AgFeed Industries Is Not Affected by Winter Storms in South China

Monday February 4, 6:14 am ET
AgFeed's Commercial Hog Farms Benefit From Adequate Heating Facilities and Record High in Hog Prices

SHANGHAI, CHINA--(MARKET WIRE)--Feb 4, 2008 -- AgFeed Industries, Inc. (NasdaqGM:FEED - News) (website: www.agfeedinc.com), a market leader in China's premix animal nutrition and hog raising industry, announced today that AgFeed's hog raising business has not been impacted by the winter storms in South China due to the Company's adequate heating facilities at its 6 commercial hog farms.

Songyan Li, PhD, AgFeed's Chairman, commented, "China has recently experienced severe winter weather that has not been experienced in decades in normally warm South China. Official news channels reported the death of almost one million hogs during the recent weather. AgFeed is pleased that due to our in-depth knowledge about the hog raising industry, adequate heating facilities, feed expertise and high quarantine standards, our hog farms are equipped to deal with severe weather conditions and disease outbreak. AgFeed expects the winter weather to cause additional shocks to the already very tight hog supply in China especially during the Chinese New Year. Since hog prices are market driven and approximately 75% of China's 600 million annual hog production is from poorly equipped backyard individual hog farmers, China's hog supply will remain fragile for years to come. AgFeed's business benefits from our industry expertise as well as the historical opportunity to potentially become a major player in China's tax free and highly profitable commercial hog raising industry."

AgFeed noticed a news article that was published in Newsweek on Feb 2, 2008, titled "China and the Great Pig Panic" (http://www.newsweek.com/id/107548). AgFeed is pleased to note that the article accurately describes the current severe pork shortage problem in China.

About AgFeed Industries, Inc.

AgFeed is a U.S. public company listed on the NASDAQ Global Market. Through its operating subsidiaries in China, AgFeed is a market leader in China's fast growing premix animal nutrition industry. AgFeed has also entered into China's hog raising industry since 2007 through multiple acquisitions. The premix market in which Agfeed operates is an approximately $1.6 billion segment of China's animal feed market, an industry which generated approximately $40 billion in 2006, according to the China Feed Industry Association. There are approximately 600 million hogs raised in China each year, compared to approximately 100 million in the US. Approximately 75% of China's total hog supply is from backyard individual hog farmers. Approximately 65% of China's annual meat consumption is pork.

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. There can be no assurance that actual results will not differ from the company's expectations. AgFeed's actual results may differ from our projections. Further, preliminary results are subject to normal year-end adjustments. 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.

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