China Agri Positioned for 2010 Expansion By Establishing Direct Sales Network and Acquiring a New Product License

NEW YORK, March 1 /PRNewswire-Asia-FirstCall/ -- China Agri-Business, Inc. (OTC Bulletin Board: CHBU) a manufacturer and distributor of organic agricultural application products in China, celebrated the anniversary of its "New Agriculture-Generator" initiative, in Xi'an, China. As of December 31, 2009, the Company had established 103 branded super chain stores, a majority of those stores are located at Shannxi Province (where the company is based) and Hunan Province. In addition, the Company established 49 direct sales stores, which are controlled and managed directly by the Company. The direct sales stores are located in the Shannxi Province. For the year ended December 31, 2009, about one third of the Company's revenues were generated from those super chain stores and direct sales stores.

Liping Deng, President and Chief Executive Officer of China Agri-Business, commented on the Company's outlook for the year 2010, stating, "As an effort to expand our business and offset the influence of weather conditions, we launched a 'New Agriculture - Generator' initiative in the fourth quarter of 2008, which includes the super chain sales partner program and direct sales stores program. The purpose of this campaign is to establish our own sales network by creating a closer relationship with farmers through our super chain and direct sales stores in the rural areas of China in addition to the traditional sales network. We anticipate continuing to focus our efforts on establishing direct sales stores in 2010. From the beginning of the year to today, we have opened about 150 new direct sales stores in Shannxi Province and Hunan Province. Total direct sales stores are over 200 now. We expect that the super chain stores and direct sales stores will generate growth for the Company in 2010."

In addition to the Company's continued market expanding efforts, the Company acquired a new product license to produce potassium and magnesium fertilizer on February 14, 2010. The license cost is approximately $117,000. The estimated cost relating to associated production equipment is approximately $293,000. The Company believes that acquiring licenses to existing products will enable the Company to increase revenues more quickly than by solely relying on developing its own new products. The Company will continue to look for such licensing opportunities in the future.

About China Agri-Business, Inc.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xin Sheng Centennial Agriculture and Technology Co., Ltd. manufactures and sells non-toxic fertilizer, bactericide and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (However, our products themselves do not bear the "AA green food" designation). The green food rating system consists of an "A" rating and a more stringent "AA" rating. The "AA" rating indicates that the crops contain minimal chemical residue from fertilizers.

The Company's two primary product groups are organic fertilizer (Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has a total of five brands and produces more than 50 different applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including potatoes, vegetables, cotton and fruit plants, and orchard trees. The products can be used either alone or to supplement other products. The Company's Xinsheng's manufacturing facilities are located in Xi'an, Shaanxi Province, China.

Safe Harbor and Cautionary Statement

This document contains forward-looking information about the Company's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about the Company's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. Because these forward-looking statements are subject to a number of risks and uncertainties, the Company's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2008 and other documents of the Company files with the United States Securities and Exchange Commission and available at www.sec.gov. The Company assumes no obligation to update any such forward-looking statements.

SOURCE China Agri-Business, Inc.

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