NEW YORK, June 4, 2007 (PRIME NEWSWIRE) -- AgFeed Industries, Inc. (OTCBB:AGFI) (www.agfeedinc.com), a leader in China's premix animal nutrition industry and the first such company publicly traded in the U.S., today announced that the Company has launched its 120th franchise chain store in China. AgFeed recently hosted a visit by its U.S. board members and advisors to the Company's facilities in China. Photos from the China trip and franchise chain store information are available at the Company's website.
Songyan Li, Ph.D., Chairman of AgFeed Industries commented: "Since we pioneered the model of independently owned franchise chain store sales in January 2007, we have experienced significant success both in product sales and new sales channel development. Our current dual channel product distribution system is unique and highly effective in our industry. We have developed over 600 nationwide wholesalers targeting commercial hog farms and over 120 franchise chain stores targeting individual farmers. We will continue to deepen market penetration by adding new distribution outlets throughout the year. As pork prices are at the highest level in the last eight years in China and as wealthier Chinese consumers demand more and quality meat products, we are experiencing strong sales for our products across all product lines."
John Egan, Jr., an AgFeed independent director and the former Chairman of the Philadelphia Stock Exchange commented: "Our board members and advisors recently completed a tour of AgFeed's facilities in China. We visited company facilities and met with wholesale distributors and franchise chain store owners. We are very impressed with management's ability in executing our growth strategies. The growing Chinese economy and the favorable market environment which we are in will benefit AgFeed greatly in achieving its financial targets. Abundant opportunities for acquisitions also exist in the vast and highly fragmented animal nutritional feed market in China. The Board supports AgFeed's listing application to the Nasdaq Stock Market and we look forward to an exciting year of rapid growth together with AgFeed."
The recent China tour was participated by the Company's independent board members Messrs. Robert Masucci, AgFeed's Chairman of Audit Committee; John Egan Jr., Independent Board Member; strategic advisor Nicholas Giordano, the former CEO of the Philadelphia Stock Exchange; William Uchimoto Esq, AgFeed's legal counsel and Partner of law firm Saul Ewing LLP, and management consulting expert Brian Gleason of Phoenix Management.
AgFeed announces that it is in various stages of discussion to acquire three additional businesses in the animal feed industry. The Company expects the three businesses to contribute additional revenue and net income to AgFeed. The Company expects to close these acquisitions in the coming months.
About AgFeed Industries, Inc.
AgFeed Industries is the first China-based animal nutritional product company publicly traded in the U.S. Through its operating subsidiaries which were founded in 1995 in China, AgFeed is a leading manufacturer, marketer and distributor of premix animal nutrition products targeting China's vast and growing animal feed market. China's animal feed market was approximately $40 billion in 2006 according to China Feed Industry Association.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect AgFeed's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in AgFeed's filings with the Securities and Exchange Commission.