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Yongye International Announces Preliminary Second Quarter 2010 Revenue and Updates Guidance

Monday, July 19, 2010 Corporate News
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BEIJING, July 19 Yongye International, Inc.(Nasdaq: YONG) ("Yongye" or the "Company"), a leading manufacturer, developerand distributor of "Shengmingsu" brand plant and animal nutrient products inChina, today announced preliminary revenue results for the second quarterended June 30, 2010, and updated its sales guidance.
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Yongye expects to report preliminary unaudited revenue for the secondquarter of 2010 of approximately $89 million, a 93.5% increase from $46million for the same period last year. For the first half of 2010,approximately 39% of sales came from Guangdong, Henan, Hubei and otherprovinces in central and southern China that are outside of the fivetraditionally strong provinces in northern China where the Company's businessoriginated and where the bulk of revenues have historically been generated.
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Yongye also updated its revenue outlook for 2010 and now expects full year2010 revenue of between $180 million and $185 million, compared with thepreviously provided guidance of between $160 million and $165 million. TheCompany plans to provide updated net income guidance when it reports itssecond quarter financial results in full next month.

"Our strong second quarter sales and increased revenue guidance reflectthe robust demand for our Shengmingsu agricultural nutrient products amongrural Chinese farmers," stated Mr. Zishen Wu, Chief Executive Officer. "Weare seeing strong sales growth in our traditional provinces as well from thenewer Yongye branded stores in central and southern China. This growingdemand is a testament to the effectiveness of our product in helping farmersincrease crop yields and shorten harvest times, thereby providing them with acompelling return on investment. It also reflects the success of ourintegrated advertising and promotion campaigns at the national, provincial andvillage level which ensures that rural farmers continue to respond positivelyour branding message that Shengmingsu gives them the best value propositionfor their plant and animal nutrient needs.

"We are confident in our ability to continue to grow our business and meetthe anticipated demand for our Shengmingsu products. We recently announced a50% capacity increase in our existing plant nutrient production facility from10,000 tons to 15,000 tons per annum as a result of streamlining ourproduction process and upgrading our manufacturing equipment. We have beenutilizing almost all of this additional production capacity. In addition, wehave a new production facility that is scheduled to come online in Septemberthat will add an additional 20,000 tons of capacity per year for our liquidplant product and 10,000 tons per year for our powder animal product.

"Overall, we remain optimistic about our business prospects. We seestrong demand for our products and have made the necessary improvements to ourbusiness infrastructure and invested in new capacity to ensure that Yongye ispositioned to continue to capitalize on the attractive opportunities in theagricultural nutrient space in China."

About Yongye International, Inc.

Yongye International is a Chinese agricultural nutrient companyheadquartered in Beijing, with its production facilities located in Hohhot,Inner Mongolia, China. Yongye markets two lines of organic nutrient products:a liquid nutrient product which is sprayed on plants and a powder nutrientproduct which is added to animal feed. Both products are sold under the brandname "Shengmingsu," which means "life essential" in Chinese. The Company'spatented and patent pending formulas and proprietary extraction processesallow it to create products that increase crop yields and improve the healthof livestock. The Company sells its products primarily to provincial orregional level distributors, who then channel those products to a carefullyselected network of independently-owned Yongye branded stores in China. Formore information, please visit the Company's website athttp://www.yongyeintl.com .

Safe Harbor Statement

This press release contains certain statements that may include"forward-looking statements." All statements other than statements ofhistorical fact included herein are "forward-looking statements." Theseforward-looking statements are often identified by the use of forward-lookingterminology such as "believes," "expects" or similar expressions, involvingknown and unknown risks and uncertainties. Although the Company believes thatthe expectations reflected in these forward-looking statements are reasonable,they do involve assumptions, risks and uncertainties, and these expectationsmay prove to be incorrect. You should not place undue reliance on theseforward-looking statements, which speak only as of the date of this pressrelease. The Company's actual results could differ materially from thoseanticipated in these forward-looking statements as a result of a variety offactors, including the risk factors discussed in the Company's periodicreports that are filed with the Securities and Exchange Commission andavailable on the SEC's website (http://www.sec.gov ). All forward-lookingstatements attributable to the Company or persons acting on its behalf areexpressly qualified in their entirety by these risk factors. Other than asrequired under the securities laws, the Company does not assume a duty toupdate these forward-looking statements.For more information, please contact: Contact: Yongye International, Inc. Mr. Larry Gilmore-VP of Corporate Strategy Phone: +86-10-8232-8866 x8880 Email: [email protected] CCG Investor Relations, Inc. Mr. Crocker Coulson, President Phone: +1-646-213-1915 Email: [email protected] Athan Dounis, Account Manager Phone: +1-646-213-1916 Email: [email protected]

SOURCE Yongye International, Inc.
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