Contact Information: Contacts: In China: John Layburn Chief Strategy and Compliance Officer China Tel: 86-10-8438 1031 john.layburn@agriacorp.com In the U.S.: David Pasquale Senior Vice President U.S. Tel: +914-337-1117 david.pasquale@agriacorp.com
CNAAS and Agria Enter Strategic Co-Operation; Agria to Make Investment in Zhongnong
| Source: Agria Corporation
BEIJING--(Marketwire - October 28, 2009) - Agria Corporation (NYSE : GRO ) (the "Company" or
"Agria"), today announced it has entered into a strategic co-operation
framework agreement with the China National Academy of Agricultural
Sciences ("CNAAS") providing for future co-operation across the spectrum of
agricultural research. Agria has also entered into an investment agreement
with CNAAS and its affiliates, under which Agria will invest RMB35 million
into Beijing Zhongnong Seed Industry Co., Ltd ("Zhongnong"), a company
wholly owned by CNAAS and its affiliates. Zhongnong has priority rights to
accept the transfer of all existing and future cultivated seed varieties
owned by CNAAS and its affiliates for the purposes of commercialization.
Established in 1957, CNAAS is the largest agricultural research
organization in China. It comprises 39 research institutes across the
country covering all major areas of the agricultural sector including
advanced research in the development of both horticulture and livestock.
CNAAS employs over 5,000 scientists and research engineers, many of whom
have been awarded national academic accolades. It also encompasses the
Graduate School of the Chinese Academy of Agricultural Sciences, the only
agricultural research institution in China that can confer Ph.D. level
degrees in agricultural sciences. Through its network of research
institutes, CNAAS controls one of the largest seed banks in the world.
Xie Tao, Agria's Chief Executive Officer, commented: "The strategic
co-operation framework agreement and investment in Zhongnong are the
culmination of a long and deep relationship between Agria and CNAAS. Agria
will have valuable access to many of the leading scientists in China in
agricultural development, as well as access to one of the world's largest
seed banks. We believe the combination of the research capabilities
achieved through this transaction combined with the international farming
operational strengths derived from our partnership with PGG Wrightson will
unlock many opportunities for Agria, integral to our business strategy
going forward."
For more information about CNAAS, please visit www.caas.net.cn
About Agria Corporation
Agria Corporation (NYSE : GRO ) is an innovative China-based agri-solutions
provider focusing on research and development, production and distribution
of three different types of upstream agricultural products. Its diversified
portfolio of products comprises corn seeds, sheep breeding and seedlings,
including proprietary products. For more information about Agria
Corporation, please visit www.agriacorp.com.
Safe Harbor Statement:
This announcement contains forward-looking statements. These statements,
including the expected benefits of the investment in Zhongnong and
co-operation with CNAAS, are made under the "safe harbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Agria may also make
written or oral forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its
annual report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical facts,
including statements about Agria's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve inherent
risks and uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any forward-looking
statement. Potential risks and uncertainties include, but are not limited
to, those risks outlined in Agria's filings with the U.S. Securities and
Exchange Commission. All information provided in this press release is as
of the date of this announcement unless otherwise stated, and Agria does
not undertake any obligation to update any forward-looking statement,
except as required under applicable law.