects these acquisitions to be immediately accretive to 2008 earnings.

AgFeed anticipates total hog sales of approximately 400,000 head in year 2008, with strong hog sales expected in the latter half of the year. On an annualised basis, AgFeed estimates that its hog farms have the capacity to produce approximately 510,000 hogs per year.

AgFeed is currently selling its hogs at approximately US$270 each, and realizes net income on these sales of about US$75 per hog. Hog sales in China have no accounts receivables. Hog farms receive full payment up front from wholesale buyers.

AgFeed benefits from strong synergies between its premix feed and hog production businesses. Additionally, AgFeed has existing feed manufacturing facilities in these regions as well as management staff in place to run the newly acquired farms.

AgFeed expects to report its first quarter financial results for the first quarter of 2008 before May 15, 2008.