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Exhibit 99.2
China Organic Announces Agreement With Major Songyuan City
Retail Distribution
System
Agreement Targeting Fast-Growing Middle Class Market Segment to
Generate $4
Million Within Calendar Year 2007
China Organic Agriculture, Inc. (OTCBB:CNOA), a growth-driven
agricultural and
products company leading China's organic foods revolution, today
announced that
the Company has reached a milestone 3-year retail distribution
agreement with
Shunda Grain and Oil Company of Songyuan City, one of the
largest cities in the
northeastern province of Jilin.
The agreement with Shunda Grain and Oil is the latest validation
of CNOA's
stated strategic initiatives to expand market share by gaining
new partnerships
with major retail distribution system partners in China and
other emerging
economies in Asia.
The agreement is expected to contribute revenues of 30 million
Yuan, equivalent
to approximately USD $4 million within calendar year 2007. The
agreement states
that Shunda Grain and Oil will become one of CNOA's authorized
retailers in the
supermarket chain store industry, selling "ErMaPao"
award-winning series of
products to the Fuyu region with more than 2.8 million
consumers.
"China Organic continues expand revenues and earnings from an
ever-growing list
of agreements with some of China's largest retail distribution
systems," said
Huizhi Xiao, Chairman of China Organic Agriculture. "This
agreement as well as
other major retail distributors such as Suguo and Hualian will
only help to
increase our growth as we look to move forward with expanding
our distribution
systems and broaden our share of the large rice market in
Songyuan City."
Shunda Grain and Oil joins a growing network of large retailers
that CNOA has
established over the past several months including two of
China's largest retail
chains Nanjing Suguo Supermarkets and Hulian Hypermarkets of
Beijing with annual
revenues $3 billion and $780 million respectively.
About China Organic Agriculture
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