SOURCE: Agria Corporation

February 25, 2008 07:00 ET

Agria Expects to Reach High-End of Prior 4Q07 Guidance

BEIJING--(Marketwire - February 25, 2008) - Agria Corporation (NYSE: GRO), an innovative China- based agri-solutions provider, today announced that the Company expects revenues for the fourth quarter of 2007 to reach the high-end of prior guidance.

Prior guidance for revenues for the fourth quarter of 2007 was between approximately RMB 238 million (US$ 31.8 million) and RMB 253 million (US$ 33.8 million), representing year-over-year growth in the range of 60% to 70%, respectively, compared to RMB 149 million in the fourth quarter of 2006. Growth was led by strong corn seed sales, as the fourth quarter is typically the strongest period for this segment due to the annual harvest and sales cycle.

Mr. Kenneth Huang, co-CEO, commented, "We are pleased with the success in our business and continue to expect we will achieve annual revenue growth above 25% in 2008 compared to 2007 based on current order forecasts and market expectations. We expect to achieve this growth despite the impact of snow storms in China in the first quarter of 2008. The storms did not materially affect our operation in Shanxi, did not cause any material increase in breeding sheep deaths and should not impact our seedling business. The impact was confined to transportation and shipment problems across China. Overall, the weather is a short-term, macro issue. The opportunities in front of us for revenue and profit growth remain vast."

Based on sales orders received, Agria now expects revenue in the first quarter 2008 will be approximately 15% above the first quarter of 2007, or approximately RMB 136 million (US$ 17.9 million). The Company believes revenue growth would have been approximately 20% higher than the year ago period without the impact of snow storms in China. The first quarter is normally seasonally below the fourth quarter for the industry.

About Agria Corporation

Agria Corporation (NYSE: GRO) is an innovative China-based agri-solutions provider focusing on research and development, production and distribution of three different types of upstream agricultural products. Its diversified portfolio of products comprises corn seeds, sheep breeding and seedlings, including proprietary products developed through its own research and development capability. The company has access to approximately 27,000 acres of farmland in seven provinces and its extensive distribution network provides direct or third party distribution in 14 provinces. For more information about Agria Corporation, please visit

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Agria Corporations strategic and operational plans, contain forward-looking statements. Agria may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Agria's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, Agria's limited operating history makes it difficult to evaluate our future prospects and results of operations; natural or man-made disasters could damage our seed production, which would cause us to suffer production losses and a material reduction of our revenues; outbreaks of disease in livestock and/or food scares in China would materially and adversely affect our sheep breeding business; we primarily rely on arrangements with village collectives to produce our corn seed products, and if we are unable to continue these arrangements or enter into new arrangements with other village collectives to increase our production, our total land acreage devoted to corn seed production may decrease and our growth may be inhibited; our growth prospects may be materially and adversely affected if we are unable to continue to develop or acquire products to meet the demands of Chinese farmers or to produce our existing products in sufficient quantities; and one or more of our distributors may engage in activities that are harmful to our brand and to our business, and other risks outlined in Agria's filings with the U.S. Securities and Exchange Commission, including its Form F-1/A filed on November 2, 2007. All information provided in this press release is as of February 25, 2008, and Agria does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

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