SOURCE: AgFeed Industries, Inc.

November 13, 2007 07:00 ET

AgFeed Industries Announces the Opening of the 380th Independently Owned Retail Store in China, AgFeed Continues to Experience Success in Distribution Model

SHANGHAI, CHINA--(Marketwire - November 13, 2007) - AgFeed Industries, Inc. (NASDAQ: FEED) (website:, a market leader in China's premix animal nutrition industry, today announces that a store in Hunan Province, China, is the 380th independently owned retail store location to exclusively sell AgFeed's products.

Since January 2007, AgFeed has developed a product sales channel of marketing premix feed through independently owned stores across China that exclusively offer AgFeed's products. These stores target small and medium sized hog farms as well as individual hog farmers. AgFeed believes that its retail distribution model not only deepens market penetration but also establishes long term brand loyalty among individual hog farmers.

According to the China Feed Industry Association: Over 530 million hogs are raised in China each year compared to approximately 100 million in the US. Pork represents approximately 65% of all meat consumption in China. Approximately 70% of all hog production in China is contributed by individual hog farmers in a highly fragmented market represented by China's 500 million farmers that rely on animal raising and field output for income. Since hogs in China are raised and sold year-round, it is AgFeed's experience that feed product sales benefit from lack of seasonality.

Songyan Li, PhD, AgFeed's Chairman commented, "AgFeed has been able to build strong brand loyalty and greater customer acceptance in China for our products since we launched our independently owned retail store marketing model in early 2007. AgFeed expects to have relationships with between 450 and 500 independent retail stores by the end of 2007 and has a goal of establishing over 1,000 independently owned retail stores by year end 2008. AgFeed is well positioned through our retail store model to provide us with an effective product distribution channel that adds product cross-selling benefits to all of our current and future products."

About AgFeed Industries, Inc.

AgFeed Industries is a U.S. public company listed on the NASDAQ Global Market. Through its operating subsidiaries in China, AgFeed is a market leader in China's fast growing premix animal nutrition industry. AgFeed has also entered into China's hog raising industry in 2007. China's animal feed market, the industry which AgFeed services, was approximately $40 billion in 2006 according to China Feed Industry Association.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. AgFeed's actual results may differ from our projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect AgFeed's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the pace and timing of the consummation and integration of past and future acquisitions, our ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients and other risks, and the risks described in AgFeed's filings with the Securities and Exchange Commission, including, but not limited to, our Quarterly Report on Form 10-QSB for the quarter ended September 30, 2007 that we filed with the Securities and Exchange on October 31, 2007. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.

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