SOURCE: AgFeed Industries, Inc.

November 16, 2007 07:00 ET

AgFeed Industries Signs $1.2 Million in Product Supply Contracts, Establishes Fourth Manufacturing Plant in China Serving China's Second Largest Feed Market -- Shandong Province

AgFeed Announces Expansion Into China's Northern Regions

SHANGHAI, CHINA--(Marketwire - November 16, 2007) - AgFeed Industries, Inc. (NASDAQ: FEED) (website: www.AgFeedinc.com), a market leader in China's premix animal nutrition industry, today announces that the Company signed $1.2 million in premix product supply agreements with several regional distributors in China's Shandong province. The Company also announces expansion into China's northern regions through the opening of its fourth plant in China located in the Shandong province by leasing an established manufacturing facility.

Junhong Xiong, AgFeed's CEO, commented: "Shandong province represents China's 2nd largest feed markets. Market expansion into China's vast northern regions is part of our growth strategy for 2008: open new plants in key markets throughout China and further deepen market penetration through our wholesale and retail distribution models. AgFeed also plans to position our hog farms within the reach of our feed manufacturing facilities."

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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