The effect of the forward split will be to increase the number of shares of common stock outstanding to approximately 17.3 million from the 8.7 million shares outstanding prior to the forward split. Each shareholder of record as of the close of trading on February 1, 2010, will have 2 common shares for every 1 common share previously held.

Mr. Yu Chang, Chief Executive Officer of China Agritech, commented, "We believe the Company's shareholders will benefit from the greater liquidity in the Company's common stock created by the stock split. The success of our strategic plan through the introduction of our new organic granular fertilizers combined with our organic liquid fertilizers, has generated increased financial results and shareholder interest. The greater liquidity may make the stock more attractive for certain institutions and improve our trading characteristics."

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 28 provinces of China.

For more information about the Company, please visit http://www.chinaagritech....

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions, including, but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
     Mr. Gareth Tang
     Chief Financial Officer
     China Agritech, Inc.
     Tel:   +86-10-5962-1220
     Email: gareth@chinaagritech.com

    In the U.S.:
     Mr. Kevin Theiss
     Investor Relations
     Grayling
     Tel:   +1-646-284-9409
     Email: kevin.theiss@grayling.com

The Company successfully implemented its plan to introduce new organic granular fertilizer products during the 2009 second quarter, which not only solidified China Agritech's organic fertilizer branding and geographic penetration in China, but also propelled the sales growth of its classic liquid organic fertilizer. These encouraging results validate China Agritech's earlier decision to complete 200,000 metric tons of granular fertilizer capacity in diversified locations in China, and attract leading partners such as Sinochem and Odyssey Trading to accelerate the Company's growth.

Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech, commented, "We are very pleased to reach this new milestone as our new granular product expansion progresses as we expected. In addition, we are bullish on the prospects for 2010. As a pure-play organic fertilizer producer in the vast Chinese agricultural market, where green products are encouraged by the government, we believe our further growth is sustainable and rapid."

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 28 provinces of China.

For more information about the Company, please visit http://www.chinaagritech... .

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions, including, but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:

    China Agritech, Inc.
     Mr. Gareth Tang
     Chief Financial Officer
     Tel:   +86-10-5962-1220
     Email: gareth@chinaagritech.com

    In the U.S.:

    Grayling
     Mr. Kevin Theiss
     Investor Relations
     Tel:   +1-646-284-9409
     Email: kevin.theiss@us.grayling.com

BEIJING, Nov. 12, 2009 (PRNewswire-Asia-FirstCall) -- China Agritech, Inc. (Nasdaq: CAGC) ("China Agritech", or the "Company"), a leading organic compound fertilizer manufacturer and distributor in the People's Republic of China, today announced its unaudited financial results for the third quarter and nine months ended September 30, 2009.

    Financial Highlights
-- Net revenue increased 66.6% year-over-year to a quarterly record $27
million;
-- Gross profit increased 51.3% year-over-year to $9.6 million;
-- Net income increased 64.9% year-over-year to a quarterly record $5.7
million;
-- Fully diluted earnings per share were $0.81 compared with $0.56 in the
2008 third quarter;
-- Almost 34,000 metric tons of organic granular fertilizer sold during
the quarter;
-- Cash and cash equivalents were $19.0 million with a current ratio of
5.7 to 1 and no long-term liabilities; and
-- Revised 2009 guidance to net revenues $70 million and net income of
$15.6 million

Mr. Yu Chang, Chief Executive Officer of China Agritech, commented, "We are encouraged by the initial results from our strategic actions to expand into the much larger market for organic granular fertilizers and extend our geographic reach into new Chinese provinces. As many Chinese farmers are more familiar with granular than liquid fertilizers, we believe that the bundle of our granular with our liquid fertilizers will continue to drive sales volume. We also anticipate our major distribution relationships in the domestic and foreign markets will add to our growth. The additional capital from Carlyle's investment strengthened our cash position and we are financially well equipped for further expansion. Carlyle will help us integrate our marketing by building marketing and distribution channels so we may more quickly penetrate targeted markets.

"Our 'Green Vitality' compound organic granular fertilizer products are a premium line. Green Vitality is an innovative and versatile organic granular fertilizer which can improve the yields of a large variety of crops. On the production front, we have already seen timely contributions from two of our three new production facilities for organic granular fertilizers, and we expect to have the Xinjiang facility commence commercial production by the end of 2009 which will add to our presence in the western markets of China," Mr. Chang concluded.

Third Quarter 2009 Results

Revenue for the third quarter of 2009 grew by 66.6%, or by $10.8 million, to $27 million, a growth record for any quarter, from third quarter 2008 sales of $16.2 million. Sales of the Company's new organic granular fertilizers represented approximately $7.9 million of the 2009 third quarter sales increase, with liquid organic fertilizer sales approximating a $2.9 million gain. The third quarter of 2009 benefited from the commercial production of organic granular fertilizers that began production in the 2009 second quarter at the new facilities in Anhui province, eastern China, and Harbin in the northern Heilongjiang Province, with a combined 150,000 metric tons of capacity. Granular unit sales in the 2009 third quarter were almost 34,000 metric tons versus approximately 11,000 metric tons in the third quarter of 2008. The increase in revenue from organic liquid sales was due to an increase of almost 28% in its average net sales price.

Gross profit for the third quarter of 2009 increased 51.3%, or by $3.3 million, to approximately $9.6 million from $6.3 million in the third quarter of 2008. Gross margin for the quarter was 35.5% compared with 39.1% in the third quarter of 2008. The decline in the gross margin was primarily due to the relatively higher percent of lower-margin organic granular fertilizers sold in this year's third quarter compared with the Company's product sales mix in the third quarter a year ago. In the third quarter of 2009, organic liquid fertilizer sales generated a gross margin of approximately 47.4% compared with a gross margin of approximately 20% for organic granular fertilizers.

Selling expenses during the third quarter of 2009 were $0.73 million, or 2.7% of revenue, down on a percentage basis from $0.65 million, or 4.0% of revenue in the third quarter of 2008. The increased expense was primarily because of higher commissions related to the increased sales of granular fertilizers for the third quarter of 2009 compared to the corresponding quarter of 2008.

Operating and administrative expenses during the quarter were $1.7 million, or 6.3% of revenue, representing an increase of 109.7% compared with $0.81 million, or 5.0% of revenue, for the same period in 2008. The increase was attributable to the payment of Delaware franchise taxes for 2008 and part of 2009, payment of NASDAQ listing fees, payment of directors' and officers' insurance premiums, an increase in the general provision for doubtful accounts, inclusion of non-recurring advisory and professional fees, and higher executive compensation for the addition of independent directors, a chief operating officer and a chief financial officer in the quarter ended September 30, 2009, whereas there was no such expenses and positions in the period ended September 30, 2008.

Income from operations was approximately $7.2 million, a 46.9% increase from almost $4.9 million in the third quarter of 2008. Operating margin for the 2009 third quarter was 26.5% compared to 30.1% in the third quarter last year. The increase in income from operations and decrease in operating margin were generated by the successful organic granular fertilizer sales and higher gross margin on organic liquid fertilizer sales during the second quarter of 2009, partially offset with higher operating and administrative expenses.

The tax rate in the third quarter of 2009 was 20.5% and was lower than the 24.4% tax rate in the third quarter of 2008. The reduced tax rate is due mainly to a subsidiary that generated net income this quarter, but was exempt from Chinese income taxes.

Net income attributable to China Agritech's common shareholders for the third quarter of 2009 was $5.7 million, up 64.9%, and was the highest net income for any quarter. Net income in the third quarter of 2008 was $3.5 million. Diluted net earnings per share were $0.81 versus $0.56 for the same quarter in 2008. Diluted weighted average shares outstanding for the third quarter of 2009 were 7.0 million compared with diluted weighted average shares outstanding of 6.2 million in the third quarter of 2008.

Nine Month Results

For the first nine months ended September 30, 2009, net revenue increased by 50% to $55.4 million from $36.9 million in the corresponding period of 2008. Gross profit increased 32.8% in the first nine months of 2009 to $21.9 million from approximately $16.5 million in the comparable period one year ago. Gross margin was 39.6% in the first three quarters of 2009 compared with 44.7% in the same period of 2008. The decline in gross margin is mainly due to the greater sales of lower-margin organic granular fertilizers in the 2009 period compared with the sales in the year ago corresponding period. Organic liquid fertilizers generated a gross margin of approximately 49.8% and organic granular fertilizers' gross margin was 20.6% for the first nine months of 2009. Income from operations grew by $4.7 million, or 39.5%, to $16.6 million from $11.9 million in the same period one year ago. Net income attributable to common shareholders for the first nine months of 2009, rose by 63.0% or $4.8 million to $12.4 million, with diluted net earnings per share of $1.87, from $7.6 million, or diluted net earnings per share of $1.23 in the first nine months of 2008.

Financial Condition

As of September 30, 2009, China Agritech had $19.0 million in cash and cash equivalents, no long-term liabilities, $72.3 million in net working capital and a 5.6 to 1 current ratio. Accounts receivable were $46.4 million as net revenue increased by 50.0% in the nine months ended September 30, 2009, due primarily to the introduction of the Company's organic granular fertilizers. Days sales outstanding at September 30, 2009 were 198 days, compared to 245 days in the first three quarters of 2008. Shareholders' equity was $79.6 million at September 30, 2009.

Recent Developments

On September 8, 2009, the Company announced that it expanded a sales and distribution partnership with China's largest fertilizer producer and distributor, Sinochem Fertilizer Co., Ltd. ("Sinochem") for the Company's "Green Vitality" granular fertilizer products. This contract is for the supply of 15,000 tons of Green Vitality granular fertilizer and is worth an estimated value of RMB 44 million (approximately US$6.4 million value of sales). This contract runs through December 2010. The Company will continue to supply Sinochem with "Green Vitality" liquid fertilizer under an existing contract.

On September 15, 2009, the Company announced the completion of construction and equipment installation at its new organic granular fertilizer facility in Xinjiang. This facility adds another 50,000 metric tons of capacity for the production of organic granular fertilizer to the Company's existing 150,000 metric tons of capacity which recently began production in Anhui and Harbin. The Xinjiang facility will provide organic granular fertilizers primarily under the "Green Vitality" brand name to the vast agricultural areas in northwestern China. The Company also produces organic liquid fertilizers at Xinjiang with a capacity of up to 2,000 metric tons. Once commercial production of our products commences in Xinjiang by end 2009, we anticipate that China Agritech's total annual organic fertilizer capacity will consist of 200,000 metric tons of organic granular and 13,000 metric tons of organic liquid fertilizers, with application to a large variety of crops.

On October 20, 2009, the Company announced the signing and closing of a $15 million private placement with Carlyle Asia Growth Partners, the growth capital arm of The Carlyle Group. As a result of the transaction, The Carlyle Group, through its affiliates now holds approximately 16.5% of the issued and outstanding China Agritech common stock.

Other Events

On September 7, 2009, the Company announced a 1 for 4 reverse split of its common stock effective on September 8, 2009. The effect of the reverse split reduced the number of shares of common stock outstanding to approximately 7.0 million from 28.2 million shares.

China Agritech began trading on the NASDAQ Global Market starting on September 21, 2009 under the symbol "CAGC". Company management re-emphasized China Agritech's growth plan through building geographically diversified production facilities, expanding its sales network and introducing innovative product technology.

Business Outlook

The Company is now expecting net revenue for the year 2009 to be approximately $70 million versus the previous guidance of over $60 million. The revised guidance for net income is increased to approximately $15.6 million. The new guidance reflected business seasonality in the fourth quarter and some of the year-end expenses. Diluted earnings per share are now expected to approximate $2.25, based on the current average number of diluted shares outstanding. The new guidance represents almost a 55% increase for net revenues and around a 62% rise for net income over the year 2008 results.

These targets are based on the Company's current views on the operating and market conditions, which are estimates and subject to change.

"In the first nine months of 2009, we have generated over $10 million in positive operating cash flow, as compared with a negative figure in the corresponding period in 2008. With our strong sales growth, our accounts receivable increased also. However, we believe our strengthened accounts receivable risk management has begun to show improvement which will be more evident by the end of the 2009 fourth quarter. Going forward, the increase of granular product sales will help reduce the accounts receivable cycle as granular sales run on shorter payment terms," Mr. Yu Chang concluded.

Conference Call

The Company will host a conference call, to be simultaneously web cast, on Thursday, November 12 at 8:00 a.m. Eastern Standard Time, or 9:00 p.m. Beijing Time.

    To participate, please call the following phone numbers:

United States                       1-866-519-4004

China, Domestic                     800-819-0121-Landline

Hong Kong                           852-2475-0994

Canada                              1-800-407-1908

International Toll Dial-In Number:  656-735-7955

Conference ID # 41129467

A live web cast of the conference call will be available on China Agritech's website at http://www.chinaagritechinc.com . Please visit the website at least 15 minutes early to register for the web cast and download any necessary audio software.

A web cast replay will be available on the Company's website, and the call replay will be available through Thursday, November 19, 2009 at 11:59 p.m. EST. To access the replay, please call the following phone numbers:

    United States Dial-In #:            1-866-214-5335

Canada Dial-In #:                   1-800-301-5423

China North Dial-In #:              10-800-714-0386

China South Dial-In #:              10-800-140-0386

Hong Kong Dial-In #:                800-901-596

International Dial-In #:            +61 2 8235 5000

Conference ID # 41129467

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 28 provinces of China.

For more information about the Company, please visit http://www.chinaagritechinc.com .

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions , including, but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

In China:
Mr. Gareth Tang
Chief Financial Officer
China Agritech, Inc.
Email: gareth@chinaagritech.com

In the U.S.:
Mr. Kevin Theiss
Investor Relations
Grayling
Tel:   +1-646-284-9409
Email: kevin.theiss@us.grayling.com

UNAUDITED CONSOLIDATED INCOME STATEMENTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 and 2008 AND
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 and 2008

THREE MONTHS ENDED       NINE MONTHS ENDED
SEPT. 30,                SEPT. 30,
2009         2008        2009         2008
Net revenue            $27,043,952  $16,236,573 $55,379,939  $36,929,747
Cost of revenue        (17,447,653)  (9,896,393)(33,460,130) (20,429,067)
Gross profit             9,596,299    6,340,180  21,919,809   16,500,680
Operating expenses
Selling expenses          (727,593)    (646,861) (1,758,305)  (1,862,586)
General and
administrative
expenses               (1,694,715)    (808,710) (3,550,228)  (2,732,601)
Total operating
expenses               (2,422,308)  (1,455,571) (5,308,533)  (4,595,187)
Income from operations   7,173,991    4,884,609  16,611,276   11,905,493
Other income (expense)
Interest income              9,065       22,006      15,089       85,902
Exchange gain (loss)           299      127,277      (2,757)     (47,562)
Total other income
(expense)                   9,364      149,283      12,332       38,340
Income before income
taxes                   7,183,355    5,033,892  16,623,608   11,943,833
Provision for income
taxes                  (1,473,260)  (1,225,991) (3,789,496)  (3,375,985)
Net income               5,710,095    3,807,901  12,834,112    8,567,848
Net income attributable
to non-controlling
interest in a subsidiary       --     (345,579)   (481,452)    (990,577)
Net income attributable
to common stockholders  5,710,095    3,462,322  12,352,660    7,577,271
Other comprehensive
income
Foreign currency
translation
adjustment                110,815      158,711     (13,526)   3,273,889
Comprehensive income     5,820,910    3,621,033  12,339,134   10,851,160
Comprehensive income
attributable to
non-controlling
interest in a
subsidiary                     --      (43,610)      8,403     (378,513)
Comprehensive income    $5,820,910   $3,577,423 $12,347,537  $10,472,647
Basic and diluted
weighted average
shares outstanding      7,048,063    6,174,904   6,619,803    6,174,904
Basic and diluted net
earnings per share          $0.81        $0.56       $1.87        $1.23

CHINA AGRITECH, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008

SEPTEMBER       DECEMBER
30, 2009        31, 2008
(Unaudited)      (Audited)
ASSETS
Current Assets
Cash and cash equivalents                $   19,013,822 $  11,952,235
Accounts receivable, net                     46,411,842    34,773,115
Inventories                                  15,191,194     6,452,618
Advances to suppliers                         5,667,032    10,795,357
Prepayments and other receivables             1,908,293     2,484,346
Total Current Assets                         88,192,183    66,457,671
Property and equipment, net                   6,629,315     4,496,045
Deposit for equipment                                --       749,799
Construction in progress                        387,262       961,551

Total Assets                             $   95,208,760 $  72,665,066

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable                         $   11,284,462 $   3,327,281
Accrued expenses and other payables           2,308,092       221,954
Taxes payable                                 2,265,549     1,388,897

Total Current Liabilities                    15,858,103     4,938,132

Stockholders' Equity

Common stock; $0.001 par value,
100,000,000 shares authorized,
7,048,063shares issued and outstanding           7,048        24,700
Additional paid-in capital                   30,579,555    26,148,879
Statutory reserves                            6,629,315    5,425, 407
Accumulated other comprehensive income        5,824,391    5, 837,917
Retained earnings                            36,510,349    25,361,597
Total China Agritech's stockholders'
equity                                      79,550,658    62,798,500
Non-controlling interest in a subsidiary             --     4,928,434
Total stockholders' equity                   79,550,658   67,726,9 34
Total Liabilities and Stockholders'
Equity                                  $   95,208,760 $  72,665,066

CHINA AGRITECH, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008

SEPTEMBER 30,
2009            2008
Cash flows from operating activities:
Net income                              $   12,834,112 $      8,567,850

Adjustments to reconcile net income
to net cash provided (used) in
operating activities:
Stock based compensation                         2,703               --
Depreciation                                   508,312          470,198
Provision for doubtful debts                   452,958               --
(Increase) decrease in current assets:
Accounts receivable                        (12,080,214)     (22,235,689)
Inventories                                 (8,731,639)      (6,146,191)
Advances to suppliers                        5,874,503        7,994,813
Prepayments and other receivables              579,412         (740,955)
Increase (decrease) in current
liabilities:
Accounts payable                             7,950,480        3,256,144
Taxes payable                                  875,900          714,935
Accrued expenses and other payable           1,880,903          171,714
Net cash provided (used) in operating
activities                                 10,147,430       (7,947,183)

Cash flows from investing activities:
Acquisition of 10% interest in Pacific
Dragon                                     (1,000,000)              --
Restricted cash                                     --           11,415
Acquisition of property & equipment         (2,201,642)      (1,299,156)
Construction in progress                       155,780         (877,800)
Net cash used in investing activities       (3,045,862)      (2,165,541)

Cash flows from financing activities:
Net cash provided by financing
activities                                         --               --

Net increase (decrease) in cash and cash
equivalents                                 7,101,568      (10,112,724)

Effect of exchange rate change on cash
and cash equivalents                          (39,981)       3,536,977

Cash and cash equivalents, beginning of
period                                     11,952,235       11,841,221

Cash and cash equivalents, end of
period                                 $   19,013,822 $      5,265,474

Supplemental disclosure of cash flow
information:
Income taxes paid                       $    3,013,389 $      3,362,504

Non-cash Investment and Financing
Activity:
Offset of amounts due to/from
stockholders                           $           -- $        330,032

SOURCE China Agritech, Inc.

Source: PR Newswire (November 12, 2009 - 6:00 AM EST)

-- Second quarter net income climbs 91.2% to $5.6 million, or $0.22 per share

-- Teleconference to Begin at 9:00 a.m. EDT Today

BEIJING, Aug. 17 /PRNewswire-Asia-FirstCall/ -- China Agritech, Inc. (OTC Bulletin Board: CAGC) ('China Agritech', or the 'Company'), a leading national organic fertilizer manufacturer and distributor in China, today announced its unaudited financial results for the second quarter and six months ended June 30, 2009.

    Second Quarter Highlights
    -- Net revenue increased 56.9% year-over-year to $21 million;
    -- Gross profit increased 37.3% year-over-year to $8.9 million;
    -- Net income increased 91.2% year-over-year to $5.6 million;
    -- Fully diluted earnings per share were $0.22 compared with $0.12 in the
       2008 second quarter;
    -- Cash and equivalents were $16.5 million with a current ratio of 5.4 to
       1 and no long-term debt; and
    -- 2009 guidance of $60 million in net revenues and $9.5 million in net
       income confirmed.

Mr. Yu Chang, Chief Executive Officer of China Agritech, commented, 'We are reaping the benefits of our strategic actions to expand into the much larger market for organic granular fertilizers and extend our geographic reach into new Chinese provinces. We are excited with the growth this quarter, especially with the contribution from two of our three planned new production facilities for organic granular fertilizers. We expect the third facility will be completed by the end of 2009. We also anticipate additional sales from our major distribution relationships in the domestic and foreign markets in the second half of 2009.'

Revenue for the second quarter of 2009 grew by 56.9%, or by $7.6 million, to $21 million, the highest sales for any quarter, from $13.4 million in the second quarter of 2008. Sales of the Company's new organic granular fertilizers represented almost $7.4 million of the sales gain in the second quarter of 2009. During the second quarter of 2009, commercial production of organic fertilizers was initiated at the Company's new facilities at Anhui province in eastern China and Harbin in the Heilongjiang Province in northern China, representing a combined 150,000 metric tons of production capacity.

Gross profit for the second quarter of 2009 increased 37.3%, or by $2.4 million, to approximately $9.0 million from $6.5 million in the second quarter of 2008. Gross margin for the quarter was 42.7% compared with 48.8% in the second quarter of 2008. The decline in the gross margin was primarily due to the sales of relatively lower-margin organic granular fertilizers in this year's second quarter compared with the Company's organic all-liquid fertilizers sales in the second quarter a year ago. In the second quarter of 2009, organic liquid fertilizer sales generated a gross margin of approximately 53% compared with a gross margin of approximately 21% for organic granular fertilizers.

Selling expenses during the second quarter of 2009 were $0.63 million, or 3.0% of revenue, down from $0.51 million, or 3.8% of revenue in the second quarter of 2008. The decline of the selling expenses over revenue was mainly due to our effective cost control measures including a more targeted advertisement and promotion, lower travel accommodation standard and other sales related fix-cost reduction.

Operating and administrative expenses during the quarter were $0.87 million, or 4.1% of revenue, representing a 17% reduction compared with $1.05 million, or 7.8% of revenue, for the same period in 2008. The decrease was primarily due to senior management's voluntary salary cut, lower travel accommodation standard, and the reduction in non-recurring legal and professional consulting fees in connection with compliance for U.S. securities laws.

Income from operations was approximately $7.5 million, a 50.2% increase from almost $5.0 million in the second quarter of 2008. Operating margin for the second quarter of 2009 was 35.5% compared to 37.1% in the second quarter last year. The increase in income from operations was generated by the success of the organic granular fertilizer sales and higher gross margin on organic liquid fertilizer sales during the second quarter of 2009, combined with lower operating and administrative expenses.

Income taxes for the three month ended June 30, 2009 rose to $1.6 million from $1.4 million in the similar quarter in 2008. However, the tax rate in the second quarter of 2009 was 21.5% and was lower than the 29.9% tax rate in the year ago period. The reduced tax rate is due mainly to a subsidiary that generated net income this quarter, but was exempt from Chinese income taxes.

Net income attributable to China Agritech's common shareholders for the second quarter of 2009 was $5.6 million, up 91.2% and was the highest net income for any quarter. Net income in the second quarter of 2008 was $2.9 million. Diluted net earnings per share were $0.22 versus $0.12 for the same period in 2008. Diluted weighted average shares outstanding for the second quarter of 2009 were 25.3 million compared with diluted weighted average shares outstanding of 24.7 million in the second quarter of 2008.

Six Month Results

For the first-half year ended June 30, 2009, net revenue increased by 36.9% to $28.3 million from $20.7 million in the corresponding period of 2008. Gross profit increased 21.3% in the first six months of 2009 to $12.3 million from approximately $10.2 million in the comparable period one year ago. Gross margin was 43.5% in the first two quarters of 2009 compared with 49.1% in the same period of 2008. The decline in gross margin is mainly due to the sales of lower-margin organic granular fertilizers in the 2009 period compared with the organic liquid fertilizers that comprised all the sales in the year ago corresponding period. Organic liquid fertilizers generated a gross margin of approximately 53% for the first six months of 2009. Income from operations grew by $2.4 million, or 34.4%, to $9.4 million from $7.0 million in the same period one year ago. Net income for the first six months of 2009, rose by 61.4% or $2.5 million to $6.6 million, with diluted net earnings per share of $0.27, from $4.1 million, or diluted net earnings per share of $0.17 in the first half of 2008.

Financial Condition

As of June 30, 2009, China Agritech had $16.5 million in cash and cash equivalents, no long-term debt, and $66.5 million in net working capital. Accounts receivable grew to $43.7 million as net revenue increased by 36.9% in the six months ended June 30, 2009, due primarily to the introduction of the Company's organic granular fertilizers. Days sales outstanding at June 30, 2009 was 187 days, compared to 196 days in the second quarter of 2008. Shareholders' equity was $73.7 million, or $2.62 per share at June 30, 2009.

    Recent Events
    On June 15, 2009, the Company announced the following:

    -- The Chinese government reported that raw materials prices are gradually
       declining and the Company anticipates that 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. By
       utilizing the Company's breakthrough and proprietary nano-honeycomb
       embedding and microelement deep complexing technologies, new products
       will be more environmentally friendly and effective 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.
    -- The new marketing and distribution agreement with Odyssey International
       is expected to also add to revenues during 2009.

During the quarter, holders of a majority of the voting securities of the Company and the Board of Directors, approved an amendment to the Company's Amended and Restated Certificate of Incorporation to effect a reverse split of the Company's common stock, on the basis of one share for every four outstanding shares.

On May 5, 2009, the Company announced it had appointed Ms. Lingxiao Dai as VP of Finance. Ms. Dai was most recently the CFO of the American Yellowstone Power Co., Ltd.'s branch in China.

Business Outlook

The Company has full confidence that the projected net revenue of approximately $60 million and net income attributable to the common stockholders of $9.5 million for the fiscal 2009 year will definitely be exceeded. The company is projecting the production of 20,000 tons of granular organic fertilizers in the third quarter of 2009.

These targets are based on the Company's current views on the operating and market conditions, which are estimates and subject to change.

'With our sales growth, our account receivable increased accordingly. However, our account receivable risk management has been strengthened. We have implemented the following measures to expedite collections: more stringent credit check on new customers, contraction of new account receivables down to 6 months, and assignment to sales staff with collection responsibility tied to penalty policy. These measures have improved our outstanding account quality and reduced actual bad debt occurrence by 0.5%. Our new account receivable management program was prepared in the 1st quarter, implemented in the second quarter, and expected to produce good results in the fourth quarter of 2009 and full year 2010,' commented Mr. Yu Chang.

'Also, we pay special attention to operating cash-flow. As we are accelerating collections, we also continue to honor credit terms to maintain relationships with good customers. In the first half of 2009, we have generated over 8 million dollars in operating cash-flow, as compared to negative figure in the corresponding period in 2008,' Mr. Chang concluded.

Conference Call

The Company will host a conference call today, to be simultaneously web cast, at 9:00 a.m. Eastern Daylight Time, or 9:00 p.m. Beijing Time. To participate, please call the following phone numbers:

     United States                       1-866-519-4004
     China, Domestic                     800-819-0121-Landline
     Hong Kong                           800-933-053
     Canada                              1-800-407-1908
     International Toll Dial-In Number   656-735-7955

     Conference ID # 25520700

A live web cast of the conference call will be available on China Agritech's website at http://www.chinaagritech... . Please visit the website at least 15 minutes early to register for the web cast and download any necessary audio software. A web cast replay will be available on the Company's website, and the call replay will be available through Monday, August 24, 2009 at 11:59 p.m. EDT. To access the replay, please call the following phone numbers:

     United States Dial-In:          1-866-214-5335
     Canada Dial-In:                 1-800-301-5423
     China North Dial-In:            10-800-714-0386
     China South Dial-In:            10-800-140-0386
     Hong Kong Dial-In:              800-901-596
     International Dial-In:          +61-2-8235-5000

     Conference ID # 25520700

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritech... .

Safe Harbor Statement

This release may contain certain 'forward-looking statements' relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as 'believes,' 'expects,' 'anticipates,' 'estimates' or similar expressions, including, but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, ability to produce and sell organic granular products in targeted markets, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
     Mr. Gareth Tang
     Chief Financial Officer
     China Agritech, Inc.
     Tel:   +86-10-5962-1220
     Email: gareth@chinaagritech.com

    In the U.S.:
     Mr. Kevin Theiss / Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9409
     Email: kevin.theiss@us.grayling.com
            valentine.ding@us.grayling.com


                   UNAUDITED CONSOLIDATED INCOME STATEMENTS
        FOR THE THREE MONTHS ENDED JUNE 30, 2009 and 2008 AND FOR THE
                   SIX MONTHS ENDED JUNE 30, 2009 and 2008

                         THREE MONTHS ENDED JUNE 30,  SIX MONTHS ENDED JUNE 30,
                              2009           2008         2009        2008

    Net revenue           $20,988,611    $13,376,091 $28,335,987  $20,693,174
    Cost of revenue       (12,033,792)    (6,851,668)(16,012,477) (10,532,674)
    Gross profit            8,954,819      6,524,423  12,323,510   10,160,500
    Operating expenses
    Selling expenses         (624,993)      (509,136) (1,030,712)  (1,215,725)
    General and
     administrative
     expenses                (871,838)    (1,050,336) (1,855,513)  (1,923,891)
      Total operating
       expenses            (1,496,831)    (1,559,472) (2,886,225)  (3,139,616)
    Income from
     operations             7,457,988      4,964,951   9,437,285    7,020,884
    Other income
     (expense)
    Interest income             3,451          2,223       6,024       63,896
    Exchange gain (loss)       (2,609)      (180,066)     (3,056)    (174,839)
    Total other income
     (expense)                    842       (177,843)      2,968     (110,943)
    Income before income
     taxes                  7,458,830      4,787,108   9,440,253    6,909,941
    Provision for income
     taxes                 (1,601,958)    (1,432,715) (2,316,236)  (2,149,994)
    Net income              5,856,872      3,354,393   7,124,017    4,759,947
    Net income
     attributable to
     non-controlling
     interest in a
     subsidiary              (267,169)      (429,814)   (481,452)    (644,998)
    Net income
     attributable to
     China Agritech's
     common stockholders    5,589,703      2,924,579   6,642,565    4,114,949
    Other comprehensive
     income
    Foreign currency
     translation
     adjustment               (22,528)     1,796,515    (124,341)   3,115,178
    Comprehensive income    5,567,175      4,721,094   6,518,224    7,230,127
    Comprehensive income
     attributable to
     non-controlling
     interest in a
     subsidiary                (8,814)      (220,242)      8,403     (422,123)
    Comprehensive income   $5,558,361     $4,500,852  $6,526,627   $6,808,004
    Basic and diluted
     weighted average
     shares outstanding    25,313,241     24,699,615  25,008,123   24,699,615
    Basic and diluted
     net earnings per
     share                      $0.22          $0.12       $0.27        $0.17



          UNAUDITED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2009
                            AND DECEMBER 31, 2008

                                               JUNE 30, 2009 DECEMBER 31, 2008
                      ASSETS                                      (Audited)
    Current Assets
    Cash and cash equivalents                   $16,515,404      $11,952,235
    Accounts receivable, net                     43,657,689       34,773,115
    Inventories                                  11,407,386        6,452,618
    Advances to suppliers                         7,932,329       10,795,357
                                                  2,217,631
    Prepayments and other receivables                              2,484,346
    Total Current Assets                         81,730,439       66,457,671
    Property and equipment, net                   6,357,024        4,496,045
    Deposit for equipment                                --          749,799
    Construction in progress                        829,257          961,551

    Total Assets                                $88,916,720      $72,665,066

         LIABILITIES AND STOCKHOLDERS'S EQUITY

    Current Liabilities
    Accounts payable                            $10,719,321       $3,327,281
    Accrued expenses and other payables           2,042,611          221,954
    Taxes payable                                 2,425,039        1,388,897

    Total Current Liabilities                    15,186,971        4,938,132

    Stockholders' Equity
    China Agritech's stockholders'
     equity
    Common stocks; $0.001 par value,
    28,189,615 shares issued and                     28,190           24,700
    Additional paid in capital                   30,558,413       26,148,879
    Statutory reserves                            6,072,132        5,425,407
    Accumulated other comprehensive               5,713,576        5,837,917
    Retained earnings                            31,357,438       25,361,597
    Total China Agritech's
     stockholders'                               73,729,749       62,798,500
    Non-controlling interest in a                        --        4,928,434
    Total shareholders' equity                   73,729,749       67,726,934
    Total Liabilities and Stockholders'         $88,916,720      $72,665,066



               UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR SIX MONTHS ENDED JUNE 30, 2009 AND 2008

                                                         JUNE 30,
                                                 2009                2008
    Cash flows from operating
     activities:
        Net income                            $7,124,017          $4,759,947
        Adjustments to reconcile
         net income to net cash
         provided (used) in
         operating activities:
         Stock based compensation                  2,703                  --
         Depreciation                            320,109             325,033
         (Increase) decrease in current
          assets:
          Accounts receivable                  (8,937,538)        (6,937,145)
          Inventories                          (4,967,706)        (4.489,150)
          Advances to suppliers                 3,601,066          5,855,985
          Prepayments and other
           receivables                            276,024           (368,677)
         Increase (decrease) in current
          liabilities:
          Accounts payable                      7,467,145            223,689
          Taxes payable                         1,038,862            148,219
          Accrued expenses and other
           payable                              2,114,634           (241,714)
    Net cash provided (used) in
     operating activities                       8,039,316           (723,813)

    Cash flows from investing
     activities:
         Acquisition of 10% interest
          in Pacific Dragon                      (1,000,000)              --
         Acquisition of property &
          equipment                              (2,200,669)        (363,305)
         Construction in progress                   163,161       (1,794,062)
    Net cash used in investing
     activities                                  (3,037,508)      (2,157,367)

    Cash flows from financing
     activities:
         Net cash provided by financing
          activities                                     --               --
    Net increase (decrease) in
     cash and cash equivalents                    5,001,808       (2,881,180)

    Effect of exchange rate change
     on cash and cash equivalents                  (438,639)      (1,583,098)

    Cash and cash equivalents,
     beginning of period                         11,952,235       11,852,636

    Cash and cash equivalents, end
     of period                                  $16,515,404       $7,388,358

    Supplement disclosure of cash
     flow information:
    Income taxes paid                            $1,280,094       $1,837,906

    Non-cash Investment and
     Financing Activity:
    Offset of amounts due to/from
     stockholders                                       $--         $330,032

SOURCE China Agritech, Inc.

Source: PR Newswire (August 17, 2009 - 8:37 AM EDT)

Harbin is one of China's agricultural centers noted for its rich, black soil, and the City of Harbin is the provincial capital and one of China's largest cities. The capacity of the Harbin operation is 50,000 metric tons of organic granular fertilizer and it adds to the 100,000 metric tons of capacity of organic granular fertilizer which recently began production in Anhui. The Anhui facility provides organic fertilizers to the agricultural areas primarily in central and southern China. The Company also produces organic liquid fertilizers at Harbin with a capacity of up to 5,000 metric tons. For the 2009 year, sales from the Harbin facility are expected to reach between 20,000 metric tons and 30,000 metric tons of organic granular fertilizer.

Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech, commented, "With the Harbin production now in operation, we are much closer to reaching our goal of developing capacity for 200,000 metric tons to penetrate the organic granular fertilizer market, which is a larger market than liquid fertilizers in China. The Chinese government is taking steps to promote the use of organic fertilizers in its 'Green Food' movement and it is also increasing farmers' income through subsidies and price supports. With our newly added capacity, we can offer farmers in China a wider variety of organic fertilizers to meet their needs to improve crop yield and health."

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritech... .

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions, including, but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, ability to produce and sell organic granular products in targeted markets, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
     Mr. Gareth Tang
     Chief Financial Officer
     China Agritech, Inc.
     Tel:   +86-10-5962-1220
     Email: gareth@chinaagritech.com

    In the U.S.:
     Mr. Kevin Theiss / Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9409
     Email: kevin.theiss@us.grayling.com
            valentine.ding@us.grayling.com

BEIJING, May 14 /PRNewswire-Asia-FirstCall/ -- China Agritech, Inc. (OTC Bulletin Board: CAGC.OB) ("China Agritech", or the "Company"), a leading national organic fertilizer manufacturer and distributor in China, today announced that it will report the financial results for the first quarter ended March 31, 2009, after the market close on Thursday, May 14, 2009.

The Company will host a conference call, to be simultaneously Webcast, on Friday, May 15, 2009 at 9:00 a.m. Eastern Daylight Time, or 9:00 p.m. Beijing Time.

    To participate, please call the following phone numbers:

    United States:                     1-866-519-4004
    China, Domestic:                   800-819-0121-Landline
    Hong Kong:                         800-933-053
    Canada:                            1-800-407-1908
    International Toll Dial-In Number: 656-735-7955
    Conference ID # 10026006

A live Webcast of the conference call will be available on China Agritech's Website at http://www.chinaagritech... . Please visit the Website at least 15 minutes early to register for the Webcast and download any necessary audio software.

A webcast replay will be available on the Company's website, and the call replay will be available through Friday, May 22, 2009 at 11:59 p.m. EDT. To access the replay, please call the following phone numbers:

    United States Dial-In #: 1-866-214-5335
    Canada Dial-In #:        1-800-301-5423
    China North Dial-In #:   10-800-714-0386
    China South Dial-In #:   10-800-140-0386
    Hong Kong Dial-In #:     800-901-596
    International Dial-In #: +61 2 8235 5000
    Conference ID # 10026006

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritech... .

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions , including, but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
     Mr. Gareth Tang
     Chief Financial Officer
     China Agritech, Inc.
     Tel:   +86-10-5962-1220
     Email: gareth@chinaagritech.com

    In the U.S.:
     Mr. Kevin Theiss / Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9409
     Email: kevin.theiss@us.grayling.com
            valentine.ding@us.grayling.com

Ms. Dai was most recently the Chief Financial Officer of the American Yellowstone Power Co., Ltd.'s branch in China since June 2006. Her responsibilities included business evaluation, financial plans, appraisals, capital projects and investments. Prior to that, she was the Dean of the Business Department of Beijing Huang Pu University and before that she was the Dean of the Business Department at Beijing - U.S.A. College of English. Ms. Dai was also an Adjunct Professor of Accounting at York College, City University of New York. She has held other accounting positions in private enterprise and government positions.

Ms. Dai received a Bachelor of Business Administration in Accounting in 1993 and a Master of Science in Taxation in 1996, both from Baruch College in New York City. She also attended the Economics and Management Institute of Beijing University of Technology. She is a member of the Accounting Society and the Chinese Business Association in the U.S.

Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech, commented, "We are enthusiastic about having Ms. Lingxiao Dai join us with her accounting and management experience to assist us in our business. Her accounting and business experience in the U.S. will be important in helping us with U.S. GAAP, and strengthening internal financial controls, Sarbanes-Oxley and Section 404 reporting. We also wish to thank Kelviz for his past contributions to our success and wish him well for the future."

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritechinc.com .

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions, including, but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
     Mr. Gareth Tang
     Chief Financial Officer
     China Agritech, Inc.
     Tel:   +86-10-5962-1220
     Email: gareth@chinaagritech.com

    In the U.S.:
     Mr. Kevin Theiss / Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9409
     Email: ktheiss@hfgcg.com
            vding@hfgcg.com

Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech, commented, "We have achieved a breakthrough in the area of research on the compound structure of humic acid. We have already incorporated this new breakthrough technology in our new products. We have combined innovation and technology in our new liquid and powder products utilizing nano-honeycomb embedding technology and microelement deep complexing, which makes them more environmentally friendly and effective with a higher content of nutrients than traditional organic fertilizers. These new breakthrough products for China Agritech highlight the capabilities of our R & D team."

"The new products are expected to be launched this quarter and will be distributed nationally using the Company's extensive domestic sales network to contribute to sales and profits in the next few quarters."

"The certification criteria for new fertilizers is evolving and becoming more stringent in China. The registration of our new products with these high-tech contents, demonstrates we have the knowledge and skill to develop additional value-added, proprietary products to address the needs of the marketplace and capture market share. We have other unique products in the R & D pipeline and we look forward to announcing them in the future," Mr. Chang concluded.

The Company currently has four major product lines and is about to begin commercial production of its new organic granular product. The current fertilizer products target specific crops and are capable of increasing crop yield by as much as 30%. These new products will add greater diversity to the Company's product lines that are sold to farmers to improve the yield and the health of their crops.

Humic acid is a key ingredient as it combines with other elements to enhance their bioavailability. Humic acid is derived from weathered coal which is environmentally superior to chemical fertilizers, and it is inexpensive and plentiful in China.

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacturing and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritechinc.com .

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions regarding statements, including, but not limited to, the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
     Mr. Gareth Tang
     Chief Financial Officer
     China Agritech, Inc.
     Tel:   +86-10-5962-1220
     Email: gareth@chinaagritech.com

    In the U.S.:
     Mr. Kevin Theiss / Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9409
     Email: ktheiss@hfgcg.com
            vding@hfgcg.com

As a part of the cost control measures, the Company is also reducing the standard of senior management's travel expenses, in particular of business class travel and lodging.

Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech, commented, "Our new program aims to control our expenses, improve business efficiency, and provide greater financial flexibility. We, senior management, will start the changes with ourselves and look forward to setting a role model for all of our employees to concentrate on building a stronger corporate culture and long-term sustainable shareholder value. Salesmen are not affected by the salary reduction and no layoffs are planned for 2009."

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacturing and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritechinc.com .

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes", "expects" or similar expressions regarding statements, including, but not limited to, the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
     Mr. Kelviz Lim Kok Siak
     Investor Relations
     China Agritech, Inc.
     Tel:   +86-10-5962-1220
     Email: kelviz@chinaagritech.com

    In the U.S.:
     Mr. Kevin Theiss / Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9409
     Email: ktheiss@hfgcg.com
            vding@hfgcg.com

    Financial Highlights
    -- 2008 net sales were $45.2 million compared with $38.0 million in 2007
    -- Gross margin was 45.0% compared with 50.2% in 2007
    -- 2008 net income was $8.6 million, or diluted EPS of $0.35, compared
       with $8.5 million, or diluted EPS of $0.39 in 2007
    -- Cash as of December 31, 2008 was $12.0 million
    -- Net working capital as of December 31, 2008 was $61.5 million
    -- No bank debt as of December 31, 2008
    -- Shareholders' equity as of December 31, 2008 was $62.8 million compared
       with $50.8 million as of December 31, 2007

"2008 marked a strategic move in our organic compound fertilizer product," Mr. Yu Chang, Chairman, President and CEO of China Agritech, said. "As a market leader in China's liquid organic fertilizer business, we launched our granular fertilizer products, which broaden what we offer to help farmers increase crop yields and preserve the fertility of the soil. In addition, we believe granular organic fertilizers will help us maintain a market-leading position within organic fertilizers because they present a much bigger market for us than liquid fertilizers."

Mr. Chang continued, "With the completion of our 100,000-ton-per-year granular plant in Anhui this month, I am pleased we are close to fulfilling our strategic repositioning in the organic fertilizer market. With our national sales network and our strategic production locations in Northeast, Eastern and Western China, we can now market our expanded line of organic fertilizer products in China's big agricultural provinces. We also believe we are well-positioned to benefit from the recent increase in the Chinese government's agricultural subsidies and increased crop reserves to help increase farmers' income. Further, local governments are supporting the growing use of organic fertilizers, which surpass chemical fertilizers in safety, efficacy and environmental friendliness. We believe that these policies supported by the Chinese government will continue to be favorable to us as the Chinese government continues to seek ways to increase farmers' income and encourages the growth of diversified crops, especially organic food. Lastly, as our new facility in Anhui is close to commercial launch, we expect granular fertilizers sales to ramp up in 2009."

Fourth Quarter 2008 Results

For the fourth quarter of 2008, the Company recorded net sales of $7.2 million compared with $7.9 million in the fourth quarter of 2007. Sales are seasonal, with the fourth quarter historically experiencing weak demand. Net sales in the 2008 fourth quarter were also affected by a cumulative accounting reclassification that turned marketing rebates from selling expenses into sales discounts to net off the Company's sales. Also, a greater sales discount was offered to encourage payment during the fourth quarter. Excluding the impact of the reclassification and higher discount, net sales in the 2008 fourth quarter would have approximated the sales in the same quarter in 2007.

Gross profit was $2.7 million compared with $2.6 million in the fourth quarter of 2007. Gross margin was 37.7% compared with 33.1% in the fourth quarter of 2007.

Selling expenses were negative $646,822, compared with negative $505,612 in the fourth quarter of 2007. The negative selling expenses resulted from the change in the accounting treatment mentioned above.

General and administrative expenses were $1.6 million compared with $670,000 in the fourth quarter of 2007. The increase was primarily due to one- time, non-recurring professional fees related to the acquisition of the 10% interest in Pacific Dragon Fertilizer Limited, higher administrative fees related to the Company establishing new sales regions with associated expenses related to new plant construction, the cost of SOX compliance, provision for doubtful accounts, technical consultation and testing for new products, and the hiring of the new CFO and the appointment of three new independent directors in the fourth quarter of 2008.

Operating income was $1.8 million compared with $2.5 million in the fourth quarter of 2007. The decrease was primarily attributable to the higher general and administrative expenses.

The effective tax rate was 38.0% compared with 35.8% in the fourth quarter of 2007 due to the relatively higher profit contribution and tax liability from the Company's only tax-paying subsidiary and due to a net operating loss in other tax jurisdictions where no benefit was realized.

Net income was $1.1 million compared with $1.5 million in the fourth quarter of 2007. Diluted EPS was $0.04 compared with $0.06 in the fourth quarter of 2008.

Full Year 2008 Results

For the year 2008, net sales grew 19% to $45.2 million from $38.0 million in 2007. The sales increase was primarily generated by the planned expansion into new geographic territories, particularly the southern and central regions of China, as well as sales of the newly launched organic granular fertilizers during the 2008 third quarter from an outsourced supplier.

Gross profit was $20.4 million compared with $19.1 million in 2007. The gross margin was 45.0% compared with 50.2% in 2007. The gross margin decline was primarily due to higher raw material prices, a change in product mix due to sales of lower-margin granular fertilizers in the third quarter of 2008.

Total operating expenses were $6.6 million compared with $4.1 million in 2007. Our general and administrative expenses were $4.3 million for the year ended December 31, 2008, as compared to $2.4 million for the year ended December 31, 2007. Our operating and administrative expenses consist primarily of rental expenses, salaries, business development, depreciation and travel expenses, and legal and professional expenses. The increase was primarily attributable to higher investment in marketing as the Company penetrated new sales regions and had related new plant construction, one time non-recurring professional fees related to the acquisition of the 10% interest in Pacific Dragon Fertilizer Limited, higher transportation costs as a result of an increase in fuel prices, the cost of SOX compliance, provision for doubtful accounts, technical consultation and testing for new products, the hiring of the new CFO and the appointment of three independent directors to strengthen corporate governance of the Company.

Operating income in 2008 was $13.7 million compared with $14.9 million in 2007. The decline was due to lower gross profit combined with the higher operating expenses mentioned above.

The effective tax rate was 29.7% compared with 35.9% in 2007. The improvement was due to the change in Chinese tax laws resulting in a decrease in the corporate tax rate from 33% to 25%, which took effect on January 1, 2008.

Net income was $8.6 million in 2008 compared with $8.5 million in 2007. Diluted EPS was $0.35 compared with $0.39 in 2007, with 12.6% greater number of shares outstanding as of December 31, 2008 compared with the number of shares outstanding as of December 31, 2007.

As of December 31, 2008, the Company had cash and cash equivalents of $12.0 million compared with $11.8 million at the end of 2007. The current ratio was approximately 13.5 to 1 with no long-term liabilities at the 2008 year end. Net working capital was $61.5 million compared with $50.6 million at the end of 2007. Total shareholders' equity was $62.8 million compared with $50.9 million in 2007.

As of December 31, 2008, the Company had total diluted shares outstanding of approximately 24.7 million compared with 21.9 million at the end of 2007 due to the additional 5.6 million shares issued in the 2007 private placement which raised approximately $15 million.

Mr. Chang said, "For 2009, China Agritech will focus on generating greater positive cash flow and has initiated new credit evaluation procedures and greater payment collection efforts. Additionally, we have established shorter payment terms with our granular customers than our liquid customers, which can also help to improve our overall accounts receivable. Management is closely monitoring expenses and has already initiated a salary-and-hiring freeze to improve profits and preserve cash. Lastly, we are considering incentive programs based on increasing shareholder value to reward performance, and to align management's and shareholders' interests."

Operational Highlights

On February 17, 2009, the Company announced that its wholly owned subsidiary, Tailong Holding Company Limited ("Tailong"), signed definitive agreements to purchase the remaining 10% equity interest in Pacific Dragon Fertilizer Co., Ltd. ("Pacific Dragon") from Yinlong Industrial Co., Ltd. The total consideration was $7.98 million, as determined by the accounting firm, KPMG New York, using the fair-value evaluation method. The transaction is expected to increase the Company's 2009 after-tax earnings by approximately $0.05 per share. The Company has just received the necessary approval from the Ministry of Commerce of the People's Republic of China and expects to obtain the business license to complete this acquisition in the near future. The transaction is expected to close in early April 2009.

On March 13, 2009, Mr. Ming Fang Zhu became the Company's Chief Operating Officer. He joined Beijing Agritech Fertilizer Co., Ltd., a wholly owned subsidiary of the Company, in January 2006 as VP of Strategic Development and he became President in April 2007 until March 2009. Prior to Agritech, Mr. Zhu held senior management positions in a number of companies in China. Mr. Zhu holds a bachelor's degree in physics, a master's degree in economics, as well as a law degree. He is also is a state-certified Economist in China.

On March 16, 2009, the Company announced it had completed the construction and testing of its first facility for granular organic compound fertilizers in China. Located in Anhui Province, the facility is expected to begin production in April 2009. The new granular production line has a designed annual production capacity of 100,000 tons. We obtained the production license and fertilizer registration from the local government in Anhui Province. The Beijing facility, which the company initially built for granular manufacturing, will now be converted into an R&D and core ingredients supply center.

Other Events

Between March 11,2009 and March 13, 2009, Mr. Yu Chang, Chairman, President and CEO of the Company, purchased a total of 27,012 common shares. One of the directors, Ms. Xiaorong Teng, also purchased 20,000 common shares. These purchases were made in accordance with Rule 10b-18 of the Securities and Exchange Act of 1934, as amended.

Mr. Chang said, "While we are focusing on building a strong organic fertilizer company to capture greater market share in China, we believe the current stock price does not reflect our long-term value. Our goal is to build long-term shareholder value. We will continue to consider implementing a company share buy back program as a way to preserve and enhance our shareholder value, if there is an opportunity."

Business Outlook

For the full year 2009, the Company is expecting net sales to be approximately $60 million and net income to be approximately $9.5 million.

These targets are based on the Company's current views on the operating and market conditions, which are subject to change.

Mr. Chang concluded, "In 2009, we will leverage our R&D platform to further broaden our product offerings. Our goal is to use our market leading position to continue to grow our sales of humic-acid based organic fertilizers through our existing national sales network and our distribution partnership with Sinochem. On the export front, we see good potential as we take advantage of the Chinese government's new preferential export policies of increased VAT refund. I am confident that with our proprietary granular products, national distribution and manufacturing capacity and favorable government policies to develop the rural economy, China Agritech is well positioned for a profitable growth year in 2009."

Conference Call Information

The Company will host a conference call, to be simultaneously Webcast, on Wednesday, April 1, 2009, at 8:00 a.m. Eastern Daylight Time, or 8:00 p.m. Beijing Time. To participate, please call +1-866-519-4004 (North America) or 1-800-819-0121(China). Conference ID # 93151614

A live Webcast of the conference call will be available on China Agritech's Website at http://www.chinaagritechinc.com . Please visit the Website at least 15 minutes early to register for the Webcast and download any necessary audio software.

A replay of the call will be available through Wednesday, April, 15, 2009 at 11:59 p.m. EDT. To access, dial +1-612-8235-5000. Conference ID Number: 93151614.

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacturing and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritechinc.com .

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes", "expects" or similar expressions regarding statements, including, but not limited to, the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward- looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

                    CHINA AGRITECH, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS

                                                 DECEMBER 31,    DECEMBER 31,
                                                        2008            2007
                                                    (AUDITED)       (AUDITED)
    ASSETS
    Current Assets
    Cash and cash equivalents                    $11,952,235     $11,841,221
    Restricted cash                                       --       2,011,415
    Accounts receivable, net                      34,773,115      21,876,368
    Inventories                                    6,452,618       3,508,741
    Advances to suppliers                         10,795,357      12,343,255
    Prepayments and other receivables              2,484,346       1,242,693

    Total Current Assets                          66,457,671      52,823,693
    Property and equipment, net                    4,496,045       3,798,958
    Deposit for equipment                            749,799              --
    Construction in progress                         961,551              --


    Total Assets                                  72,665,066      56,622,651

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities
    Accounts payable                               3,327,281          41,146
    Accrued expenses and other payables              221,954         229,049
    Amount due to related parties                         --         352,505
    Taxes payable                                  1,388,897       1,650,243

    Total Current Liabilities                      4,938,132       2,272,943

    Minority Interest                              4,928,434       3,465,724

    Commitments                                           --              --

    Stockholders' Equity
    Common stocks; $0.001 par value,
     100,000,000 shares authorized,
     24,699,615 shares issued and
     outstanding as of December 31,2008
     and December 31,2007                             24,700          24,700

    Additional paid in capital                    26,148,879      26,135,914
    Statutory reserve                              5,425,407       4,299,653
    Accumulated other comprehensive income         5,837,917       2,578,107
    Retained earnings                             25,361,597      17,845,610

    Total Stockholders' Equity                    62,798,500      50,883,984

    Total Liabilities and Stockholders'
     Equity                                       72,665,066      56,622,651



                    CHINA AGRITECH, INC. AND SUBSIDIARIES
                        CONSOLIDATED INCOME STATEMENTS

                             THREE MONTHS PERIODS    12 MONTHS PERIODS ENDED
                               ENDED DECEMBER 31,          DECEMBER 31,
                                   (Audited)                (Audited)
                                   2008        2007         2008         2007

    Net sales                $7,156,465  $7,934,150  $45,240,212  $38,008,580
    Cost of sales            (4,460,320) (5,307,861) (24,889,387) (18,939,725)
    Gross profit              2,696,144   2,626,289   20,350,825   19,068,855
    Operating expenses
    Selling expenses            646,822     505,612   (2,369,763)  (1,723,869)
    Operating and
     administrative expenses (1,561,923)   (670,314)  (4,265,655)  (2,418,895)
    Total operating expenses   (915,101)   (164,702)  (6,635,418)  (4,142,764)
    Income from operations    1,781,044   2,461,587   13,715,407   14,926,091
    Other income (expense)      (27,295)     14,073      (56,165)     (40,548)
    Interest income               6,082     114,637       91,984      152,400
    Exchange gain (loss)        278,888      32,425      231,326         (271)
    Total other income
     (expense)                  257,675     161,135      267,145      111,581
    Income before income
     taxes and minority
     interest                 2,038,719   2,622,722   13,982,552   15,037,672
    Provision for income
     taxes                     (775,797)   (938,932)  (4,151,782)  (5,391,464)
    Income before minority
     interests                1,262,922   1,683,790    9,830,770    9,646,208
    Minority interests         (198,452)   (232,114)  (1,189,029)  (1,117,583)
    Net income                1,064,470   1,451,676    8,641,741    8,528,625
    Other comprehensive
     income
    Foreign currency
     translation adjustment     (14,078)    622,391    3,259,810    1,976,819
    Comprehensive income      1,050,392   2,074,067   11,901,551   10,505,444
    Basic weighted average
     shares outstanding      24,699,615  24,811,761   24,699,615   21,868,338
    Basic net earnings per
     share                         0.04        0.06         0.35         0.39
    Diluted weighted average
     shares outstanding      24,699,615  24,811,761   24,699,615   21,929,031
    Diluted net earnings per
     share                         0.04        0.06         0.35         0.39



                    CHINA AGRITECH, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                         12 MONTHS PERIODS ENDED DECEMBER 31,
                                                       2008              2007
                                                   (Audited)         (Audited)
    Cash flows from operating activities:
    Net income                                   $8,641,741        $8,528,625
    Adjustments to reconcile net income
     to net cash used in operating
     activities:
    Stock based compensation                         12,965            37,942
    Minority interest                             1,189,029         1,117,583
    Depreciation and amortization                   549,341           390,736
    Provision for doubtful debts                    195,616            57,745
    (Increase) decrease in current
     assets:
    Accounts receivable                         (11,306,241)       (9,333,639)
    Inventories                                  (2,638,273)       (2,186,497)
    Advances to suppliers                         1,668,798        (3,626,775)
    Prepayments and other receivable             (1,503,874)         (455,699)
    Due from shareholders                                --            22,532
    Increase (decrease) in current
     liabilities:
    Accounts payable                              3,226,288          (357,627)
    Taxes payable                                  (375,076)          532,043
    Accrued expenses and other payables            (553,730)          625,851
    Net cash used in operating activities          (893,416)       (4,647,180)

    Cash flows from investing activities:
    Acquisition of property & equipment           (951,588)       (1,429,517)
    Construction in progress                      (966,168)               --
    Restricted cash                                 11,415            88,821
    Net cash used in investing activities       (1,906,341)       (1,340,696)

    Cash flows from financing activities:
    Amount held in escrow account                2,000,000        (2,000,000)
    Issuance of shares for cash                         --        13,484,478
    Net cash provided by financing
     activities                                  2,000,000        11,484,478
    Net (decrease) in cash and cash
     equivalents                                  (799,757)        5,496,602

    Effect of exchange rate change on
     cash and cash equivalents                     910,771           (85,390)
    Cash and cash equivalents, beginning
     of year                                    11,841,221         6,430,009
    Cash and cash equivalents, end of
     year                                       11,952,235        11,841,221
    Supplement disclosure of cash flow
     information:
    Income taxes paid                            4,437,384         5,266,039
    Cash from issue of common stock
     placed in escrow account                           --         2,000,000

    Non-cash Investment and Financing
     Activity:
    Offset of amounts due to/from
     stockholders                                  320,666                --



    For more information, please contact:

    In China:
    China Agritech, Inc.
     Mr. Kelviz Lim Kok Siak
     Investor Relations
     Tel:   +86-10-5962-1220
     Email: kelviz@chinaagritech.com

    In the U.S.:
    Grayling
     Mr. Kevin Theiss
     Investor Relations
     Tel:   +1-646-284-9409
     Email: ktheiss@hfgcg.com

     Mr. Valentine Ding
     Investor Relations
     Tel:   +1-646-284-9409
     Email: vding@hfgcg.com

Between March 11 and March 13, 2009, Mr. Yu Chang purchased a total of 27,012 common shares with market prices ranging between $0.86 and $1.05 per share and Ms. Xiaorong Teng purchased 20,000 common shares with market prices ranging between $0.86 and $1.01 per share. Mr. Chang, through an affiliated entity, already has a substantial position in China Agritech's stock, being the largest shareholder.

Mr. Yu Chang commented, "We believe the current stock price does not reflect our long-term value."

"We believe we have built a successful business and we are potentially entering a new phase of growth with our new granular fertilizers to enhance our market share in the growing organic fertilizer market in China. We announced higher 2008 preliminary unaudited revenues and net income compared with the results of a year ago. The purchase of the Company's stock reflects our confidence in the Company and our commitment to the Company's future."

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacturing and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritechinc.com .

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes", expects" or similar expressions regarding statements, including, but not limited to, the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
     Mr. Kelviz Lim Kok Siak
     Investor Relations
     China Agritech, Inc.
     Tel:   +86-10-5962-1220
     Email: kelviz@chinaagritech.com

    In the U.S.:
     Mr. Kevin Theiss / Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9409
     Email: ktheiss@hfgcg.com
            vding@hfgcg.com

Mr. Zhu, 42, joined Beijing Agritech Fertilizer Co., Ltd. ("Beijing Agritech"), a wholly owned subsidiary of the Company, in January 2006 as Vice President of Strategic Development. He became the President of Beijing Agritech in April 2007. From 2002 to end of 2005, Mr. Zhu was the CEO and Director of Gateguard Information, an IT company based in Beijing.

Mr. Zhu holds a bachelor's degree in physics from Xuzhou Normal University and a master's in physics from Henan University. He also holds a law degree and is a state-certified Economist in China.

"I am very pleased to have Mr. Zhu join China Agritech's senior executive team," Mr. Yu Chang, Chairman and CEO of China Agritech, said. "Over the past three years, Mr. Zhu has demonstrated his superb managerial skills at Beijing Agritech and successfully executed our expansion plans in the domestic market. And his understanding of the Chinese law and the macroeconomic environment for Chinese companies is an additional benefit we can draw upon as China Agritech positions itself for a period of rapid growth in the granular organic fertilizer market in China."

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacturing and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information, please visit http://www.chinaagritechinc.com .

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
     Mr. Kelviz Lim Kok Siak
     Investor Relations
     China Agritech, Inc.
     Tel:   +86-10-5962-1220
     Email: kelviz@chinaagritech.com

    In the U.S.:
     Mr. Kevin Theiss / Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9409
     Email: ktheiss@hfgcg.com
            vding@hfgcg.com

BEIJING, March 16 /PRNewswire-Asia-FirstCall/ -- China Agritech, Inc. (OTC Bulletin Board: CAGC) ('China Agritech' or the 'Company'), a leading national liquid and granular organic compound fertilizer manufacturer and distributor in China, today announced that it has completed the construction and testing of its first facility for granular organic compound fertilizers in China. Located in Anhui Province, the facility is expected to begin production in April 2009.

The new granular production line, which is housed in a new plant next to the Company's existing liquid organic fertilizer factory, has a 100,000 ton annual production capacity. It recently obtained the production license and fertilizer registration from the local government in Anhui Province, which also granted the Company exemption from the Value-Added Tax (VAT) for granular organic fertilizers.

Previously, the Company was making its granular products through a third-party manufacturer in Eastern China.

'We are excited that our first granular fertilizer production base is strategically located in Anhui Province, one of China's biggest fertilizer markets,' Mr. Yu Chang, Chairman and CEO of China Agritech, said. 'Being in one of China's biggest grain-producing regions with 50 million farmers and abundant low-cost labor enables us to service our customers in a quicker and more economical way. In addition, the local government has always supported the growing use of organic fertilizers, which surpass chemical fertilizers in safety, efficacy and environmental friendliness. With the new Anhui plant, we could reposition our existing Beijing plant as an R&D center to focus on the development of the core ingredients to supply our granular production bases internally.'

Mr. Chang continued, 'Since the launch of our proprietary granular products in late 2008, we have seen robust demand in Anhui and surrounding regions, and expect that trend to continue as the Chinese government seeks to increase farmers' income and boost the growth of diversified crops, especially for organic food.'

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacturing and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritechinc.com.

Safe Harbor Statement

This release contains certain 'forward-looking statements' relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions regarding statements, including but not limited to, the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:
    Mr. Kelviz Lim Kok Siak
    Investor Relations
    China Agritech, Inc.
    Tel:   +86-10-5962-1220
    Email: kelviz@chinaagritech.com

    In the U.S.:
    Mr. Kevin Theiss / Mr. Valentine Ding
    Investor Relations
    Grayling
    Tel:   +1-646-284-9409
    Email: ktheiss@hfgcg.com
             vding@hfgcg.com

SOURCE China Agritech, Inc.

Source: PR Newswire (March 16, 2009 - 6:52 AM EDT)

   - Teleconference to Begin Monday, November 10, 2008, at 8:30 a.m. EST -

BEIJING, Nov. 7 /Xinhua-PRNewswire-FirstCall/ -- China Agritech, Inc. (OTC Bulletin Board: CAGC) ("China Agritech" or "the Company"), a leading national- level liquid and granular organic compound fertilizer manufacturer and distributor in China, today announced its net income for the third quarter ended September 30, 2008, increased 35.3% to $3.5 million from the same period last year. Earnings per diluted share rose 40% to $0.14 as compared with the same period last year.

    Financial Highlights

    Third Quarter of 2008 vs. the same period of 2007

    -- Net sales increased 43.8% to $16.7 million

    -- First sales of granular fertilizers generated $3.6 million, or 21.5% of

       net sales

    -- Net income rose 35.3% to $3.5 million

    -- Earnings per share rose 40.0% to $0.14

    Nine Months of 2008 vs. the same period of 2007

    -- Net sales rose 26.6% to $38.1 million

    -- Net income increased 7.1% to $7.6 million

    -- Earnings per share were $0.31, compared with $0.34 last year

    Operational Highlights

    -- Commenced production of granular fertilizers; contributed 21.5% of net

       sales

    -- Mr. Yau-Sing Tang appointed as Chief Financial Officer in October 2008

    -- Three independent directors appointed to the board in October 2008

"I am pleased to report a robust quarter on both the top and bottom lines," said Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech. "The demand for liquid organic compound fertilizers remained solid, and we successfully marketed and sold granular compound fertilizers for the first time in the third quarter. Our strategy for the rest of the year and continuing into 2009 is to enhance our payment-collection efforts and focus on customers with strong balance sheets, while actively pursuing government production licenses for the three granular plants that we are building in various regions of China."

Mr. Chang continued, "The Chinese government's new rural reform which was announced mid-October will ensure the safety, efficacy and environmental friendliness of crop production in China. With that in mind, we continue to be bullish on China's $1.5-billion green food market, which will drive the growth of organic fertilizers, both liquid and granular. We reaffirm our guidance for the year 2008."

Third Quarter of 2008 Results

For the third quarter of 2008, the Company recorded net sales of $16.7 million, a 43.8% increase from the same period of last year. Net sales for the first time included revenue from a new product, granular fertilizer, which accounted for 21.5%.

Excluding granular fertilizer products, sales of liquid fertilizers increased 13.1% from the same period of last year, benefiting from continued efforts to establish new markets in the central and southern regions of China.

Gross profit rose 9.7% to $6.8 million from the same period of last year. Gross margin was 40.7%, compared with 53.3% in the same period of last year. The decrease in gross margin was mainly because of the introduction of granular fertilizers that we began to produce through a third-party manufacturer in September 2008. Gross margin for the liquid fertilizers was 48.3% in the third quarter of 2008.

Selling expenses rose 31.4% to $1.1 million from the same period of last year. As a percentage of net sales, they were 6.5% compared with 7.1% in the same period of last year. The increase was mainly attributable to additional compensation paid to sales personnel as well as a rise in transportation costs reflecting higher sales volume.

General and administrative expenses rose 6.0% to $780,000 from the same period of last year. As a percentage of net sales, they were 4.7% compared with 6.4% in the same period of last year. The increase was mainly due to factory rental expenses related to the Company's new granular fertilizer plant in Beijing as well as increased compensation related to the addition of new members to the management team.

Operating income rose 6.4% to $4.9 million from the same period of last year.

The effective tax rate was 24.4%, compared with 36.3% in the same period of last year. The decrease was due to the change in Chinese tax laws, which took effect on January 1, 2008.

Net income rose 35.3% to $3.5 million from the same period of last year. Earnings per diluted share were $0.14, compared with $0.10 in the same period of last year.

Nine Months of 2008 Results

For the first nine months of 2008, net sales rose 26.6% to $38.1 million. Gross profit increased 7.4% to $17.7 million. Gross margin was 46.4%, compared with 54.7% in the same period of last year. Total operating expenses increased 43.8% to $5.7 million. Net income grew 7.1% to $7.6 million. Earnings per diluted share were $0.31, compared with $0.34 in the same period of last year. The decrease in EPS was because of the increase in the total number of diluted shares outstanding, which was 24,699,615 as of September 30, 2008.

Liquidity Conditions

As of September 30, 2008, the Company had cash and cash equivalents of $5.3 million, compared with $7.4 million at June 30, 2008. Net working capital was $60.9 million, compared with $56.8 million at June 30, 2008. Days of sales outstanding were 245 days. Total shareholders' equity was $61.7 million, compared with $58.1 million at June 30, 2008.

Operational Highlights

In the third quarter of 2008, the Company commenced the production of granular fertilizer products via a third-party manufacturer, as it awaits the government production license for its own Beijing plant. The Company expects to receive the license by the end of November 2008.

On October 15, 2008, the Company announced that it renewed a sales and distribution partnership contract with Sinochem Fertilizer Co., Ltd. ("Sinochem") for RMB 64.9 million ($9.5 million), through the end of 2009. Under the terms of the new contract, the Company will provide 1,200 tons of its premium, highly concentrated liquid organic compound fertilizer, Green Vitality, to Sinochem upon purchase orders. The Company will also assist in marketing initiatives such as print and TV advertisements, promotional conferences and demos at retail shops.

On October 22, 2008, the Company announced the appointment of three independent directors: Mr. Gene Michael Bennett, Professor Lunzhang Dai, and Mr. Hailin Zhang. The Company also announced in conjunction with the appointments the resignation of Mr. Tao Liang from its board. The Company's board now comprises five directors, a majority of whom are independent as defined by the NASDAQ marketplace rules. In addition, the Company has established a fully independent audit committee, chaired by Mr. Bennett, as well as fully independent compensation and nominating and governance committees.

On October 23, 2008, the Company announced the appointment of Mr. Yau-Sing Tang as Chief Financial Officer. With the three new independent directors of the board, this will entitle China Agritech to receive $2 million from an escrow account, according to the Escrow Agreement in connection with the 2007 PIPE transaction.

"Our new CFO and the new members of our board of directors bring us substantial depth and expertise in accounting, corporate finance and financial-reporting experience," said Mr. Chang. "We look forward to drawing upon their expertise, and upon Mr. Tang's extensive contacts in the financial services industry, to strengthen our company, bring further value to our stockholders, and to improve our communication with the investor community."

Business Outlook

The Company reaffirms its expectation that revenue for the 2008 year will be in the range of $54 million to $56 million and net income will be in the range of $8.5 million to $9.0 million.

These targets are based on the Company's current views on the operating and market conditions, which are subject to change.

Conference Call Information

The Company will host a conference call, to be simultaneously Webcast, on Monday, November 10, 2008, at 8:30 a.m. Eastern Standard Time, or 9:30 p.m. Beijing Time. To participate, please call + 1 (877) 407-9205 (North America) or + 1 (201) 689-8054 (International).

A live Webcast of the conference call will be available on China Agritech's Website at http://www.chinaagritechinc.com . Please visit the Website at least 15 minutes early to register for the Webcast and download any necessary audio software.

A replay of the call will be available through Monday, November 17, 2008, at 11:59 p.m. EST. To access, dial +1 (877) 660-6853 (North America) or +1 (201) 612-7415 (International). Enter Account Number: 286 and Conference ID Number: 301974.

About China Agritech, Inc.

China Agritech, Inc. is engaged in the development, manufacturing and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

For more information about the Company, please visit http://www.chinaagritechinc.com .

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions, including but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

    For more information, please contact:

    In China:

     Mr. Kelviz Lim

     Investor Relations

     China Agritech, Inc.

     Tel:   +86-10-5962-1228

     Email: kelviz@chinaagritech.com

    In the U.S.:

     Valentine Ding

     Investor Relations

     Grayling Global

     Tel:   +1-646-284-9412

     Email: vding@hfgcg.com

                          Financial Tables to Follow