Yongye International, Inc. Announces 52% Expansion in Branded Store Network

BEIJING, May 6 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (Nasdaq: YONG), ("Yongye or "the Company") a leading manufacturer, developer and distributor of Shengmingsu brand plant and animal nutrient products in the People's Republic of China (PRC), today announced that the number of independently-owned, Yongye branded stores selling the Company's Shengmingsu products increased 52% over the first three months of 2010 to approximately 13,880 stores from 9,110 stores as of December 31, 2009.

Yongye's branded store network enables the Company to rapidly penetrate rural Chinese markets and further promote strong brand awareness and recognition through marketing and education at the village level. These independently owned stores agree to feature and prominently display Yongye's products inside their stores as well as in storefront messaging visible from the street.

Building on its successful branded store network, the Company plans to continue to rapidly accelerate its expansion into new provinces throughout 2010 making it a national brand. Yongye also plans to continue to increase the number of branded stores in existing markets by expanding its market penetration for its Shengmingsu products. Overall, the Company anticipates having more than 20,000 independent stores in its distribution network by the end of 2010.

"We believe the continued fast growth of our branded store network is a testament to the strength of our Shengmingsu brand, the uniqueness of our sales and marketing model, and the strong local support of our distribution partners," said Mr. Zishen Wu, CEO of Yongye International, Inc. "During the first quarter, we experienced significant growth in the number of new stores joining the Yongye branded store network in provinces outside our traditional markets as well as in our existing markets. This swift penetration of new markets reflects the growing influence of the Shengmingsu brand across China and the success of the Company's marketing campaign outside its traditional top four provinces. The expansion of our network positions Yongye for sustained rapid growth in the years to come."

About Yongye International, Inc.

Yongye International is a Chinese organic nutritional company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye markets two lines of organic nutrient products: a liquid nutrient product which is sprayed on plants and a powder nutrient product which is added to animal feed. Both products are sold under the brand name "Shengmingsu," which means "life essential" in Chinese. The Company's patented and patent pending formulas and proprietary extraction processes allow it to create products that increase crop yields and improve the health of livestock. The Company sells its products to provincial or regional distributors, who then channel those products to a carefully selected network of independently-owned Yongye branded stores in China. For more information, please visit the Company's website at http://www.yongyeintl.com .

Safe Harbor Statement

This press release contains certain statements that may include "forward- looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    Yongye International, Inc.
     Mr. Larry Gilmore-VP of Corporate Strategy
     Phone: +86-10-8232-8866 x8880
     Email: [email protected]

    CCG Investor Relations, Inc.
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915
     Email: [email protected]

     Athan Dounis, Account Manager
     Phone: +1-646-213-1916
     Email: [email protected]

SOURCE Yongye International, Inc.