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Yongye Biotechnology International to Expand its Network of Branded Stores
Date:2/12/2009

BEIJING, Feb. 12 /PRNewswire-Asia-FirstCall/ -- Yongye Biotechnology International, Inc. (OTC Bulletin Board: YGYB; "Yongye" or the "Company"), a leading developer, producer and distributor of nutrients for plants and animals in the People's Republic of China, today announced plans to expand its network of branded stores from 775 to over 1,125 stores.

In the quarter ended December 31, 2008, the Company added 350 stores to its trial process through which stores are evaluated according to region-specific performance goals. A storeowner's ability to understand the Company's products, provide pre-sales service and post-sales support, and ability to generate revenue by selling "Shengmingsu" brand products are assessed during this trial process which lasts two to four quarters. The Company's intent is to brand all of the stores which successfully complete this trial process. Additionally, the Company plans to continue to add more stores in the first quarter of 2009 to bring its total number of Yongye branded stores to over 1,125 by the end of the quarter. The Company anticipates having 2,000 Yongye branded stores by the end of 2009.

The Company does not own any of its branded stores. Yongye works with distributors to target existing, independent agricultural stores which it believes meets its national branding criteria and then enters into agreements with storeowners through which the Company provides training about its products to storeowners and a computer to each store which contains educational and promotional information about the use of its products. Before becoming a Yongye branded store, stores are often physically cleaned and upgraded to meet the Company's national standards. Once a store becomes a Yongye branded store, Yongye's name is prominently displayed in front of the store, and its products are featured as headline products throughout the store through the use of various visual identity items.
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