SOURCE: China Agri-Business

October 22, 2007 12:45 ET

China Agri-Business, Inc. Announces Second Quarter Results

Q2 Revenues Increased by 49%, Net Income up 80%, as Compared to Q1

NEW YORK, NY--(Marketwire - October 22, 2007) - China Agri-Business, Inc. (OTCBB: CHBU) today announced financial results for the second quarter ended June 30, 2007.

Highlights:

Consolidated results for the quarter ended June 30, 2007:

--  Second quarter revenues increased 49% as compared to the quarter ended
    March 31, 2007 and 40% compared to the same period of last year.
--  Earnings Per Share increased to $0.03 in Q2 2007 as compared to $0.02
    in Q2 2006.
--  Cash and cash equivalents increased $1,046,560 from December 31, 2006
    to $4,832,095 at June 30, 2007.
    

Liping Deng, President and CEO of the Company, stated, "We are pleased to announce our financial results for the second quarter. The Company has experienced continual growth in revenue and income since inception. We continue to gain market share within China's organic farming community, and expect this growth to continue as we build our sales and distribution network."

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



                        Six Months    Six Months
                          Ended         Ended            Year Ended
                         June 30,      June 30,          December 31,
                           2007          2006         2006         2005
                        (Unaudited)  (Unaudited)   (Audited)    (Audited)
Revenue                 $ 1,408,903  $ 1,070,546  $ 2,154,894  $ 1,229,948
Cost of Goods Sold         (456,893)    (333,663)    (655,530)    (266,583)
                        -----------  -----------  -----------  -----------
Gross Profit                952,010      736,883    1,499,364      963,365
Gross Profit %                67.57%       68.83%       69.58%       78.33%
Selling expenses             56,976       33,667       85,703       34,391
General and
 Administration
 Expenses                   310,060      307,211      467,136      420,222
Depreciation and
 Amortization                21,872                    39,955       41,636
                        -----------  -----------  -----------  -----------
Total Operation
 Expenses                   388,908      340,878      592,794      496,249
                        -----------  -----------  -----------  -----------
Income from operation       563,102      396,005      906,570      467,116
Interest Income               6,075        1,295        6,283       10,001
                        -----------  -----------  -----------  -----------
Net income for the
 period                 $   569,177  $   397,300  $   912,853  $   477,117
                        ===========  ===========  ===========  ===========
Earnings per common
 share - basic and
 diluted                $      0.05  $      0.04  $      0.05  $      0.04
                        ===========  ===========  ===========  ===========

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.

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