SOURCE: Sarraf Gentile LLP

December 12, 2008 20:00 ET

Sarraf Gentile LLP Files Securities Class Action Against China Organic Agriculture, Inc.

NEW YORK, NY--(Marketwire - December 12, 2008) - On December 12, 2008, the law firm of Sarraf Gentile LLP commenced a securities fraud class action lawsuit on behalf of those investors who acquired the securities of China Organic Agriculture, Inc. ("China Organic" or the "Company") (OTCBB: CNOA) during the period July 12, 2007 to August 14, 2008, inclusive (the "Class Period"). The lawsuit is pending in the United States District Court for the Southern District of New York, alleges violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and names as defendants China Organic and certain of its officers and directors.

According to the complaint, the defendants took the Company public in early 2007 and made numerous statements during the Class Period regarding the Company's prospects and sales. Defendants, for example, claimed to be developing organic rice for sale in China, but according to the complaint, never developed any kind of product that could be sold at a competitive price. According to the complaint these and other Class Period statements were false and misleading, designed to inflate the price of the Company's stock. Indeed, according to the complaint, insiders sold tens of millions of dollars worth of Company stock during the Class Period, acquired for themselves a luxury retreat in California, sold off the Company's only significant operation and within eighteen months of taking the Company public left only an empty shell and huge shareholder losses.

Plaintiff is represented by the law firm of Sarraf Gentile LLP, which has extensive experience in the prosecution of class actions on behalf of investors.

If you bought the securities of China Organic between July 12, 2007 and August 14, 2008, you may, no later than 60 days from today, move the Court to appoint you as lead plaintiff, a representative party that acts on behalf of other class members. The Court must determine whether the class member's claim is typical of other class members' claims, and whether the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Sarraf Gentile LLP or other counsel of your choice, to serve as your counsel in this action.

If you would like to participate in this action or would like additional information about the lawsuit, please contact Joseph Gentile at Sarraf Gentile LLP, 11 Hanover Square, New York, NY 10005 (telephone: 212-868-3610; e-mail:

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