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Letter to Shareholders from the CEO and Chairman of the Board of Yongye Biotechnology, Inc.
Date:9/18/2008

BEIJING, Sept. 18 /Xinhua-PRNewswire-FirstCall/ -- Yongye Biotechnology International, Inc. (OTC Bulletin Board: YGYB; "Yongye" or the "Company"), a leading developer, producer and distributor of fulvic acid based nutrients for plants and animals in the People's Republic of China, today released a letter to shareholders from the Company's CEO and Chairman of the Board, Mr. Zishen Wu, summarizing some recent Company events and plans for the future.

Dear Shareholders:

I would like to update you on some recent developments and plans for the future at Yongye.

On September 11, 2008, a registration statement registering 18,967,646 shares of common stock was declared effective by the Securities and Exchange Commission. The registration statement included shares of common stock and shares of common stock underlying warrants that were sold to investors in two separate private placement transactions that were closed in April and September, respectively, which are now eligible for resale to the public. There were several institutional investors in the most recent round of financing, many of which had participated in the April financing. The length of the registration process was well within the 150-day time limit required in our April Securities Purchase Agreement, even though we delayed going effective until the September financing was closed. We expect that over time this will contribute to improved trading liquidity in our stock.

We plan to seek a listing on NASDAQ in the near future and feel that this is an important time to update investors on the company's current plans and outlook.

We believe that Yongye has an exceptionally bright future because of very strong demand for our products, our scalable distribution model, the planned expansion of our manufacturing capacity, and pipeline of promising new products. We experienced exceptional growth in revenues and improved profitability during the first half of 2008, and we foresee th
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SOURCE Yongye Biotechnology International, Inc.
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