AgFeed Industries (FEED) Agrees to Buy 4 Commercial Hog Farms in South China; Affirms FY08 Outlook

August 25, 2008 7:34 AM EDT

AgFeed Industries, Inc. (NASDAQ: FEED) today announced that it has reached agreements to acquire 4 producing commercial hog farms in South China. AgFeed expects these acquisitions to close in early September. All of the Company's acquired hog farms are immediately accretive to earnings. AgFeed is also in discussions with multiple other farms as potential acquisition targets.

AgFeed has sufficient cash on hand, a strong balance sheet as well as strong cash flows from operations to fund its current acquisition plans in 2008. In addition to these four farms, AgFeed intends to acquire no less than 5 to 10 additional producing hog farms before the end of 2008, to be funded from current cash flows. All of its hog farm acquisitions are immediately accretive to earnings.

Affirms its FY08 EPS guidance of $1.08-$1.20, versus the consensus of $1.00.

AgFeed Industries, Inc., through its subsidiaries, engages in the research and development, manufacture, marketing, and sale of fodder and blended feed for use in the domestic animal husbandry markets in the People's Republic of China.

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