AgFeed Industries Acquires Five Chinese Hog Farms

NANCHANG, JIANGXI PROVINCE, CHINA, Jan 15 (MARKET
WIRE) --
AgFeed Industries, Inc. (NASDAQ: FEED), a leading premix animal nutrition and
hog producer in China, announced today that it has acquired majority
interests ranging from 55 to 100 percent in five hog farms located in China's
Jiangxi province where the Company's headquarters are located. AgFeed assumed
majorityownership of each of the hog farms with the original owners maintaining
minority
stakes and staying on as operational management. Including its existing
Lushan breeder hog farm, which was acquired in November 2007, AgFeed expects to
achieve total production of approximately 120,000 hogs for 2008 from these six
hog farms.

These acquisitions were completed with the Company's available corporate
funds.
AgFeed acquired the interests in the hog farms for an aggregate of
approximately $5.3 million, with $1.06 million paid at closing and the
remainder payable in two installments due in February and March 2008.
Underthe terms of the transaction documents, AgFeed will lease the underlying
facilities
from the original owners under 10-year lease agreements. The lease
agreements call for AgFeed to pay the original owners rent in the amount of
35 RMB (approximately US$4.75) for each hog sold in exchange for use of the
facilities.

Songyan Li, Ph.D., Chairman of AgFeed, commented: "These acquisitions were
completed at less than a three times projected 2008 forward Price-to-Earnings
ratio. We are executing our growth strategy of developing our hog raising
business
and quickly expanding production capacity to achieve economies-of-scale
through strategic acquisitions. As pork prices remain at current high prices, or
even continue to rise in China, AgFeed is well positioned to benefit greatly
from a favorable hog market environment in China. We see AgFeed's growth trend
continuing."

Junhong Xiong, AgFeed's CEO, commented: "This is another step in AgFeed's
growth
strategy in 2008 to develop both its premix feed and hog raising businesses
through strategic and synergistic acquisitions as well as organic growth.
AgFeed is in a strong position to complete additional hog farm acquisitions
as we have the natural advantage of having supplied premix hog feed to many
commercial hog farms over the last decade. There is a high level of trust
that has developed over the years between AgFeed and many commercial hog farm
owners. Our announced entry into the hog raising industry strengthens our
relationships with them as many of them welcome AgFeed's continued commitment.
This positive attitude has made our hog farm acquisition strategies executable
in a highly cost-and-time-efficient manner. At the current market price of
approximately $220 per
meat hog and net margins of up to 30%, AgFeed plans to pursue additional hog
farmacquisitions in the near future."

Independent Directors and Company Counsel Visit AgFeed's Headquarters

AgFeed's independent board members, Messrs. Arnold Staloff - Chairman of the
Audit Committee and Fredric Rittereiser - independent board member, and
AgFeed's legal counsel, Selig Sacks of Pryor Cashman LLP, visited AgFeed's
operations in China last week. The delegation visited AgFeed's feed production
facilities, feed chain stores and hog farms and participated in the grand
opening ceremony of one of AgFeed's distribution outlets.

About AgFeed Industries, Inc.

AgFeed is a U.S. public company listed on the NASDAQ Global Market.
Throughits operating subsidiaries in China, AgFeed is a market leader in China's
fast
growing premix animal nutrition industry. AgFeed also entered into China's hog
raising industry in 2007. 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. For more information, please log on www.agfeedinc.com

Safe Harbor Statement

All statements in this press release that are not historical are
forward-looking statements made pursuant to the "safe harbor" provisions
ofthe 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
currentexpectations with respect to future events and are subject to risks and
uncertainties that may cause actual results to differ materially from
thosecontemplated. Potential risks and uncertainties include, but are not
limited
to, the risks described in AgFeed's filings with the Securities and Exchange
Commission.

Contact:

Investor Relations:
The Global Consulting Group
Kevin Theiss
Tel: 646-284-9409
Email: ktheiss@hfgcg.com

Company Contact:
AgFeed Industries, Inc.
Mr. Sam Zhou
Corporate Development
Tel: 011-86-13925912908
Email: info@agfeedinc.com

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