China Agro-Technology Announces Plans for 2 Million Metric Ton Biodiesel Refinery Plant in China

SINGAPORE, March 10 /PRNewswire-FirstCall/ -- China Agro-Technology Ltd. ("CAT") OTCBulletinBoard: CAGTF today announced that it has signed a Memorandum of Understanding with the Beihai city government on February 23, 2008 to set up a biodiesel refinery plant in Beihai, Guangxi Province in the People's Republic of China.

CAT expects to invest up to $200 million over the next four years to operate a plant which, at full capacity, can produce 2 million metric tons per annum. CAT has a target completion timeline for the factory of six months from the date of commencement.

Using present market prices, the net profit for every metric ton of oil would be US $350. Therefore, beginning in the 1st Quarter of 2009, CAT estimates that it can produce a minimum of 80,000 to 100,000 metric tons, yielding a net profit of US$30-40 million assuming current production capabilities.

CAT Founder & Chairman, Dr. Harry He noted that "Biodiesel has the highest demand of any commodity in China. To meet the 2020 B10 Kyoto Protocol requirement, China needs 12,400,000 tons of biodiesel in 2008. However in 2007, the supply in China was less than 1 million tons. Therefore, the product from this biodiesel plant will be a very important part of China's effort to meet the requirement."

Beihai is located between Guangxi and Guangdong Provinces at the southern part of China, facing Southeast Asia. Beihai Harbor, located at the northeastern bank of Beibu Gulf, is a deep-sea port with the capacity to handle vessels up to 300,000 tons. Beibu Gulf is one of the Central Government recognized Economic Development Zones granted special benefits inter alia:

    (a) Allocation of 1000 mu (66.6ha) of industrial land with full
        infrastructure and facility at a special discount;
    (b) Attractive tax incentives including tax free for the first 2 years and
        50% tax reduction for the following 3 years;
    (c) The right to apply for a subsidy of RMB1,300 (est. USD180) for every
        ton of biodiesel produced.

Dr. He added, "because of CAT's advanced leaf growing technology, coupled with the good suitable land environment, we believe we will be one of the most essential suppliers of Jatropha crude oil. More importantly, however, by being able to produce our own refined biodiesel at the Beihai facility, CAT also will be in a strategically important position in the supply of biofuel. We are currently forming our team of professionals and consultants to execute the plan."

About China Agro-Technology Holdings, Ltd

China Agro-Technology Holdings, Ltd ("CAT") is an ecologically sustainable agricultural technology enterprise that aims at promoting a global reforestation program, generating environmental rehabilitation and serving the acute demands for resource products. CAT is principally engaged in the ecological forestry business and agricultural technology, production and sale of quality seeds and marketing of agro-technology know-how. CAT's strength is its group of highly innovative research scientists and agronomists who specialize in the R&D of agriculture and intelligent computer non-tube plant propagation technology. Driven by agro-biotechnology, CAT is able to achieve higher output with a shorter growth period. With the planting of Jatropha, CAT will broaden its revenue sources and increase its role in the biodiesel markets and "going green" efforts. CAT believes that partnering countries could leverage on its genetic engineering plantation technologies to maximize agriculture outputs and generate economies of scale while promoting an ecologically sustainable land environment.

Safe Harbor Statement: Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation.