SOURCE: Yasheng Group

April 04, 2011 13:04 ET

Yasheng Expects Significant Increase in Wheat Crop Yields for 2011

Due to the Adoption of Innovative Technology of Dry Land Wheat Planting

REDWOOD CITY, CA--(Marketwire - April 4, 2011) - Yasheng Group (OTCQB: YHGG) (FRANKFURT: YSF), a high-growth diversified China-based agricultural conglomerate with US headquarters in California, today announced that it is expecting a significant increase in wheat crop yields as a result of the company's adoption of the innovative technology of dry land wheat planting.

It is anticipated that the adoption of dry land wheat planting this year will increase yields by over 600 kilograms per acre. The technology, also known as "film-mulched and bunch-seeded cultivation," was recently appraised and received the recognition from the Science and Technology Department of Gansu Province. According to test data provided by Gansu Agricultural Technology Promotion Station, Gansu Province grew over 28,000 acres of wheat with this advanced technology, which generated an average yield of 1,835 kilograms per acre, increasing by 628 kilograms per acre or 52.1% compared with that of the outdoor sowing in drill. In the course of growing winter wheat in 2010-2011, Gansu Province grew 50,000 acres more with this upgraded technology.

The acceptance of conventional technology of film-mulched and bunch-seeded cultivation was not widespread due to its intricate process which was labor and time intensive. Conversely, the new technology is innovative in its full coverage with film, evaporation reduction, rainwater-collecting and soil moisture conservation. Further, it is simpler and less labor intensive than the conventional one.

It is suitable for wheat planting in the terraces and terrace lands, deep soil and middle-upper fertility utilizing film-mulched and bunch-seeded technology. The yield-increasing effect is most obvious in the arid and semiarid zones with annual precipitation of approximately 350 mm and 1,800 meters above sea level below.

Chairman Zhou Chang Sheng said, "Given the inflationary pressures on food prices, it is essential that we in the agricultural industry enhance our efficiencies by adopting innovative ways of growing crops. In addition, the higher wheat yields that will come as a result of this new technology we will meet the demand we are currently experiencing."

Yasheng Group

Yasheng Group (OTCQB: YHGG) (FRANKFURT: YSF) (www.yashenggroup.com), founded over 30 years ago, is a US holding company that conducts primarily agricultural operations in the Northwest of China. Today it is one of China's leading producers and marketers with six major product segments including field crops, vegetables, fruit, specialty crops, hops, hemp, seeds, beef and poultry. Yasheng is a supplier of high-quality agricultural products to world-famous conglomerates such as McDonald's, KFC, Tsingtao Beer, and Pepsi. The company is lead by a highly qualified management team and it has total assets of approximately $1.7 billion, over 15,000 employees, and a history of strong sales and earnings growth.

Safe Harbor Statement

Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the company's various filings with the Securities and Exchange Commission. The company assumes no obligation to update these forward-looking statements.

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