China Green Agriculture, Inc. Breaks Ground on New R&D Facility

Company Receives Land-Use Right for R&D Expansion in Shaanxi Province

XI'AN, China, Oct. 29 /PRNewswire-Asia-FirstCall/ -- China Green
Agriculture, Inc. (NYSE Amex: CGA; "China Green Agriculture" or "the
Company"),
a leading producer and distributor of humic acid ("HA") based compound
fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic
Acid Product Co., Ltd., today announced that it has broken ground on its new
R&D facility and has received a certificate of Land-Use Right for
approximately 88 acres of land granted by the People's Government and Land &
Resources Bureau of Hu County. This certificate was issued by the PRC
government on August 13, 2009 and delivered to the Company on September 2,
2009. The land use certificate is valid for 50 years, ending August 13, 2059.
"We are pleased to have achieved this milestone within such a brief period
of time since the closing of our public offering on July 24, 2009," stated Mr.
Tao Li, Chairman and CEO of China Green Agriculture. "As previously
announced,
we intend to use a majority of the net proceeds from our recent financing for
our R&D expansion. We are confident that we will achieve all key milestones
in a timely fashion and anticipate that the new R&D facility will be completed
by the second quarter of fiscal year 2011.
China Green Agriculture currently operates a 137,000 square meter R&D
facility (with six intelligent greenhouses over 39 acres), which can simulate
diverse natural environments and allows the platform to experiment and test
new product ideas. With majority of our field testing activities taking place
within the company's advanced greenhouse facilities, the company is able to
effectively manage production and quality control aspects. Expansion of China
Green Agriculture's R&D facility is key to the company's market strategy of
rapid product development and increasing market share for its products.
In addition to the development of new products, R&D is directly involved
in generating profits, which helps to normalize earnings and reduce
seasonality. Many flowers and vegetables produced during the experimentation
and testing process are sold to high-end supermarkets and airline companies,
turning its R&D activities into a profit center. During the last four
quarters, agricultural products contributed 17.9% and 13.6% in the total sales
and gross profit, respectively.
In order to further strengthen its R&D base to support the rapid capacity
expansion, China Green Agriculture recently announced plans to build 12 new
greenhouses over an area of about 88 acres. This is expected to increase the
company's ability to develop new products and could be used to support its
efforts from the existing fertilizer business into cross-selling opportunities
such as pesticides and herbicides.
About China Green Agriculture, Inc.
China Green Agriculture, Inc. produces and distributes humic acid ("HA")
based compound fertilizer through its wholly owned subsidiary, Shaanxi
TechTeam Jinong Humic Acid Product Co., Ltd., ("Jinong"). Jinong produces and
sells over 130 different kinds of fertilizer products per year. All of
Jinong's fertilizer products are certified by the PRC government as green food
production materials, as stated by the China Green Food Research Center.
Jinong's fertilizers are highly concentrated liquids which require an
application of approximately 120 ml per mu per application. Its average end
user has approximately four mu of land (one mu = .165 acres). Jinong also has
the capacity to produce highly concentrated powdered fertilizers. China Green
Agriculture currently markets its fertilizer products to private wholesalers
and retailers of agricultural farm products in 21 provinces, 4 autonomous
regions and 3 municipal cities in the PRC. The leading five provinces which
collectively accounted for 36.4% of the Company's fertilizer revenue for the
year ended June 30, 2009 are Shandong (9.5%), Shaanxi (8.3%), Heilongjiang
(6.5%), Xinjiang (6.5%) and Anhui (5.9%). For more information, visit
http://www.cgagri.com .
Safe Harbor Statement
This press release contains forward-looking statements concerning the
Company's business, products and financial results. The Company's actual
results may differ materially from those anticipated in the forward-looking
statements depending on a number of risk factors including, but not limited
to,
the following: general economic and business conditions, development,
shipment,
market acceptance, additional competition from existing and new competitors,
the impact of competitive products or pricing, changes in technology,
additional financing requirements, development of new products, government
approval processes, technological changes, and various other factors beyond
the Company's control. All forward-looking statements are expressly qualified
in their entirety by this Safe Harbor Statement and the risk factors detailed
in the Company's reports filed with the Securities and Exchange Commission.
China Green Agriculture undertakes no duty to revise or update any forward-
looking statements to reflect events or circumstances after the date of this
release.
For more information, please contact:

In the US:
China Green Agriculture, Inc.
Ms. Ying Yang, Chief Financial Officer
Tel: +1-626-623-2575
Email: yangying@cgagri.com

OR

HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net

In China:

China Green Agriculture, Inc.
Mr. Jonnie Wang, Secretary of Board, Investor Relations Officer
Tel: +86-29-8826-6368
Email: wangxilong@cgagri.com

SOURCE China Green Agriculture, Inc.

In the US at China Green Agriculture, Inc., Ms. Ying Yang, Chief Financial
Officer, +1-626-623-2575, or yangying@cgagri.com, or at HC International,
Inc., Ted Haberfield, Executive VP, +1-760-755-2716, or
thaberfield@hcinternational.net; or in China at China Green Agriculture, Inc.,
Mr. Jonnie Wang, Secretary of Board, Investor Relations Officer,
+86-29-8826-6368, or wangxilong@cgagri.com