AgFeed Industries, Inc. is a US public company listed on the NASDAQ Global Market under stock symbol “FEED”. We are the largest commercial hog producer and the largest premix feed company in China. Founded in 1995, we currently have over 1,500 employees and a highly profitable business.

With over 600 million hogs produced each year, compared to 100 million in the US, China represents more than 50% of the world's annual hog production as well as the world's largest and most profitable pork consumer markets. We are a strategic platform for accessing China's vast feed and hog raising industries.

As of September 2008, we own and operate 28 commercial hog farms with annual hog production of more than 650,000 hogs as well as 5 premix feed plants. Our hog farms and feed plants are strategically located in south China where some of the most profitable feed and hog markets are located.

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Our common stock is included in several Russell indexes: As of June 30, 2008, our common stock was included in the Russell 2000, Russell 3000, Russell Global Index and the Russell Microcap indexes.

A successful entrepreneurial story: 13 years ago (1995), our five founders started a small feed company with less than $10,000 in personal savings. We have since grown our privately held company into a highly profitable, multi-million dollar revenue public company. AgFeed currently benefits from an income tax free environment (hog production), successful M&As, strong synergies between our feed and hog raising segments, a strong balance sheet and our capital strength as a public company. Particularly, we believe we have the following areas of strength:

• Our management members are not only our largest shareholders but also senior industry executives. We have a strong Board of Directors overseeing our growth: Our board members and advisors are senior Wall Street executives and feed/hog industry experts. Our Chief Operating Officer is the former Finance Director of Purina Mills and PIC America, the largest US feed company and the largest breeder hog operator in North America. Our Chairman of Advisory Board is the former CFO of Merrill Lynch and former CEO of E.F. Hutton; Our Chairman of Audit Committee is currently a board member of a Lehman Brothers affiliate; Our industry advisors include the former Chairman of the American Feed Industry Association and the former CEO of the largest US feed company – Purina Mills.
• Favorable market environment - our hog production segment is exempt from all taxes and generates significant cash flow: Approximately 65% of China's annual meat consumption is pork. Lack of steady hog supply in a highly fragmented hog supply market and cultural preference towards daily slaughtered pork over other meats have driven hog prices to multi-year highs. Strong cash flow: hog producers receive fully payment upfront from wholesale buyers.
• We operate over 900 feed distribution stores: Premix feed is a food addictive that helps significantly shorten a hog's natural growth of 12 to 24 months (without using premix) to as short as 5.5 months. Our products consist of proprietarily formulated minerals, vitamins and proteins specifically tailored to address the various growth phases of a hog based on animal science. Licensed under the Chinese Ministry of Agriculture, our products do not contain animal parts or harmful components such as steroids or growth hormones. We distribute our feed products through our 900 plus independently owned retail chain stores as well as wholesale channels. Our extensive product distribution network presents opportunities for any agricultural product distributor that wishes to enter China through us.
• Strong R&D capabilities and outstanding customer support: We believe AgFeed's technical team is among some of the best educated and most experienced in China's animal feed and hog raising industries. We offer customers critically needed technical support in addition to quality products.
• We operate in a large and fast growing market environment: According to the China Feed Industry Association, China will surpass the US as the world's largest animal feed market reaching $50 billion in annual sales by 2010. We are well positioned to continue our growth.
• Our industry reputation, knowledge and capital strength allow us to acquire profitable businesses at low single digit current year earnings multiples: We have successfully acquired and integrated multiple feed and hog farms. Due to our 13 year history and strong reputation, our ability to acquire commercial hog farms at low single digit current year earnings multiples reflects our management efficiency, experience and our focus on execution in a favorable market environment.

At AgFeed, we look forward to continued success with our customers and shareholders.

- Songyan Li, PhD, Chairman, AgFeed Industries, Inc.