Deyu Agriculture Retains CCG Investor Relations

BEIJING, July 6 /PRNewswire-Asia-FirstCall/ -- Deyu Agriculture Corp. (OTC Bulletin Board: ECBI) ("Deyu Agriculture" or the "Company"), an emerging, vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and various grains, today announced that it has retained CCG Investor Relations ("CCG") to design and execute its investor relations campaign.

Headquartered in Beijing, Deyu Agriculture principally operates in Jinzhong City, Shanxi province. The Company is vertically integrated, engaged in seed breeding, cultivation, production, processing, logistics, storage, marketing and distribution, which enables it to remain operationally agile and efficient. Currently, Deyu Agriculture has obtained 20-year, exclusive farming rights to approximately 367 square kilometers (equivalent to 90,600 acres or 550,000 mu) of farmland under agricultural co-operative agreements with the local governments of counties and villages in the Jinzhong region. Although the Company owns neither the title nor the right to use the land, Deyu Agriculture has been granted priority in working to secure purchasing contracts with farmers to ensure reliable, high-quality supply.

While the Company sells partially processed corn in bulk to major agricultural product companies that perform final processing, it also distributes pre-packaged grain products through a network of supermarkets under its own brands "Deyu" and "Shitie". While Deyu Agriculture's current product portfolio focuses on partially processed products, the Company is looking to expand into completely processed and higher-margin products, such as instant food, value-added grain food and organic food. In addition, Deyu Agriculture plans to strengthen its presence in large cities in China, where consumers have higher incomes and are increasingly health and nutrition conscious. As of the end of May, the Company's distribution network included more than 2,500 supermarkets in 10 cities across China.

Studies have shown that grain products contain high levels of vitamin B1, dietary fiber and trace elements, and coarse grains have been shown as beneficial for mitigating diabetes and heart disease. The Chinese Nutrition Society, commissioned by the Ministry of Health in 2007 to formulate its Dietary Guidelines, recommends that adults consume 250 to 400 grams of processed grains and 50 to 100 grams of coarse and whole grains on a daily basis.

The evolution of corn processing has also led to a revolution in corn consumption. In many developed countries, corn is regarded as a "healthy food" or "golden food." In the United States alone, over ten percent of "healthy food" is made with corn or corn by-products. For example, corn oil squeezed from germinated corn contains over 10 types of fatty acids, more than half of which are rich in vitamins A and E. Corn oil is also low in cholesterol and beneficial for mitigating high blood pressure and heart disease.

"Because of their favorable properties, grain and corn-based food is becoming an essential component of the daily diet of many Chinese people. We are increasing our marketing and brand-building efforts in order to position ourselves as a leading supplier of grain and corn products in China. As consumer awareness of the value and benefits of grain and corn continues to expand, we are confident that we will be among the first companies to serve this growing market," said Mr. Jianming Hao, Chief Executive Officer of Deyu Agriculture. "We look forward to working with CCG to communicate information about our business operations and financial performance to investors." "Years of economic growth and improved living standards in China have dramatically changed the dietary components of the Chinese people. With a population that is increasingly conscious of dietary health and nutrition, we believe that grain and corn-based food is set to experience growing demand for many years to come. Deyu Agriculture, with its broad product portfolio and premium-branded grain products, is well positioned to take advantage of this increased demand," said Crocker Coulson, President of CCG Investor Relations. In the three months ended March 31, 2010, Deyu Agriculture generated revenues of $14.4 million, a substantial increase of 110.2% from $6.9 million in the same period in 2009. Net income nearly doubled to $2.6 million from $1.3 million for the same period. In fiscal 2009, revenues were $40.7 million and net income was $7.2 million. Deyu Agriculture has entered into a make-good escrow agreement with investors, whereby approximately 1.9 million shares of the Company's stock are being held as security in the event that the Company does not achieve $11 million in audited net income for the fiscal year 2010 and $15 million in audited net income for the fiscal year 2011.

About Deyu Agriculture Corp.

Deyu Agriculture Corp. ("Deyu Agriculture" or "the Company") is an emerging, vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and various grains. The Company maintains facilities and farmland in Shanxi province, which has a relatively dry climate and wide daily temperature difference between day and night that is ideal for grain cultivation. With a 135-plus day growing season, one of the longest in China, farmland in Shanxi provides a consistent supply of high-quality and high-nutrition crops. The Company is headquartered in Beijing, where it also maintains a marketing center and a product research center.

For more information, contact CCG Investor Relations directly or go to Deyu Agriculture's website at http://www.china-deyu.com .

About CCG Investor Relations

CCG is one of the nation's leading investor relations and strategic communications agencies. In business for more than 30 years, the agency provides a complete range of investor communications and counseling services to nearly 80 clients across multiple capital markets. CCG has been awarded a number of industry honors for its handling of complex investor relations and crisis communications matters. The agency's corporate headquarters is in Los Angeles with offices in New York, San Francisco, Beijing, Shanghai, Frankfurt and Tel Aviv. For further information, contact CCG directly, or visit the Company's web sites at http://www.ccgir.com and http://www.ccgirasia.com .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Deyu Agriculture's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, general economic conditions; geopolitical events and regulatory changes, availability of capital, changes in the agricultural industry, the Company's ability to maintain its competitive position as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Deyu Agriculture does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     David Lethem, Chief Financial Officer
     Deyu Agriculture Corp.
     Tel:   +1-239-940-8889
     Email: [email protected]
     Web:   http://www.china-deyu.com

    Investor Relations Contact:
     John Harmon, Senior Account Manager
     CCG Investor Relations
     Tel:   +1-646-833-3424
     Email: [email protected]
     Web:   http://www.ccgir.com

SOURCE Deyu Agriculture Corp.