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China Organic Executes Milestone Strategic Partnership Agreement with Wukeshu Grain Depot to Further Expand Wholesale Market Penetration.


Company Anticipates Agreement will Contribute an Additional $27 Million in Revenues and in Excess of $8 Million in Earnings Over Next 12 Months

JILIN, China -- China Organic Agriculture, Inc. (OTCBB OTCBB

See OTC Bulletin Board (OTCBB).
:CNOA CNOA California Narcotics Officers Association ), a growth-driven agricultural and products company leading China's organic foods revolution, has announced a strategic partnership agreement with Wukeshu Grain Depot that the Company anticipates will contribute an additional $27 million in revenues with in excess of $8 million in earnings over the next 12 months, subject to currency fluctuations and market price for products. The agreement further validates CNOA's stated strategic initiative to continue to expand revenues and earnings by maximizing capacity and output to meet the growing demand for its brand name products.

According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the agreement, Wukeshu Grain Depot will process an estimated 60,000 tons of green rice grains, which will yield 42,000 tons of wholesale rice products, for CNOA as it continues to meet ever-increasing demand for its well-known ErMaPao brand of high-quality products in the first year. The three-year agreement also calls for production to increase annually by 10% based on the previous year's production.

"China Organic is experiencing a period of unprecedented growth that we believe will continue to create value for our shareholders well into the future," said Jian Lin, Chief Executive Officer of China Organic Agriculture. "This strategic partnership with Wukeshu will help provide the wholesale production capacity that we need to supply our ever-growing stable of customers, including recent new customers such as Suguo and Hualian. This agreement will only help stabilize stabilize

See peg.
 our growth and earnings moving forward."

China Organic is firmly committed to developing a world class agricultural company that applies advanced technological innovations to transform China's rural economy into a 21st Century powerhouse A fourth-generation language from Cognos that was introduced in the late 1970s for midrange computers. It supports both character-oriented, terminal-based applications as well as Windows clients. Applications developed under PowerHouse can be imported into Cognos' Axiant client/server environment. . The Company has already made exceptional progress in rolling up smaller farms in China's Northeastern region to build a more cohesive cohesive,
n the capability to cohere or stick together to form a mass.
 agricultural infrastructure for research and development, farming, manufacturing, distribution and the marketing of organic and other high-quality food products.

Based in China's Chenlai District, Wukeshu is a state-owned wholesale grain depot with a 150,000 square-foot facility that has a storage capacity of more than 200,000 tons. As a condition of the agreement, Wukeshu is responsible for quality control, as well as for storage and packaging, and will process rice for CNOA exclusively. CNOA has agreed to pay Wukeshu for its processing services, which in turn reduces the cost of processing and storage for its ErMaPao products.

About China Organic Agriculture

China Organic Agriculture is among the largest producers of organic rice in China commanding a 40 percent market share. CNOA controls all aspects of the process from seeds to planting and processing, R&D and sales. The proprietary processing factory is 20,000 square meters Noun 1. square meter - a centare is 1/100th of an are
centare, square metre

area unit, square measure - a system of units used to measure areas
 and has an annual production capacity of 30,000 tons. The Company also has an extensive sales network, located in the major cities in China China is a geographical area encompassing multiple territories, under two states. You may be looking for:
  • List of cities in the People's Republic of China
  • List of cities and towns in Hong Kong
.

CNOA, which follows GAAP GAAP

See: Generally Accepted Accounting Principles


GAAP

See generally accepted accounting principles (GAAP).
 accounting principles and is fully SEC compliant, has experienced significant growth since its inception in 2002, and is exempt from federal taxes as an agricultural company in China. CNOA has put solid plans in place to markedly expand revenues and increase shareholder value. The quality of CNOA's products results in the ability to command and receive prices 40% higher than comparables. In the first quarter of 2007 (as of March 31st) the company posted $4.1 million in revenue, up 30 percent from the same period 2006. Gross profit margins Gross profit margin

Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.


gross profit margin

A measure calculated by dividing gross profit by net sales.
 grew to 43.9% yielding net income of $1.72 million or 42% of sales.

CNOA has in excess of 6260 acres dedicated to green and organic rice. The irrigation irrigation, in agriculture, artificial watering of the land. Although used chiefly in regions with annual rainfall of less than 20 in. (51 cm), it is also used in wetter areas to grow certain crops, e.g., rice.  system is fed from the Nen River Nen River
 formerly Nonni River

River, northeastern China. It is the main tributary of the Sungari (Songhua) River. It rises between the Da Hinggan and Xiao Hinggan ranges in northern Heilongjiang province and flows south, forming part of the border between
, one of the last unpolluted rivers in China, and no chemicals or fertilizers are used in the process. The Company's flagship brand, ErMaPao has won several quality awards, holds the highest organic certification Organic certification is a certification process for producers of organic food and other organic agricultural products. In general, any business directly involved in food production can be certified, including seed suppliers, farmers, food processors, retailers and restaurants.  and is the most popular rice brand in the country.

CNOA has the business plan, the depth of management and the capital to realize its mandated goal of becoming the leading organic agriculture company within this explosive sector in China as well as globally within the next five years.

For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/coa.

To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/coa/quote.html.

To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/coa/factsheet.html.

Mission Statement

China Organic Agriculture, Inc. is firmly committed to increasing shareholder value through setting the next generation standard for quality organic food products in China and throughout the world.

Forward-Looking Statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
 

Safe Harbor Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive.
 Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of CNOA could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.
COPYRIGHT 2007 Business Wire
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Publication:Business Wire
Date:Jul 30, 2007
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