Hanfeng Evergreen Inc.
TSX : HF

Hanfeng Evergreen Inc.

October 14, 2008 08:30 ET

Hanfeng Evergreen Inc. Announces Intention to File for Normal Course Issuer Bid

TORONTO, ONTARIO--(Marketwire - Oct. 14, 2008) - Hanfeng Evergreen Inc. ("Hanfeng" or the "Company") (TSX:HF) announced today its intention to make a normal course issuer bid, subject to acceptance by the Toronto Stock Exchange ("TSX").

Under the normal course issuer bid, Hanfeng will propose to purchase through the facilities of the TSX, from time to time over the next 12 months, if considered advisable, up to an aggregate of 3,753,791 common shares, being approximately 10% of Hanfeng's current public float (as defined in the by-laws, regulations and policies of the TSX). Purchases may commence through the TSX two trading days after acceptance of the normal course issuer bid by the TSX, and will conclude on the earlier of the date on which purchases under the bid have been completed and the anniversary of the bid. All common shares purchased by Hanfeng will be cancelled.

This will be Hanfeng's first issuer bid. There have been no previous purchases by Hanfeng of its common shares.

The Board of Directors of Hanfeng believes that the proposed purchases are in the best interests of Hanfeng's shareholders and are a desirable use of corporate funds. The Company's cash on hand as well as strong cash from operations will fund the bid program, as well as continue to support Hanfeng's expansion and growth opportunities.

Business Update

Operationally, Hanfeng continues to experience strong demand for its unique, industry leading slow and controlled release fertilizers. The Company currently has 725,000 tonnes of annual design capacity with three fully funded joint venture expansion projects, which when completed, will increase annual production capacity by approximately 143,000 tonnes. The Company is also on track to roll out its distribution network in the first half of 2009 in five key agricultural regions in China.

Supporting the demand growth is increased support and promotion through various government entities including the National Agro-Tech Extension and Service Centre (directly administered by the Ministry of Agriculture) for reduced carbon, environmentally friendly fertilizers, and especially Hanfeng's slow and controlled release products. Using advanced slow release technologies, Hanfeng is offering China the lowest cost fertilizer on a per tonne crop output basis. This important economic benefit, plus the support from the government for these types of products, has positioned Hanfeng as the industry leader in slow and controlled release fertilizers in China.

While the Company has demonstrated its ability to pass on price increases for its three main nutrients (Nitrogen, Phosphate and Potash) on a dollar for dollar basis, the price of key materials that are used to convert these nutrients into slow release products such as sulfur, wax, and formaldehyde have begun to drop. The Company expects that these reduced conversion costs will have a positive impact on margins.

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. www.hanfengevergreen.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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