Hanfeng Evergreen Inc.

Hanfeng Evergreen Inc.

April 08, 2010 08:30 ET

Hanfeng Slow Release Fertilizer Yields Strong Results in the Phase I Field Trials in Malaysia

TORONTO, ONTARIO--(Marketwire - April 8, 2010) - Hanfeng Evergreen Inc. ("Hanfeng" or the "Company") (TSX:HF), a leading producer of slow and controlled release fertilizers (SCR) in China, announced today that it has successfully completed the first phase of fertilizer field trials jointly conducted with Malaysia's Ministry of Agriculture (MMOA). The trials were carried out on rice crops in Perak State, Malaysia using Hanfeng slow-release fertilizers. The field trials produced exceptional results with crops treated with a variety of Hanfeng's formulated slow and controlled release fertilizers producing higher yields and better quality rice crops with fewer applications. Additionally, the products improved the soil quality by providing micronutrients such as sulfur, which similar to China, is deficient in Malaysian soil. The trials also revealed a decrease in nutrient residue, which is attributable to the slow release characteristics of Hanfeng fertilizers. 

The field trials were conducted from November 2009 to February 2010 on fields of similar size and soil type. The field trials compared the effectiveness of conventional fertilizers (nitrogen, phosphate, potash or collectively NPK) to Hanfeng's formulated slow and controlled release fertilizers. The results were jointly observed and audited by officials from the MMOA and the local agricultural ministry, Hanfeng, and other Malaysian organizations such as the Rice Research Institute. The field trial results showed that Hanfeng's formulated slow-release fertilizers produced a 24.6 percent increase in yield (9.5 tons per hectare versus 7.6 tons per hectare) over crops treated with conventional NPK based fertilizers. Furthermore, Hanfeng products proved significantly more effective, requiring 40 percent fewer applications (three versus five) as well as 51 percent less fertilizer (445 kilograms per hectare versus 912 kilograms per hectare). The exceptional results have prompted the MMOA to expand the demonstration field trial area and have requested that Hanfeng assist in new trials in other states in Malaysia.

While over 65 percent of Malaysia's arable land is dedicated to oil palm, rice represents the major grain crop in the country, utilizing over 1 million hectares, or 15 percent of the arable land. Current rice production is below domestic demand making Malaysia a net importer and prompting the Malaysian government to seek new means to increase production and crop yields including purchasing fertilizers for distribution to farmers in the country. Domestic fertilizer production is predominately focused on conventional products making the government dependent on imported slow and controlled release fertilizers. 

"This is a market that we are familiar with, having previously exported slow and controlled release fertilizers to Malaysia, as well as other countries in Southeast Asia," stated Xinduo Yu, President and CEO of Hanfeng. "We were very pleased to be invited by the MMOA to conduct these field trials and we look forward to expanding the program with them into other states in Malaysia. Our products continue to successfully demonstrate the high efficiency, low carbon characteristics that have made us the industry leader in China. With the successful field trial in Malaysia and our facility currently under construction in Indonesia, we are well on our way to expanding the market for our slow and controlled release products in Indonesia, Malaysia and in other Southeast Asia countries." 

About Hanfeng Evergreen Inc.

Hanfeng is the largest producer of slow and controlled release fertilizers in China. It was the first company to introduce the concept of slow and controlled release fertilizers into China's agriculture market with its establishment of the first commercial scale production in China. All production facilities are located in prime agricultural regions of China. The Company is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange. www.hanfengevergreen.com.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Hanfeng's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars except for noted otherwise.

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