Hanfeng Evergreen Inc.
TSX : HF

Hanfeng Evergreen Inc.

May 06, 2008 07:30 ET

Hanfeng Receives Approval for Heilongjiang Railway Spur

-- Dedicated spur will improve logistics and reduce costs --

TORONTO, ONTARIO--(Marketwire - May 6, 2008) - Hanfeng Evergreen Inc. ("Hanfeng") (TSX:HF), is pleased to announce that it has received all necessary approvals to proceed with the construction of a dedicated railway spur connecting Hanfeng's Heilongjiang facility with the national railway in China. In addition to the installation of a 4.2-kilometer rail line and connections, the project will include the construction of platforms and additional warehouses for loading and storage of Hanfeng products and raw materials. Construction of the railway spur and the associated structures is expected to be completed in the fourth quarter of 2008. Hanfeng's capital commitment for the project is approximately $4.1 million (RMB 28 million).

"The installation of the dedicated railway spur will reduce our costs by improving the flow of raw materials and finished goods at the Heilongjiang facility," stated Xinduo Yu, President and CEO of Hanfeng. "Currently, we are required to truck materials to and from the rail depot, which can require us to load and off load as many as six times. Once the rail spur is operational, we will significantly reduce the time and cost of handling by shipping and receiving materials directly. We estimate that our annual cost savings could be approximately $1.1 million."

The Heilongjiang facility has four plants with a combined annual design capacity of 450,000 tonnes. Adding the dedicated rail spur, combined with newly constructed roads to the facility, will provide Hanfeng with the most efficient highway and rail access for the transportation of raw materials and finished goods in the region.

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.

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