Hanfeng Evergreen Inc.

Hanfeng Evergreen Inc.

February 20, 2008 07:30 ET

Hanfeng Completes Second 50,000 Tonne Specialty Coatings Plant in Heilongjiang

TORONTO, ONTARIO--(Marketwire - Feb. 20, 2008) - Hanfeng Evergreen Inc. ("Hanfeng") (TSX:HF), the largest producer of slow and controlled release fertilizers in China, today announced that it has completed commissioning of the second phase of its 100,000 tonne per annum ("tpa") expansion of the Heilongjiang facility in China. The 50,000 tpa polymer/sulfur coated compound ("PSCF") plant was completed on budget and ahead of schedule. Hanfeng announced the completion of the first 50,000 tpa sulfur coated NPK (nitrogen, phosphate, potash) compound fertilizer plant ("SCF") in November 2007.

Both coating technologies, developed by Hanfeng's own R&D team in Shanghai, allow the custom designing of various multiple nutrient blends, including micronutrients. The PSCF product, using Hanfeng's polymer coating, provides more precise control of the releasing period for the nutrients. Although traditionally more expensive to manufacture, Hanfeng's polymer coating process allows the Company to produce and sell the PSCF at very competitive levels.

"The SCF and PSCF technology are new to China and will initially target the agriculture market," stated Mr. Xinduo Yu, President and CEO of Hanfeng Evergreen Inc. "However, due to the products versatility and superior quality, they will be very competitive in the international high-end urban greening and cash crop markets as well. We have received significant interest from Asia, Australia and North America and expect first sales and commercial production from the PSCF plant to commence in March."

The existing Heilongjiang tower granulation plant will supply the compound NPK granules for the high-margin specialty coating plants. With the completion of the 50,000 tpa second phase, the Heilongjiang facility has 450,000 tpa of design capacity, with a full product offering that includes homogeneous granules, blended products, compound fertilizers, and specialty coating products. Combined with the Jiangsu facility, Hanfeng now has 700,000 tpa of design capacity from 7 plants in China.

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.

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.

Contact Information