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Yongye International Announces 2010-2012 Strategic Plan
Date:10/2/2009

BEIJING, China, Oct. 2 /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 its 2010- 2012 strategic plan.

Following the Company's rapid business expansion in 2008 and thus far in 2009, Yongye expects to achieve at least 50% growth in revenue during each of the next three years through a strategy focused on geographic expansion into new markets, increased penetration in existing markets, additional marketing and brand-building efforts, and expanded production capacity. The Company also intends to improve its cost structure and gain greater control of its supply and distribution through vertical integration so as to enhance its profit margins.

Geographic Expansion

Building on the Company's success with its "branded store" network over the past two years, during which revenue nearly doubled from $48.1 million in 2008 to an anticipated level of $89-$90 million in 2009, Yongye plans to rapidly accelerate its expansion into new provinces, particularly those in southern China, beginning in 2010. The Company expects continued successful replication of the "branded store" model implemented by its distributors, which involves adding stores to its network and providing them with technical product training, sales leadership training, and integrated marketing campaigns.

In conjunction with its new market expansion strategy, Yongye also expects to see continued increases in the number of branded stores in existing markets and market penetration for Shengmingsu.

Marketing and Advertising

Yongye will continue to invest significantly in its highly effective c
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SOURCE Yongye International, Inc.
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