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Shandong Zhouyuan Seed and Nursery Co., Ltd. Expected to Benefit From the Recovery of China's Feed Industry

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2007-09-29 10:53:16     
Shandong Zhouyuan Seed and Nursery Co., Ltd.

Shandong Zhouyuan Seed and Nursery Co., Ltd. (OTC Bulletin Board: SZSN) (''SZSN'' or ''Parent Corporation''), which is incorporated in the State of Delaware, announced that its operating subsidiary company in China, Shandong Zhouyuan Seed and Nursery Co., Ltd. (''Zhouyuan'' or ''the Company''), will expect to benefit from the feed industry's upward trend due to the recovery of the domestic aquaculture industry over the next two years.

The growth in demand of the feed industry is one of the foundations for the growth of corn and corn seed consumption. According to a statement from the Information Center of China Feed Industry, over the last few years, due partly to recent epidemics, the high prices of raw materials and other factors have badly affected the domestic feed industry. About 5,000 small enterprises stopped producing during the said period. However, after experiencing a downward trend for years, feed production was up more than 21 million tons in the first quarter this year, showing a remarkable increase compared with the same corresponding period last year. Profit increases in the aquaculture industry will lead the feed industry recovery, and it is expected that in the next two years the demand for corn and corn seed will continue to increase.

The proportion of seeds for feed grain use is much higher than those for industrial use in China, and this trend will continue to expand further. Corn feed consumption in terms of all feed consumptions, is the most important for this industry and occupies a large proportion because it is difficult to substitute due to the irreplaceable roles of the nutrients. Statistics from the Chinese government state that the proportion is nearly 6%. Now the whole domestic feed production has reached 100 million tons, but the demand is far beyond that.

''According to '11th Five-Year Plan,' China will enhance the development of its feed industry and improve the legal systems in the feed production industry to protect and to sustain a healthy development, and give effective support to the aquaculture industry,'' said Wang Zhigang, President of SZSN, ''Such polices give our seed product enterprises a chance to develop. All of these are promote the competitiveness of China's seed and feed industry in the international market.''

About Shandong Zhouyuan Seed and Nursery Co., Ltd.

Shandong Zhouyuan Seed and Nursery Co., Ltd. (SZSN) is a large-sized hi- tech corporation, which is incorporated in the State of Delaware under the laws of United States. SZSN, through its operating subsidiary, Shandong Zhouyuan Seed and Nursery Co., Ltd. (''Zhouyuan''), to grow, produce and market the seeds with high starch content for use in industrial food production in China. Zhouyuan was organized in 2001 in China under the laws of the People's Republic of China, which is located in Laizhou, Shandong province. Its business covers the agriculture seeds development and distribution over more than twenty provinces in China. Now Zhouyuan ranks as one of the top three seed producers in the Laizhou District, which is known as the ''Seed Valley of China''.

Safe Harbor

A number of statements referenced in this Press Release, and in our website, are forward-looking statements, which are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, and goals, assumption of future events or performance are not statements of historical fact and may be ''forward-looking statements.'' Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this Release may be identified through the use of words such as ''expects,'' ''will,'' ''anticipates,'' ''estimates,'' ''believes,'' or statements indicating certain actions ''may,'' ''could,'' or ''might'' occur. Such statements reflect the current views of Shandong Zhouyuan Seed and Nursery Co., Ltd. with respect to future events and are subject to certain assumptions, including those described in this release. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products, services, and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.

Shandong Zhouyuan Seed and Nursery Co., Ltd. does not undertake any responsibility to update the ''forward-looking" statements contained in this news release.

Specialized in: Shandong Zhouyuan Seed - Nursery
URL: http://www.chinaseedcorp.com
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