TORONTO, ONTARIO -- 11/09/09 --
Hanfeng Evergreen Inc. (Hanfeng) (TSX: HF), a leading provider of slow and controlled release fertilizers in China, today announced it has entered into an agreement (the "Agreement") with FBSciences, Inc. ("FBS") whereby Hanfeng will be the exclusive distributor in the Peoples Republic of China for FBS' CarbonPower®, a next generation proprietary technology that provides superior nutrient uptake and mobility within agricultural crops. Under the Agreement, Hanfeng gains exclusive distribution rights for two years to FBS' proprietary fertilizer technology, with a first right of refusal. For competitive reasons, financial terms of the Agreement were not disclosed.
In early 2009, with the cooperation of the China Ministry of Agriculture, Hanfeng field-tested CarbonPower® in Liaoning, Henan, Guangxi, Yunnan, Shandong and Shanxi provinces to prove the technology's efficacy in combination with Hanfeng's fertilizer products. As proven in field trials, CarbonPower® can significantly enhance the germination rate and increase crop yield by up to 10 to 25 percent. Based on the positive results from these field trials and the highly successful initial sales in June of 2009, Hanfeng will add CarbonPower® to its portfolio of value-added products for distribution and sale in China. Like other Hanfeng fertilizers, CarbonPower® improves the effectiveness and efficiency of fertilizers, while reducing the environmental impact associated with the excessive use of conventional fertilizers. This breakthrough product will provide a complimentary product line to Hanfeng's slow and controlled release fertilizers, dramatically increasing the potential of the nitrogen market in China. The Company intends to leverage its established relationships with urea producers for the sale and distribution of a coated product utilizing CarbonPower®.
"One of Hanfeng's core competencies is our ability to identify best-in-class value-add products that will be readily accepted in our primary markets," said Xinduo Yu, President and Chief Executive Officer of Hanfeng. "We anticipate CarbonPower® to be as successful in the Chinese fertilizer market as our slow release products were when first introduced in 2006. We are very pleased to have this Agreement with FBS and look forward to a very successful partnership."
Hanfeng initially plans to roll out this new product in the Shanxi province and expects the first sales of CarbonPower® products in the second half of fiscal 2010.
About FBSciences, Inc.
FBS is an agricultural technology company committed to helping growers around the world achieve optimal plant health and performance through innovative, scientific principles. Products from FBS utilize a revolutionary and proprietary technology that enables superior nutrient uptake and mobility by crops. FBS is headquartered in Collierville, Tennessee. For more information on FBS, visit www.FBSciences.com.
About Hanfeng Evergreen Inc.
Hanfeng is the largest producer of slow and controlled release fertilizers in China. It was the first company to introduce the concept of slow and controlled release fertilizers into China's agriculture market with its establishment of the first commercial scale production in China. All production facilities are located in prime agricultural regions of China. The Company is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange. www.hanfengevergreen.com
This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Hanfeng's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars except for noted otherwise.
Contacts:
Hanfeng Evergreen Inc.
Paul Begin
Chief Financial Officer
(416) 368-8588
pb@hanfengevergreen.com
Spinnaker Capital Markets Inc.
Kevin O'Connor
Investor Relations
(416) 962-3300
ko@spinnakercmi.com
