AgFeed Industries to Acquire 4 Producing Commercial Hog Farms, Raises Total Hog Farm Acquisition Targets, Affirms 2008 Earnings Guidance

AgFeed Discusses Business Outlook and Comments on Recent Market Activities

NEW YORK, NY–(EMWNews – August 25, 2008) – AgFeed Industries, Inc. (NASDAQ: FEED), the

largest commercial hog producer and the largest premix feed company in

China, today announced that the Company has reached agreements to acquire 4

producing commercial hog farms in South China. AgFeed expects these

acquisitions to close in early September. All of the Company’s acquired hog

farms are immediately accretive to earnings. AgFeed is also in discussions

with multiple other farms as potential acquisition targets.

AgFeed has sufficient cash on hand, a strong balance sheet as well as

strong cash flows from operations to fund its current acquisition plans in

2008. In addition to these four farms, AgFeed intends to acquire no less

than 5 to 10 additional producing hog farms before the end of 2008, to be

funded from current cash flows. All of its hog farm acquisitions are

immediately accretive to earnings.

Positive Business Outlook, Affirms 2008 Guidance

AgFeed currently experiences favorable market environment in its business

— declining raw materials input costs and greater operating efficiencies

from operations. AgFeed affirms previously reported 2008 adjusted net

earnings per share guidance of between $1.08 and $1.20 per share. AgFeed’s

recent appointment of a US hog industry executive Gerry Daignault as Chief

Operating Officer adds depth to AgFeed’s already strong management team.

Gerry Daignault, AgFeed’s Chief Operating Officer, commented: “AgFeed is a

well managed, leading commercial feed and hog producer in China. We are

committed to product excellence and constant improvement in deriving

greater margins. We are also very excited with the current progress that we

have made in our strategic discussions with several global players. AgFeed

is on track to further consolidate its market leader position in a highly

profitable market environment in China. As I return to the US early this

week, I look forward to continued communications with our shareholders and

industry executives.”

Commenting on Recent Unusual Market Activities

AgFeed has received numerous calls from concerned shareholders over the

recent stock activity. AgFeed is not aware of any negative events that

could impact its fundamental business or financial projections. AgFeed has

noticed however significant discrepancies between the shares that appear to

be listed the electronic DTC system and the shares that actually exist on

the shareholder records held by AgFeed’s transfer agent — potentially as a

result of heavy naked short selling in FEED. In contrast to an ordinary

short sale where the seller borrows a stock and sells it, with the

understanding that the loan must be repaid by buying the stock in the

market (hopefully at a lower price), in a naked short sale, the seller

doesn’t actually borrow the stock, and fails to deliver it to the buyer.

Last month, the Securities and Exchange Commission (SEC) said that it wants

to ban the practice of naked short selling, and it announced a temporary

ban on naked short sales of certain company shares. The SEC said that the

practice is sometimes used to manipulate the price of a company’s stock.

SEC officials said that this procedure may have been used to drive down

shares of various companies’ price. The seller continuously hits the bid

price and seeks to buy back shares from nervous shareholders who may sell

simply because of a declining market price. In this regard, AgFeed believes

that it may be a victim of this practice and has duly notified regulators,

including the SEC. Meanwhile, shareholders may contact their stock brokers

and request that their stocks not be used to assist short sellers.

Songyan Li, Ph.D., AgFeed’s Chairman, commented: “Contrary to false market

rumors, AgFeed’s management and board members have not sold one single

share of our stock. Our role as managers is to execute on our business plan

and continue to deliver superb financial results. Our responsibility as

corporate officers is to ensure that the best interest of our shareholders

is protected and not continue to be hurt by stock manipulators. AgFeed is

fully cooperating with regulatory agencies and shall provide full

assistance in any possible investigation of these market manipulative

actions.”

About AgFeed Industries, Inc.

NASDAQ Global Market listed AgFeed Industries (www.agfeedinc.com) is a US

company with its primary operations in China. AgFeed has two profitable

business lines — premix animal feed and hog production. AgFeed is China’s

largest commercial hog producer in terms of total annual hog production as

well as the largest premix feed company in terms of revenues. China is the

world’s largest hog producing country that produces over 600 million hogs

per year, compared to approximately 100 million hogs in the US. China also

has the world’s largest consumer base for pork consumption. Over 65% of

total meat consumed in China is pork. Hog production in China enjoys income

tax free status. The pre-mix feed market in which AgFeed operates is an

approximately $1.6 billion segment of China’s $40 billion per year animal

feed market, according to the China Feed Industry Association.

Safe Harbor Statements

All statements in this press release that are not historical are

forward-looking statements made pursuant to the “safe harbor” provisions of

the Private Securities Litigation Reform Act of 1995. There can be no

assurance that actual results will not differ from the company’s

expectations. AgFeed’s actual results may differ from its projections.

Further, preliminary results are subject to normal adjustments. You are

cautioned not to place undue reliance on any forward-looking statements in

this press release as they reflect AgFeed’s current expectations with

respect to future events and are subject to risks and uncertainties that

may cause actual results to differ materially from those contemplated.

Potential risks and uncertainties include, but are not limited to, the

risks described in AgFeed’s filings with the Securities and Exchange

Commission.