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Yongye International, Inc. Begins Construction of New Production Facility
Date:5/10/2010

BEIJING, May 10 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (Nasdaq: YONG), ("Yongye" or the "Company") a leading manufacturer, developer and distributor of Shengmingsu brand plant and animal nutrient products in the People's Republic of China (PRC), today announced that the Company has started the construction of a new production facility in Wuchuan County, Hohhot Municipal City, Inner Mongolia Autonomous Region.

The Company's current production facility is operating at near full capacity in order to meet market demand. The new production facility will be capable of producing 20,000 tons per annum of the Company's Shengmingsu liquid plant nutrient product and 10,000 tons per annum of the Company's Shengmingsu powder animal nutrient product. The new facility is expected to be operational by the end of the third quarter of 2010.

Upon completion, the new facility will expand annual production capacity for Yongye's Shengmingsu plant nutrient product from 10,000 tons per annum currently to 30,000 tons per annum, and that for its Shengmingsu animal nutrient product will increase from 1,000 tons per annum currently to 11,000 tons per annum.

Capital expenditures for the new production facility are expected to be between $15 million to $20 million. The Company plans to use proceeds from its December 2009 financing towards the construction.

"Due to very strong customer demand for our Shengmingsu agricultural nutrient products, our current production facility in Hohhot has reached its maximum capacity,"
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SOURCE Yongye International, Inc.
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