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Yongye Biotechnology International to Expand its Network of Branded Stores

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. Storeowners receive direct marketing and product support from Yongye's service professionals and the opportunity to sell a high quality nationally marketed product.

A network of independent distributors sells Yongye's products to the branded stores, which are located in 10 provinces. These distributors have the important task of attaching storeowners of newly branded stores to the Company's overall sales network by providing them with the training and support needed to link the Company to its end users. Underscoring the importance of the independent distributors to its sales model, the Company plans to increase and strengthen its distribution network throughout 2009.

"Expanding our distribution channels and network of branded stores is critical for us to keep pace with market demand for our products. Our easily scalable 'community-based' branded store sales model is unique in our industry and has allowed us to increase sales faster than if we developed our own corporate stores," said Mr. Zishen Wu, Chairman and CEO of Yongye. "We recently expanded our production facilities and will be able to support additional stores and meet demand for our "Shengmingsu" plant and animal nutrient products. Looking at the stores currently going through the trial process, we see the largest number of new stores in Hebei province, while our fastest growth is in Shandong province."

About Yongye Biotechnology International, Inc.

Yongye Biotechnology International, Inc., headquartered in Beijing, is engaged in the development, distribution and sales of fulvic acid based nutrients for plants and animals. The Company's patent pending processes and proprietary formulas allow it to create products which increase crop yields and improve the health of livestock. Its sole operating subsidiary, Yongye Nongfeng Biotechnology Company, Ltd., is located in Inner Mongolia. The Company sells its products through distributors and directly to farmers located in ten provinces throughout China.

Forward Looking Statements

Certain statements set forth in this press release constitute "Forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. All such forward-looking statements involve risks and uncertainties, including, but not limited to: the effects of the current drought affecting many regions of the PRC, the global financial crisis, patents and regulatory approvals; the effect of competition and proprietary rights of third parties; the need for and availability of additional financing and access to capital; the seeking of joint development, licensing or distribution and collaboration and marketing arrangements with other companies. There can be no assurance that such forward-looking statements will prove to be accurate and Yongye undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.

    For more information, please contact:

    Yongye Biotechnology International, Inc.
     Mr. Larry Gilmore, VP of Corporate Strategy
     Phone: +86-8232-8866 x8880

    CCG Investor Relations, Inc.
     Mr. Crocker Coulson, President
     Phone:    +1-646-213-1915 (New York)
     Web site:

SOURCE Yongye Biotechnology International, Inc.
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