--Exclusive Sales Area Expanded Beyond China and SE Asia to Include Japan and Korea--
TORONTO, ONTARIO -- (Marketwire) -- 06/28/10 -- Hanfeng Evergreen Inc. ('Hanfeng' or the 'Company') (TSX: HF), a leading producer of slow and controlled release fertilizers (SCR) in China, announced today that it has expanded its exclusive sales and distribution agreement (the 'Revised Agreement') with FBSciences, Inc. for its CarbonPower®, a next generation proprietary technology that provides superior nutrient uptake and mobility within agricultural crops. The Revised Agreement extends the exclusive term of the original agreement announced in November 2009 from two years to five years and adds Japan and Korea to the exclusive territory that includes China and southeast Asia. The Revised Agreement also increases the minimum amount of CarbonPower® expected to be shipped in the last three years of the agreement by an average of 275 percent over the base year. For competitive reasons, additional terms and financial metrics of the Revised Agreement were not disclosed.
Hanfeng introduced CarbonPower® in China through extensive field trials in 2008 and 2009. In these field trials, urea coated with CarbonPower® ('CPU') was applied in conjunction with various Hanfeng SCR products. The results demonstrated significant yield increases, with less applications of fertilizer, and enhanced the crop resistance to both drought and severe weather. Since its introduction in China, the Company has sold over 130,000 metric tonnes of CPU.
'We are very pleased to have extended our agreement with Hanfeng, the recognized leader in value-add fertilizers in Asia,' stated Peter Stromberg, CEO of FBSciences. 'Hanfeng has built an exceptional quality brand in China and southeast Asia and their products are trusted by both end users and by the governmental agencies tasked with aiding farmers in enhancing yield and reducing environmental damage. Our product fits nicely in their portfolio and has produced outstanding results in field tests and commercial use. We look forward to continuing our very successful relationship with them.'
'FBSciences' CarbonPower® is a break-through product, and one that we are very pleased to be associated with,' stated Xinduo Yu, President and CEO of Hanfeng. 'We see significant demand for CarbonPower® in all our markets as both a stand alone or blended product. Yield enhancement is one of the most critical issues facing the agriculture industry in Asia, and our growing portfolio of products delivers proven solutions for this issue.'
About FBSciences, Inc.
FBSciences, Inc., is an agricultural technology company committed to helping growers around the world achieve optimal plant health and performance through innovative, scientific principles. Products from FBSciences utilize a revolutionary and proprietary technology that enables superior nutrient uptake and mobility by crops. FBSciences is headquartered in Collierville, Tennessee. For more information on FBSciences, visit www.FBSciences.com.
About Hanfeng Evergreen Inc.
Hanfeng is the largest producer of slow and controlled release fertilizers in China. It was the first company to introduce the concept of slow and controlled release fertilizers into China's agriculture market with its establishment of the first commercial scale production in China. All production facilities are located in prime agricultural regions of China. The Company is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange. www.hanfengevergreen.com
This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Hanfeng's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars except for noted otherwise.
Hanfeng Evergreen Inc.
Chief Financial Officer
Spinnaker Capital Markets Inc.