AgFeed Industries Reports Year-End Equity Financing and Updates

Monday December 29, 8:29 am ET

NEW YORK, Dec. 29 /PRNewswire-Asia/ -- AgFeed Industries, Inc. (Nasdaq: FEED - News), the largest commercial hog producer and the largest premix feed company in China, today announced that it will raise gross proceeds of $8.75 million through the sale to institutional investors of 5 million newly issued common stock units at $1.75 per unit under an effective Form S-3 Registration Statement. Each unit consists of one share of newly issued common stock and a warrant to purchase 0.7 of a share of common stock for $2.50 a share, which is exercisable over a five-year period. Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM - News), served as exclusive placement agent for the offering.

The Company also reported that it had suspended its previously announced share buyback program. During the period from October 6, 2008 through October 31, 2008, the Company repurchased 367,295 shares and recorded a gross expense of $1,793,330. No additional shares have been repurchased.

Dr. Songyan Li, AgFeed's Chairman, commented, "We are taking this opportunity to raise additional funds as we proceed into an uncertain capital market environment for 2009. With the year-end financing combined with retained earnings from our two strong business lines and cash on hand, AgFeed goes into the New Year in a strong financial position to execute against its strategic business plan, which is focused on increasing our efficiency and dominance in China's premix animal feed and hog production businesses. Our capital position now assures that we can proceed with greater rapidity in taking on certain strategic projects and making key capital expenditures that will generate enhanced returns to the Company and our shareholders.

Gerry Daignault, AgFeed's Chief Operating Officer, further added that "Having spent the last month on the ground inspecting our hog farms and feed production facilities throughout China, I am very pleased to see the progress the Company has made with all of its integration projects and am most excited to have shared experiences and insights with our very talented and hardworking team of supervisors and workers who are driven to make AgFeed one of China's premier companies. I am honored to work with such knowledgeable industry professionals as Dr. Li and our CEO, Mr. Xiong, in developing and implementing our strategic plan, which is geared toward taking all we have built and acquired to date to the highest level."

About AgFeed Industries, Inc.

NASDAQ Global Market listed AgFeed Industries (www.agfeedinc.com) is a U.S. company with its primary operations in China. AgFeed has two profitable business lines -- premix animal feed and hog production. AgFeed is China's largest commercial hog producer in terms of total annual hog production as well as the largest premix feed company in terms of revenues. China is the world's largest hog producing country that produces over 600 million hogs per year, compared to approximately 100 million hogs in the U.S. China also has the world's largest consumer base for pork consumption. Over 65% of total meat consumed in China is pork. Hog production in China enjoys income tax free status. The pre-mix feed market in which AgFeed operates is an approximately $1.6 billion segment of China's $40 billion per year animal feed market, according to the China Feed Industry Association.

SAFE HARBOR DISCLOSURE NOTICE: This release contains forward-looking information about the Company's financial results and estimates, business plans and prospects that involve substantial risks and uncertainties. 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. Among the factors that could cause actual results to differ materially are the following: the availability and prices of live hogs, raw materials, fuel and supplies; food safety; livestock disease; live hog production costs; product pricing; the competitive environment and related market conditions; operating efficiencies; interest rate and foreign currency exchange rate fluctuations; access to capital; the cost of compliance with environmental and health standards; actions of the PRC government; governmental laws and regulations affecting our operations, including tax obligations; the ability to make effective acquisitions at the prices we expect and successfully integrate newly acquired businesses into existing operations; the success of our research and development activities; changes in generally accepted accounting principles; uncertainties related to general economic, political, business, industry, regulatory and market conditions; any changes in business, political and economic conditions due to the threat of terrorist activity; and other risks and uncertainties described in the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and in its subsequent Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking statements because actual results may differ materially from those expressed in, or implied by, the statements. Any forward-looking statement that the Company makes speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

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