China Organic Agriculture, Inc. fka CNOA

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China Organic Agriculture Signs $4.3 million Sales Contract with Beijing Jingu Hengfa Trading Company
Monday May 12, 8:29 am ET

LOS ANGELES & JILIN, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB: CNOA - News), a growth-driven agricultural products company leading China's organic foods revolution, announced today that the Company, has entered into a three month sales agreement with Beijing Jingu Hengfa Trading Company, with a value equivalent to $4.3 million.

Beijing Jingu Hengfa is a well respected rice distributor in the Beijing region. China Organic engages in the production and sale of mid to upscale organic and green rice. Jingu Hengfa will be selling organic rice supplied by China Organic which will be packed in cases of six vacuum bags, with each bag weighing up to six kilograms. Jingu Hengfa will sell 1,760 tons of rice valued at $4.3 million over a three month period.

Changqing Xu, CEO of China Organic Agriculture said, “Our rice fields are in a location highly suitable for the growth of organic and green rice, and our close working arrangements with the local farmers serve as an advantage for the Company. With its well established base in the cultivation and processing of organic and green rice, the Company also uses this business core to enhance the development of distribution channels.”

Mr. Xu added “Our goal is to build a national grain market system with a complete business chain which includes grain cultivation, processing, marketing, wholesale, retail, storage, and distribution. This is a new system planned and developed by our Company’s management. The Company decided to choose the high-quality rice production area Wuchang City to implement this new system because the enterprises in this region have well established environmental conditions and food hygiene standards. Thus, the Company can obtain high quality rice supplies at an attractive price and maintain our gross profit rate. We believe the development of our operations will help China Organic take a giant step towards building its own distribution channels as well as profiting from the increase in the price of rice.”

About China Organic Agriculture

China Organic Agriculture is among the largest producers of green and organic rice in China. CNOA controls all aspects of the process from developing seeds to planting, processing, R&D and distribution. The Company has an extensive distribution network, located in the major cities in China.

CNOA has experienced significant growth since its inception in 2002. CNOA has put solid plans in place to markedly expand sales.

The quality of CNOA’s products results in the ability to obtain prices approximately 15% higher than comparable products. CNOA has in excess of 6,260 acres dedicated to the production of green and organic rice. The irrigation system is fed from the Nen River, one of the last unpolluted rivers in China. The Company’s flagship brand, ErMaPao, has won several quality awards, holds the highest organic certification and is one of the most popular brands in the country.

For more information, please visit: www.chinaorganicagriculture.com

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning estimates of, and increases in, production, cash flows and values, statements relating to the continued advancement of China Organic Agriculture’s products and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," and similar expressions are forward-looking statements. Although China Organic Agriculture Inc. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include, but are not limited to, those set forth in our reports filed with the Securities and Exchange Commission, together with the risks discussed in our press releases and other communications to shareholders issued by us from time to time, such as our ability to raise capital as and when required, the availability of raw products and other supplies, competition, the costs of goods, government regulations, and political and economic factors in the People's Republic of China in which our subsidiaries operate.


Contact:

China Organic Agriculture, Inc.
Kevin McEnery, 646-200-6302
Managing Director - Finance
[e-mail]
or
Steve Wan, 310-441-9777
Vice President
[e-mail]
or
Winning IR Company, Ltd.
Darren Minton, 212-823-0523
[e-mail]

Source: China Organic Agriculture, Inc.

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