LOS ANGELES & LIAONING, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB: CNOA - News), a diversified food products company capitalizing on China's consumer revolution, today released a letter to shareholders from Jinsong Li, Chief Executive Officer, updating investors regarding recent developments at the Company.

My Fellow Shareholders:

It is my extreme pleasure to speak with you today and bring you details of our various initiatives as well as discuss our future plans. While the stock markets are challenging, China Organic Agriculture continues to deliver outstanding shareholder value by executing our aggressive business plans to achieve consistent and exceptional growth in our revenues and earnings.

Without losing any momentum—as a matter of fact our growth is accelerating on virtually all fronts—China Organic is in the process of transforming itself from an agricultural products company to a supplier and trader of upscale and high quality premium products such as California wines (which we will begin selling Fall 2009) as well as healthy, organic foods.

Our recent acquisition of Dalian Huiming, a major agricultural trading company with fiscal 2007 revenues and earnings of $40.2 million and $2.7 million, respectively, is the first of many planned and quickly accretive acquisitions. Our intention is to decisively move the Company into a leadership role by meeting the rising demand for specialty international and organic goods from the new and rapidly growing affluent middle class in Asia.

To better reflect this new corporate direction, a number of branding initiatives will be employed. I will bring investors news of these specific measures in the days to come.

Recently, we released our guidance for Q4 2008 and FY 2008. Let me recap:

• Q408 revenue of $54 million (vs. $15.7 million Q407), or an approximate 240% Quarter Over Quarter Revenue Increase
• FY08 revenue $113 million (vs. $44.5 million FY07), or an approximate 150% Year Over Year Revenue Increase
• Q408 net income $11 million (vs. $3.9 million Q407), or an approximate 180% Quarter Over Quarter Net Income Increase
• FY08 net income $20 million (vs. $13.5 million FY07), or an approximate 40% Year Over Year Net Income Increase
• Q408 EPS of $0.15 and FY08 EPS of $0.29

Let’s drill down into those numbers.

Investors will note that CNOA, courtesy of the current market volatility and global economic conditions, is trading at a price that roughly matches our earnings per share forecast of $0.29 for 2008, giving the shares a projected price-to-earnings of one. As well, with projected FY 2008 revenues of $113 million and a current market capitalization of approximately $22 million, it is apparent that our share price does not adequately reflect either our growth to date or potential against our revenue and earnings projections.

I am confident that given those facts, our shares represent a very compelling investment opportunity. To support that contention, I recently made a personal investment of 500,000 shares of CNOA.

Even though I have only been with China Organic for a short time, I am both gratified and excited with the substantive progress we have made and our plans for the future. Those initiatives will ensure that our highly experienced management team continues to aggressively expand our operations and develop new product lines. Our primary goal is to become the premier supplier of natural foods and products within the fastest growing markets in the world.

As I mentioned in our strategic initiatives release in October: “We will continue to diversify through acquisitions and offer a spectrum of premium food products, not just to mainland China, but the special administrative region of Hong Kong and other Asian countries as well.”

I thank you for your attention and support whether you are one of our valued shareholders or someone considering becoming one. We never lose sight of the value of our shareholders and their best interests are behind every decision we make.

Sincerely,

Jinsong Li

Chief Executive Officer

China Organic Agriculture

About China Organic Agriculture

China Organic Agriculture is a high growth international food products company capitalizing on China’s burgeoning domestic demand for premium products due to an expanding class of consumers with the ability to acquire premium food products.

The Company has developed an extensive distribution network throughout China including Beijing, Shanghai and Nanjing. The Company is positioned to leverage this network to increase market penetration with broad distribution of agricultural, food and related premium products. The Company has experienced significant growth since its inception in 2002 and continues to implement a number of strategic initiatives to further expand revenues and earnings. For more information, please visit: www.chinaorganicagriculture.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning future acquisitions, estimates of, and increases in, production, cash flows and values, statements relating to the continued advancement of China Organic Agriculture’s products and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," and similar expressions are forward-looking statements. Although China Organic Agriculture Inc. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include, but are not limited to, those set forth in our reports filed with the Securities and Exchange Commission, together with the risks discussed in our press releases and other communications to shareholders issued by us from time to time, such as our ability to raise capital as and when required, the availability of raw products and other supplies, competition, the costs of goods, government regulations, and political and economic factors in the People's Republic of China in which our subsidiaries operate.

China Organic Agriculture, Inc.
Steve Wan, 310-441-9777
stevewan@chinaorganicagriculture.com
or
Kate Ou, 646-200-6322
kateou@chinaorganicagriculture.com
or
China America Financial Communications Group
Darren Minton, 212-823-0523
chinaorganic@cafcg.com