SOURCE: Yasheng Group

July 19, 2010 08:00 ET

Yasheng Group Positioned for Steady Growth

REDWOOD CITY, CA--(Marketwire - July 19, 2010) -  Yasheng Group (PINKSHEETS: YHGG) is positioned for steady long-term growth as a result of investments to expand cultivation as the demand for food and agriculture products is seen to rise from population growth, increasing demand for bio-fuel feedstock, and continued scarcity of arable land.

World food prices will rise this decade, boosted by a growing population and changing diets, the OECD and the United Nations' Food and Agriculture Organization said in their annual outlook report.

"Real prices of all products other than pig meat are expected to be above their average 1997-2006 level," according to the Paris-based Organization for Economic Cooperation and Development and the Rome-based FAO.

Growing demand from emerging markets and for bio-fuel production will send prices soaring, according to the OECD and the UN Food and Agriculture Organization.

Food prices are set to rise as much as 40% over the coming decade amid growing demand from emerging markets and for bio-fuel production, according to a recent United Nations report which warns of rising hunger and food insecurity.

In 2010, Yasheng Group launched critical new industrial cultivation initiatives with several of its farms as a result of ongoing investments during 2008 and 2009 for land acquisitions, infrastructure, and soil conditioning. These farms have become demonstrably fertile and during 2011 and 2012 the Company will be rotating current crops into higher-end products with stronger demand and better margins.

Gansu Province, where Yasheng has its principal operations, has a vast amount of undeveloped and rich arable land. This is coupled with long sunny days and other favorable environmental factors far removed from heavy industry. With its long standing relationships and strong government support within the Gansu Province, Yasheng Group is uniquely positioned to access more land well into the next decade for continual expansion.

Yasheng has the know-how and proven track record of transforming undeveloped and rural, rich arable land into more productive agriculture bases. With its focus on high tech agricultural practices and novel water saving techniques, Yasheng Group is one of the best positioned companies in its space to continue to expand production over the coming decades to meet the ever increasing demands of agriculture and food products.

About Yasheng Group:

Yasheng Group (PINKSHEETS: YHGG) is a diversified agriculture conglomerate incorporated in California, operating in hi-tech agriculture as its core business with advantages in rich land, advanced irrigation technology, strong R&D, agro and biotechnology capabilities, as well as a vast experienced workforce. The company product portfolio contains 6 major agro segments: field crops, vegetables, fruits, specialty crops, seeds, and poultry. With total assets of approximately $1.7 billion and over 15,000 employees, Yasheng Group has 155,097,355 shares issued and outstanding as of December 31, 2009.

Further information concerning Yasheng Group can be found on the corporate website: http://www.yashenggroup.com/

Forward-Looking Statements:

Certain statements contained in this press release are forward-looking statements that involve risks and uncertainties. The statements contained herein that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended.

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