Agritech outlook second half of 2009

China Agritech, Inc., a leading national organic fertilizer manufacturer and distributor in China, provided comments on the second half of the 2009 year.

The Chinese government has reported that raw materials prices are gradually declining, which resulted in steadily improving market conditions for compound fertilizers in China. The Company anticipates that lower material costs will generate higher profits on its anticipated revenues.

To further enhance profits, China Agritech plans to launch higher-margined products into the domestic markets in the near future. In April 2009, the Company announced a breakthrough in new high-tech, humic acid-based, organic liquid and powder compound fertilizers. By utilizing the Company’s proprietary nano-honeycomb embedding and microelement deep complexing technologies, new products will have the advantages of being more environmentally friendly and effective with a higher nutrient content than traditional organic fertilizers.

China Agritech continues to focus on improving its cash flow and it anticipates significant improvement in the collection of accounts receivable in the second half of 2009.

Two organic granular fertilizer manufacturing production facilities are now in commercial production with a total annual capacity of 150,000 metric tons. Based on feedback from the Company’s extensive marketing network, several large orders are expected to be concluded during the remainder of 2009 which could fulfill the approximated annual sales target. The new marketing and distribution agreement with Odyssey International is expected to also add to revenues during 2009.

In addition to organic growth, China Agritech is intent on augmenting growth through accretive acquisitions within the Chinese fertilizer industry. Several potential candidates have already been identified.