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Board Appointment, Executive Changes & Acquisitions Agreements <FEED.O>

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Sunday, July 17, 2011 7:12:07 AM
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Board Appointment, Executive Changes & Acquisitions Agreements <FEED.O>
http://pdf.reuters.com/pdfnews/pdfnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20110715:nPnCL35809


NEW YORK, July 15, 2011 /PRNewswire-Asia/ -- AgFeed Industries, Inc. (Nasdaq: FEED, NYSE Alternext: ALHOG)
("AgFeed" or the "Company"), an international agribusiness with operations in the U.S. and China, announced
organizational changes and acquisitions agreements in fulfillment of its previously announced entry to the
harvest and processing segment of the pork business.

In connection with the ongoing transformation of the Company, the Board of Directors today announced executive
promotions and reassignments. In addition the Board elected a new independent director. These organizational
changes are intended to align the Company's personnel with its continued transformation, allowing it to respond
to the changing international operating environment and its strategy of operating at numerous points of the pork
value/supply chain.

John A. Stadler, AgFeed's Chairman & Interim Chief Executive Officer, stated, "Our vision is to align global
production resources to supply safe pork and pork products to the consumer through our branded pork processor
customers. These executive changes and acquisition opportunities represent the natural progression of the
strategic direction initiated during the spring of 2010, and first fully visible through the acquisition of M2P2,
to develop an integrated, controlled, production system that would allow us to capture earnings throughout the
international hog/pork production process."

The Board has appointed one of its current members, K. Ivan F. Gothner, as Vice Chairman to work along side Mr.
Stadler in the ongoing transformation, development and growth of the Company. In addition, Glenn McClelland,
the current President & CEO of the Company's US based hog production business, M2P2, has been appointed our Chief
Operating Officer, while Clay Marshall, the current CFO of M2P2, has been appointed our Chief Financial Officer.

"We are all on a mission," stated Mr. Gothner, "to establish AgFeed as the leader in supplying an expanding base
of global customers with the highest quality pork while demonstrating leadership in food safety, production
efficiency, sustainability and environmental stewardship."

In addition to these executive changes the Board appointed David Michael Johnson as a director. Mr. Johnson is
currently the President and Chief Executive Officer of Cattlco, LLC, which is among the 25 largest cattle feeding
operations in the United States. Prior to becoming president and chief executive officer of Cattlco, Mr.
Johnson held executive positions with privately held companies involved in natural resources, agribusinesses and
real estate.

The Company also announces that it has entered into separate non-binding letters of intent to acquire Pine Ridge
Farms, LLC ("PRF") and Kansas City Sausage Company, LLC ("KCS"). It is expected that the combined businesses will
add over $180 million of annualized revenue and over $13 million of EBITDA to the Company's results.

These acquisitions represent AgFeed's entry into the harvest and processing segment of the pork business and will
provide the base of human resources necessary to expand this business and develop this segment of our business as
an adjunct to the western-style hog farms under development in China. This processing capability is the
necessary precursor to the Company's global market strategy.

PRF located in Des Moines, Iowa is a leading specialty hog processing facility established in January 2004. It
has processing capacity of over 3,000 animals per day. PRF manufactures pre-rigor for sausage, fresh and frozen
pork products, and private label products. To minimize the earnings volatility common to commodity businesses
PRF has initiated a series of innovative projects and initiatives including processing pork hides, custom ham
boning operations and butcher pork processing for a major pork production company. PRF currently exports
products to China and other Pacific Rim countries.

KCS located in Kansas City, Kansas started operations in late 2009 and is arguably one of the newest and most
efficient and well-designed sausage facilities in the United States. KCS is a private label sausage company
focused on its customer with the upmost confidence regarding food safety, cost effectiveness, price stability and
market performance. With customers including major retailers and food service companies, KCS sells products
domestically and also exports products to customers in Canada, Mexico, the Caribbean, and the Pacific Rim.

The transactions will be structured as the sale of assets by PRF and KCS to AgFeed. The completion of these
transactions is subject to a number of conditions, including the completion of due diligence, negotiations and
execution of definitive agreements, board approvals and financing. Pending transaction completion, PRF and KCS
have each agreed that its directors, managers, members, officers, employees and agents will not solicit or
participate in other negotiations or discussions, or provide non-public information with respect to any
investment in, or acquisition of, PRF and KCS, respectively, or any similar transaction for a certain period of
time.

ABOUT AGFEED INDUSTRIES, INC.

NASDAQ Global Market Listed AgFeed Industries (www.agfeedinc.com) is an international agribusiness with
operations in the U.S. and China. AgFeed has two business lines: animal nutrition in premix, concentrates and
complete feeds and hog production. In the U.S., AgFeed's hog production unit, M2P2, is a market leader in setting
new standards for production efficiency and productivity. AgFeed believes the transfer of these processes,
procedures and techniques will allow its new Western-style Chinese hog production units to set new standards for
production in China. China is the world's largest pork market consuming 50% of global production and over 62%
of total protein consumed in China is pork. Hog production in China currently enjoys income tax free status.



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http://www.dailylivestockreport.com/documents/dlr%2010-15-2010.pdf


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