• On July 10th, the Company announced a grain purchase agreement with Xinmiao Grain Depot to exclusively provide green rice grain to CNOA to meet the increasing demand for its well-known ErMaPao brand of high-quality rice products. This agreement also significantly reduces storage and administrative costs.
• On July 10th, the Company announced an agreement with state-owned Wukeshu Grain Depot to process green rice grain, providing 42,000 tons of green rice products per year to CNOA’s production. Wukeshu is a state-owned wholesale grain depot with a 150,000-square-foot facility that has a storage capacity of more than 200,000 tons.
• On July 10th, the Company announced agreements with Beijing Hualian Hypermarket and Nanjing Suguo Supermarket chains which increase CNOA’s product exposure in China’s larger cities. Beijing Hualian, with annual revenue of approximately $780 million, operates more than 50 retail mega-stores located across major cities in China. Nanjing Suguo, with annual revenue of approximately $3 billion, is considered to be the fourth largest supermarket chain in China and has more than 1,600 locations, with plans to open several hundred more.
• On August 29th, the Company announced agreements with Huaxing Foods and Qinghai Grain & Oil Company to expand CNOA’s distribution in the Changchun region. Changchun is the capital and largest city of Jilin province, located in northeast China.
• On September 3rd, the Company announced an agreement with Songyuan Grain & Oil Company to expand CNOA’s retail distribution in the Songyuan region.
• On December 10th, the Company announced agreements with Tongda Grain & Oil Company and Shunda Grain & Oil Company to expand CNOA’s retail distribution in the Songyuan region.

Huizhi Xiao, Chairman of China Organic Agriculture, stated, "The annual growth rate of organic foods has been approximately 20% in recent years and worldwide retail prices for organic foods are generally 40% higher than the prices for ordinary foods. Currently, China’s organic foods consist of less than 0.1% of its total consumer food market, far lower than the world’s average level of 2%, demonstrating a great deal of room for future expansion. As we enter 2008, we expect to fully benefit from agreements executed last year. Due in part to these agreements and combined with the more efficient manufacturing operations that we expect to achieve in 2008, China Organic Agriculture should see strong increases in its sales. Our goal is to continue to be one of the leaders in the green and organic rice industry in China while delivering significant value to our shareholders."

About China Organic Agriculture

China Organic Agriculture is among the largest producers of green and organic rice in China. CNOA controls all aspects of the process from developing seeds to planting, processing, R&D and distribution. The Company has an extensive sales network located in the major cities in China.

CNOA has experienced significant growth since its inception in 2002, and as an agricultural company is exempt from income taxes in China. CNOA has put solid plans in place to markedly expand revenues.

The quality of CNOA’s products results in the ability to obtain prices approximately 15% higher than comparables. CNOA has in excess of 6,260 acres dedicated to green and organic rice. The irrigation system is fed from the Nen River, one of the last unpolluted rivers in China. The Company’s flagship brand, ErMaPao, has won several quality awards and holds the highest organic certification and it is one of the most popular brands in the country.

For more information, please visit http://www.chinaorganicagriculture.com

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning estimates of, and increases in, production, cash flows and values, statements relating to the continued advancement of China Organic Agriculture's products and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," and similar expressions are forward-looking statements. Although China Organic Agriculture Inc. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include, but are not limited to, those set forth in our reports filed with the Securities and Exchange Commission, together with the risks discussed in our press releases and other communications to shareholders issued by us from time to time, such as our ability to raise capital as and when required, the availability of raw products and other supplies, competition, the costs of goods, government regulations, and political and economic factors in the People's Republic of China in which our subsidiaries operate.

China Organic Agriculture, Inc.
Steve Wan, 310-441-9777
stevewan@chinaorganicagriculture.com
or
Winning IR Company, Ltd.
Darren Minton, 212-823-0523
darren.minton@winningir.com