Hanfeng Evergreen Inc.

Hanfeng Evergreen Inc.

September 13, 2010 08:30 ET

Hanfeng Completes Construction of Indonesian JV Facility

- Commissioning underway

- 100% of first year production pre-sold to JV partners

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2010) - Hanfeng Evergreen Inc. (Hanfeng) (TSX:HF), a leading provider of value-added fertilizers in China, today announced that it has completed construction of the 150,000 metric tonnes per annum (mtpa) slow and controlled release fertilizer joint venture facility in Surabaya, Indonesia (the "JV facility"). The JV facility is the first to be constructed by Hanfeng outside of mainland China and is jointly owned by PT. Matahari Kahuripan Indonesia (the "Makin Group"), the largest producer of palm oil and tobacco in Indonesia, and PT. Sumber Agrindo Sejahtera ("Sejahtera"), Indonesia's largest agricultural distributor.

The newly completed initial phase includes a 100,000 mtpa slow release NPK plant and a 50,000 mtpa slow release coating plant. The facility was constructed in close proximity to port and rail facilities, as well as a urea production plant, with which Sejahtera Group has a strong long-term relationship. Despite numerous challenges, including equipment and materials importation delays and extreme weather conditions, the JV facility was completed on budget. Under the final terms of the joint venture agreement, the Makin Group will purchase a portion of the JV production for its oil palm plantation, and Sejahtera will purchase the remainder for sale through its extensive distribution network in Southeast Asia.

"Our demonstration trials in Malaysia and Indonesia proved that the crops applied with Hanfeng slow and controlled release products delivered extraordinary performance," stated Xinduo Yu, president and CEO of Hanfeng. "Like China, yield enhancement is a key concern in Southeast Asia, and our entire portfolio of value- add products are extremely suitable for the hot and rainy climate in the region. We see a significant opportunity in this region for continued growth."

The grand opening ceremony of the JV facility will be held in Surabaya, Indonesia on October 18. Anyone interested in attending the ceremony should contact Hanfeng for further details.

About PT. Matahari Kahuripan Indonesia

PT. Matahari Kahuripan Indonesia (the "Makin Group") owns 1,700,000 hectares ("ha") oil palms plantation (1 ha oil palm needs 1 ton compound fertilizer), which is expected to expand to 3,000,000 hectares by 2015. Currently, there are 4 million ha oil palm plantations in Indonesia, which is expected to expand to 7 million ha by 2015. In addition, the Makin Group's tobacco plants also consume about 400,000 tonnes fertilizers each year, and the revenue of its tobacco business will be used to further expand its oil palm production. The Makin Group is one of the largest ten companies, and also the second largest tobacco company in Indonesia. With more than 20 subsidiaries, its scope of operation includes tobacco plantation, as well as oil palm plantation and palm oil production.

About PT. Sumber Agrindo Sejahtera

PT. Sumber Agrindo Sejahtera ("Sejahtera") is the largest agricultural distributor in Indonesia. It distributes fertilizers, pesticides, agricultural machineries, etc. through its distribution network in Malaysia, Indonesia, Thailand and other Southeast Asian markets. Last year, Sejahtera sold over 700,000 tons fertilizers.

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. The Company's production facilities are located in prime agricultural regions of China and Indonesia. Hanfeng is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange. www.hanengevergreen.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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