XI'AN, China, April 22 /PRNewswire-Asia-FirstCall/ -- China Agri-Business, Inc. ("China Agri" or "the Company," OTC Bulletin Board: CHBU), a manufacturer and distributor of organic agricultural application products in China, today commented on its financial results for the year ended December 31, 2009, which were filed on SEC Form 10-K on April 15, 2010.

    Year 2009 Highlights
    -- Sales increased 4.0% to $3.04 million in 2009 from $2.92 million
       in 2008.
    -- Gross profit decreased 6.3% to $1.97 million in 2009 from $2.10 million
       in 2008.
    -- Net income decreased 21.6% to $1.05 million in 2009 from $1.35 million
       in 2008.
    -- Diluted earnings per common share decreased 20.0% to $0.08 in 2009 from
       $0.10 in 2008.
    -- At year end 2009, China Agri had 49 direct sales stores, most of which
       were added during the year.
    -- At year end 2009, China Agri had 103 independent stores enrolled in its
       Super Chain Sales Partner Program in 2009, most of which were added
       during the year.

Mr. Liping Deng, Chief Executive Officer, President, and Director of China Agri-Business, commented on the Company's results for 2009 and the Company's outlook, "In the fourth quarter of 2008, we started an aggressive initiative that we call the 'New Agriculture-Generator.' The primary purpose of the initiative is to expand our business by creating our own sales network of direct sales stores for our products and also by partnering with existing stores to create a super chain of branded stores that feature China Agri's products. We believe this initiative will create closer relationships for us with farmers in the rural areas of China where our direct sales stores and the super chain stores are located.

"We made great progress as we expanded both of these channels in 2009. By year end 2009, we had 49 direct sales stores, controlled and managed by us, and 103 branded super chain stores. Those are just the start. These two distribution channels in 2009 together accounted for 34 percent of our sales for the year; two years ago, neither channel existed. The remaining 66 percent of our sales in 2009 were distributed through the traditional sales network that consists of independent wholesalers, distributors, and retailers.

"We expect to continue establishing direct sales stores in 2010, at a relatively rapid rate. For example, in the first quarter 2010, we opened approximately 200 additional direct sales stores in the Shaanxi and Hunan provinces, timed to capture sales near the start of the outdoor growing season. We expect to continue that aggressive expansion and believe we can have as many as 500 direct sales stores operating by the end of the year 2010. "