July 7, 2010

China Green Agriculture announces closing of acquisition of Beijing Gufeng Chemical Products

China Green Agriculture, Inc., a top producer and distributor of fertiliser in China, has announced the closing on July 2, 2010 of its acquisition of Beijing Gufeng Chemical Products Co., Ltd. and its only wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co., Ltd.

The acquisition, previously announced as subject to the completion of due diligence and the signing of a definitive agreement, will increase the company's annual fertiliser production capacity to 355,000 tonnes from 55,000 tonnes, and expand its product line and distribution network. The acquisition is expected to contribute at least US$10.6 million to the company's net income in FY2011, or about US$0.39 per diluted share.

China Green Agriculture acquired 100% equity interest in Gufeng for approximately US$8.8 million in cash plus an aggregate of 2,275,931 newly issued shares of common stock of the company to Gufeng shareholders or their designees. Of the shares being issued in the acquisition, 40% will be held in escrow pending satisfaction of certain conditions such as make good targets (US$88.4 million in revenue and US$10.6 million in net profit after tax) set for Gufeng for the fiscal year ended June 30, 2011.

"We are very pleased that we have closed the acquisition of Gufeng in a timely manner," commented Tao Li, chairman and CEO of China Green Agriculture. "The acquisition will add 300,000 tonnes of annual production capacity to our company, as well as expand our product line and distribution network. After acquiring Gufeng, we will integrate our proprietary technology with Gufeng's current production lines for producing humic acid based organic and mixed organic-inorganic fertiliser. The company will also integrate Gufeng's sales network to further develop our brand recognition and market share in China."