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Origin Announces Nationwide Corn Seed Approvals and Additional Provincial Approval

Conventional Breeding Program Continues to Bring New Products
New Seeds Optimize Local Production

BEIJING--(BUSINESS WIRE)--Origin Agritech Limited (NASDAQ GS: SEED) ("Origin"), a leading technology-focused supplier of crop seeds and agri-biotech research in China, today announced the Ministry of Agriculture has approved two new corn hybrid varieties to its product line for nationwide distribution during the next sales season. The Company now has over 55 total corn hybrids approved for sale into the marketplace next year. Revenues from corn products consisted of roughly 75% of total revenues in 2007, and are expected to continue to be the company's main product category in future years. This year marks the company's 10th year of their own internal breeding program.
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The two new corn seed products approved for nationwide distribution include Lin Ao 9, and Ao Yu 28. These additional products will aid our program to expand the Company's geographic reach throughout China. Lin Ao 9 and Ao Yu 28 are suitable for the Southwest corn growing regions. However, given both products have received nationwide approval, they are able to be sold into any regions of China. In addition to expanding our product coverage, seeds approved on a nationwide level generally allow the Company increased marketing flexibility in deployment of the products and the ability to cross products into additional regions if the products are determined to be suitable for the given regions. Generally, products selected for nationwide deployment are more stable across a wider variety of environmental conditions. One additional corn hybrid, Ao Yu 4, has been approved for sale in the Ningxia province in China. The corn seed market in China is estimated at US billion.

The nationwide approval process runs in parallel with the provincial approval processes, and is one of the most rigorous regulatory requirements in all of China. Like the provincial process, the nationwide approval requires the applicant to undergo two growing seasons of monitored growth in more than 10 different locations around the country. Seeds submitted for testing are planted together with local-area control seeds, which are typically the seeds that have performed exceedingly well in the testing regions. Only seeds that have an increased yield of 5-8% or higher versus these control seeds are cleared to proceed to the next year of testing. When all tests are successfully completed, the approval is granted. The company expects further approvals in rice and cotton seed in the upcoming weeks.