September 15, 2008


AgFeed completes hog farm acquisitions

AgFeed Industries, Inc. has reported the completion of the four commercial hog farm acquisitions previously announced on August 25, 2008.


It is estimated that these producing hog farms will contribute approximately 50,000 hogs annually to AgFeed. All of AgFeed's acquired hog farms are immediately accretive to its current year earnings.


AgFeed paid on average less than 2 times projected annual net income for these acquisitions.


AgFeed chairman Li Songyan said, "AgFeed currently benefits from declining raw material costs and expanded profit margins in our hog production. In addition, hog market price fluctuations in certain markets have created golden buying opportunities for AgFeed as we are able to acquire quality producing hog farms at lower valuation than before. We are seeing greater value in the marketplace and we have identified multiple additional farm acquisition targets. With a strong balance sheet and plenty of cash flow from operations, AgFeed plans to continue our hog farm acquisition strategies throughout the rest of 2008."

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