China Agritech Signs $7.8 Million Liquid Organic Fertilizer Contract
October 09 2007 - 10:00AM
PR Newswire (US)
BEIJING, Oct. 9 /Xinhua-PRNewswire-FirstCall/ -- China Agritech,
Inc. (OTC Bulletin Board: CAGC) ('China Agritech', the 'Company'),
a leading liquid fertilizer manufacturer in China, announced that
it has signed a contract with Sinochem Fertilizer Co., Ltd.
(Sinochem Fertilizer) to deliver a minimum of 1,000 metric tons of
its liquid organic fertilizer 'Green Vitality' over the next twelve
months. The order is expected to contribute $7.8 million to China
Agritech's revenue over the term of the contract. Sinochem
Fertilizer is the largest fertilizer distributor in China with an
established multi-level distribution network comprised of 17 sales
subsidiaries and 1,600 sales points. The distribution network
covers 26 provinces with first tier distributors in major cities
and second tier distributors in counties and rural areas. China
Agritech and Sinochem Fertilizer began negotiations in July 2007
when China Agritech supplied a small order of fertilizer to
Sinochem Fertilizer for test sales in Hainan and Jiangsu Provinces.
Sinochem Fertilizer experienced strong demand for the organic
liquid fertilizer and subsequently signed a one-year contract with
China Agritech for 1,000 metric tons. 'We are pleased to have
obtained this contract with Sinochem Fertilizer, as we are one of a
handful of liquid organic producers with the capacity to fulfill an
order of this size. We feel that this contract reinforces the
market opportunity for Green Vitality and its effectiveness in
enhancing the yield and quality of a variety of agriculture
products,' commented Mr. Yu Chang, CEO of China Agritech, Inc. 'We
also believe our relationship with Sinochem Fertilizer will
contribute to our revenue growth in the future and increase our
penetration within China.' About China Agritech Inc. China Agritech
is engaged in the development, manufacturing and distribution of
organic liquid compound fertilizers and related products in the
People's Republic of China. The company has developed proprietary
formulas that provide a continuous supply of high-quality
agricultural products while maintaining soil fertility. The company
sells it products to farmers located in twelve provinces of China
including: Heilongjiang, Hebei, Liaoning, Jilin, Shandong, Inner
Mongolia, Henan, Sichuan, Guangdong, Xinjiang, Yunnan and Guizhou.
For more information visit http://www.chinaagritechinc.com/ . Safe
Harbor Statement This press release contains statements that
constitute forward-looking statements. These statements include
descriptions regarding the intent, belief or current expectations
of the Company or its officers with respect to the consolidated
results of operations and financial condition of the Company. These
statements can be recognized by the use of words such as 'expects,'
'plans,' 'will,' 'estimates,' 'projects,' 'intends,' or words of
similar meaning. Such forward-looking statements are not guarantees
of future performance and involve risks and uncertainties, and
actual results may differ from those in the forward-looking
statements as a result of various factors and assumptions. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond the control of the Company) or other
assumptions that may cause actual results or performance to be
materially different from those expressed or implied by such
forward- looking statements such as the inability to protect
proprietary formulas, the price of raw materials, the Company's
ability to fulfill its orders, Sinochem Fertilizer's ability to
sell the Company's products, any liabilities from unknown harmful
effects of the product, and adverse weather conditions. The Company
has no obligation and does not undertake to revise forward-looking
statements to reflect future events or circumstances. For more
information, please contact: CCG Elite Investor Relations Crocker
Coulson, President Tel: +1-310-231-8600 x103 Email: China Agritech,
Inc. Kelviz Lim Kok Siak, VP of Finance Tel: +86-10-5962-1220
Email: DATASOURCE: China Agritech, Inc. CONTACT: Crocker Coulson,
President of CCG Elite Investor Relations, +1-310-231-8600 x103, or
; or Kelviz Lim Kok Siak, VP of Finance of China Agritech, Inc.,
+86-10-5962-1220, or Web Site: http://www.chinaagritechinc.com/
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