SOURCE: China Agri-Business

November 19, 2007 15:01 ET

China Agri-Business, Inc. Announces Record Third Quarter Results

Q3 2007 Revenues Increased 40%, Net Income up 23%, as Compared to Q3 2006

NEW YORK, NY--(Marketwire - November 19, 2007) - China Agri-Business, Inc. (OTCBB: CHBU) today announced record financial results for the third quarter ended September 30, 2007.

Highlights:

Consolidated results for the quarter and nine months ended September 30, 2007:

--  Third quarter revenues increased 40%, net income up 23% as compared to
    the same period in 2006
--  Earnings Per Share $0.07 for the nine months, as compared to $0.05 for
    nine months 2006.
--  Cash and cash equivalents increased $383,229 to $5,215,324, or $0.41
    per share, during the quarter.
    

Liping Deng, President and CEO of the Company, stated, "We are pleased to announce our financial results for the third quarter. While the third quarter is usually not as strong as the second quarter due to the ordinary cycle of the agricultural industry, we did continue to increase our presence in the organic applications marketplace. We are particularly focused on establishing a presence in Southern China, where the longer growing season should help reduce the seasonality of our revenues."

Commenting on the remainder of 2007, Mr. Deng said, "We have three new organic applications ready for introduction to the market in the fourth quarter, and we continue to build our sales team. With these tactics underway, we anticipate the Company's growth in revenues and earnings will continue."

China Agri-Business completed its Initial Public Offering on October 17, 2007.


                            CHINA AGRI-BUSINESS, INC.
                             STATEMENT OF OPERATIONS
                              FOR THE PERIODS ENDED

                         Three Months Ended           Nine Months Ended
                           September 30                 September 30
                          2007        2006           2007         2006
                     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)

Revenue:
  Sales of
   products         $   781,103   $   556,656   $ 2,190,006   $ 1,627,202

Operating costs
 and expenses:
  Cost of goods
   sold                 238,254       162,912       695,147       496,575
  Selling and
   marketing             51,341        20,016       108,317        53,683
  General and
   administrative       197,496       142,986       507,556       424,710
  Depreciation and
   amortization
   expenses              12,395             -        34,267        25,487
                    -----------   -----------   -----------   -----------
Total operating
 costs and
 expenses               499,486       325,914     1,345,287     1,000,455

Income from
 operations             281,617       230,742       844,719       626,747

Interest income           4,844         2,581        10,919         3,876

Income before
 income taxes           286,461       233,323       855,638       630,623

Net income          $   286,461   $   233,323   $   855,638   $    30,623

Earnings per
 common share:
  Basic             $      0.02   $      0.02   $      0.07   $      0.05
  Diluted           $      0.02   $      0.02   $      0.07   $      0.05

Weighted average
 number of common
 shares used to
 compute earnings
 per common share:
  Basic              12,278,774    11,738,869    12,278,774    11,738,869
  Diluted            12,578,774    11,874,034    12,578,774    11,874,034


ABOUT CHINA AGRI-BUSINESS, INC.

China Agri-Business, Inc., through its subsidiary, Shaanxi Xin Sheng Centennial Agriculture and Technology Co., Ltd. is an emergent developer, PRC approved manufacturer, and marketer of organic biochemical agricultural application products in China. Categorized into two primary product groups China Agri-Business products include organic fungicides (Xinsheng Luyuan) and bactericides (Xinsheng Lufeng).

Within these categories China Agri-Business produces more than 50 different proprietary applications. Products in these lines function as a botanical growth and vitality stimulant, as a soil conditioner and as a plant nutrient supplement. They prevent and cure plant diseases and eliminate parasites and can be applied to a wide variety of food and non-food crops, including potatoes, vegetables, cotton and fruit plants and trees orchards. They are used either alone or to supplement traditional fertilizer products. The Company owns and manages its own manufacturing facilities and has an established distribution network, serviced by 50 dedicated sales professionals. Products are primarily sold through distributors in 14 provinces throughout China.

Safe Harbor

Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our SB-2 dated July 12, 2007, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, and our other recent filings. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.

Contact Information