Yongye International Announces RMB 400 Million Revolving Credit Facilities

BEIJING, Sept. 1 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 that the Company's operating subsidiary, YongyeNongfeng Biotechnology ("Yongye Nongfeng"), entered into two new revolvingcredit facilities totaling RMB 400 million (approximately $59 million).

Under the terms of the revolving credit facility with the AgriculturalBank of China, Yongye Nongfeng can borrow up to a total of RMB 300 million(approximately $44 million) at an interest rate equal to the benchmark lendingrate designated by the People's Bank of China ("PBC"), China's central bank.

Under the terms of the revolving credit facility with the China CITIC Bank,Yongye Nongfeng can borrow up to a total of RMB 100 million (approximately $15million) at an interest rate that is 30% above the benchmark lending ratedesignated by the PBC.

The credit facilities have one-year terms and Yongye Nongfeng can applyfor renewal at the end of the 12-month period. Yongye Nongfeng has noobligation to utilize all or part of the credit facilities.

"We are pleased to be able to enter into these credit facilities tosupport our working capital needs," stated Mr. Zishen Wu, Chief ExecutiveOfficer of Yongye International. "We appreciate the support that we havereceived from our lending institutions, including the Agricultural Bank ofChina, which has the best expertise to serve the agricultural businesscommunity and recently completed the world's largest initial public offering.We believe these credit facilities are an important first step towardsdeveloping strong long-term banking relationships for the benefit of ourcompany and shareholders."

"This new credit facility will provide us with additional capitalflexibility and liquidity as we continue to rapidly grow our business. Ourbusiness exhibits a strong seasonality, with between 70% and 80% of our annualsales occurring in the second and third quarters. As such, we have significantinventory needs. In addition, we provide our key distributors withthree-to-six month credit terms. We are confident in extending these terms toour distributors as we have very safe accounts receivable, with no accountsreceivable outstanding over six months and no bad debt. In fact, in the secondquarter of 2010, our accounts receivable collection significantly improved to32 days compared to 42 days in the prior year period. We also expect ourfuture cash outflow needs to decrease after we complete our verticalintegration and the acquisition of the lignite coal resource project, which isexpected to close by the end of the year. Overall, we believe that ourimproved operating cash flow together with our significantly enhancedborrowing power from our new credit lines provides us with the necessaryflexibility to support our business and continue to achieve our growth plansand strategic objectives."

About Yongye International

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: Yongye International Mr. Larry Gilmore-VP of Corporate Strategy Phone: +1-626-319-4742 (U.S.) Tel: +86-10-8232-8866 (China) Email: larry.gilmore@yongyeintl.com Ms. Wendy Xuan-Business Associate Phone: +86-10-8232-8866 x 8827 Email: wendy.xuan@yongyeintl.com CCG Investor Relations Mr. Crocker Coulson, President Phone: +1-646-213-1915 Email: crocker.coulson@ccgir.com Athan Dounis, Account Manager Phone: +1-646-213-1916 Email: athan.dounis@ccgir.com

SOURCE Yongye International, Inc.