Deyu Agriculture Corp. Adds New Subsidiary, Extends Business Coverage to Northeast China

Deyu Agriculture Corp. is a China-based vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains operating in Shanxi Province in the People's Republic of China. Its facilities include modern warehouses with storage capacity of over approximately 100,000 tons and production lines with annual production capacity of over approximately 105,000 and 700,000 tons for grain products and corn, respectively. The Company operates through three segments: corn division, grain division and bulk trading division. The corn division is in the business of purchasing corn from farmers, simple processing and distributing to agricultural product trading companies through wholesale. The business of the grain division is conducted by processing and distributing grains and other products. The business of the bulk trading division is conducted by bulk purchasing and the sale of raw grain.