AgFeed Industries Inc. (fka FEEDQ)

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News for 'FEED' - (AgFeed Industries, Inc. Establishes Special Committee to Conduct Investigation Into Accounting Practices of Chinese Operations; Announces Appointment of New Director)


NEW YORK, Sept. 29, 2011 /PRNewswire via COMTEX/ -- AgFeed Industries, Inc.
(Nasdaq: FEED, NYSE Alternext: ALH! OG) ("AgFeed" or the "Company") announced
today that its Board of Directors has established a special committee to
investigate the accounting relating to certain of the Company's Chinese farm
assets (acquired during 2007 and 2008) used in its hog production business, as
well as the validity and collectability of certain of the Company's accounts
receivables relating to its animal nutrition business in China and any other
issues that may arise during the course of the investigation.

The special committee is comprised of directors Milton P. Webster, III and Bruce
Ginn, a newly appointed director, as described further below. The special
committee is authorized to retain experts and advisers to carry out its
investigation and has engaged Latham & Watkins LLP to serve as its independent
counsel in connection with the investigation.

The Company does not intend to provide further comment regarding the matters
under investigation until! after the special committee concludes its
investigation.

Th e Company also announced today that the Board of Directors appointed Bruce
Ginn as a director on September 25, 2011. Mr. Ginn has extensive experience in
the agriculture and livestock industries. Mr. Ginn is currently a Partner at BMI
Ag Services, an agriculture holding and consulting company that focuses on
livestock production and sales and operates pork processing companies, and the
Chief Executive Officer of the Kansas City Sausage Company, LLC. Previously, Mr.
Ginn held a number of executive positions at Oscar Mayer/Kraft, ConAgra and
Sparks Commodities Inc. Mr. Ginn has also served on the faculties of a number of
universities, including Texas Tech University and Colorado State University. Mr.
Ginn holds graduate and undergraduate degrees in agricultural economics. As
previously announced on July 15, 2011, the Company has entered into non-binding
letters of intent to acquire Kansas City Sausage Company, LLC and Pine Ridge
Farms, LLC. ! Mr. Ginn has an ownership interest in these companies and currently
serves as the CEO of Kansas City Sausage Company, LLC. The exclusivity periods
for each of these letters of intent has been extended to December 1, 2011. The
Company has halted negotiations and anticipates finalizing negotiations for
these transactions following the conclusion of the special committee's
investigation.

ABOUT AGFEED INDUSTRIES, INC.

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 pro! duction
in China. China is the world's largest pork market consumin g 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.

FORWARD-LOOKING STATEMENTS

Certain statements regarding AgFeed set forth in this press release contain
forward-looking information within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. You can identify these statements by the fact
that they use words such as "will," "anticipate," "estimate," "expect,"
"project," "intend," "plan," "believe," "target," "forecast" and other words and
terms of similar meaning in connection with any discussion of future operating
or financial performance or business plans and prospects. This forward-looking
information is subject to numerous material risks, uncertainties and
assumptions, certain of which are beyond the control of AgFeed, including
general economic and industry conditions, the factors disclosed in the Compa! ny's
annual and quarterly reports filed with the Securities and Exchange Commission,
as well as those related to the Special Committee's investigation and/or
findings. Such risks relating to the special committee's investigation include:
uncertainties related to the identification and resolution of accounting issues
under investigation or resulting from a broadening of the scope of the
investigation; a negative impact on the Company's relationships with its
customers or suppliers as a result of the announcement of the investigation;
increased regulatory or media scrutiny; the initiation of new legal or
regulatory proceedings involving the Company; and volatility of the Company's
stock price. Actual results, performance or achievement could differ materially
from those expressed in, or implied by, this forward-looking information and,
accordingly, no assurance can be given that any of the events anticipated by the
forward-looking inform! ation will transpire or occur, or if any of them do so,
what benefi ts AgFeed will derive therefrom. AgFeed disclaims any intention or
obligation to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as required by
applicable securities laws. The information contained in this press release is
made as of the date of the press release, even if subsequently made available by
AgFeed Industries on its website or otherwise.

Contact: Investor Relations: [phone], http://www.agfeedinc.com/contact

SOURCE AgFeed Industries, Inc.



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KEYWORD: New York

China

INDUSTRY KEYWORD: AGR

SUBJECT CODE: ACC

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