Yongye International, Inc. Begins Construction of New Production Facility

BEIJING, May 10, 2010 /PRNewswire via COMTEX/ -- Yongye International, Inc.

(Nasdaq: YONG), ("Yongye" or the "Company") a leading manufacturer, developer and distributor of Shengmingsu brand plant and animal nutrient products in the People's Republic of China (PRC), today announced that the Company has started the construction of a new production facility in Wuchuan County, Hohhot Municipal City, Inner Mongolia Autonomous Region.

The Company's current production facility is operating at near full capacity in order to meet market demand. The new production facility will be capable of producing 20,000 tons per annum of the Company's Shengmingsu liquid plant nutrient product and 10,000 tons per annum of the Company's Shengmingsu powder animal nutrient product. The new facility is expected to be operational by the end of the third quarter of 2010.

Upon completion, the new facility will expand annual production capacity for Yongye's Shengmingsu plant nutrient product from 10,000 tons per annum currently to 30,000 tons per annum, and that for its Shengmingsu animal nutrient product will increase from 1,000 tons per annum currently to 11,000 tons per annum.

Capital expenditures for the new production facility are expected to be between $15 million to $20 million. The Company plans to use proceeds from its December 2009 financing towards the construction.

"Due to very strong customer demand for our Shengmingsu agricultural nutrient products, our current production facility in Hohhot has reached its maximum capacity," stated Mr. Zishen Wu, Chief Executive Officer of Yongye International. "As a result, our new production facility is a crucial investment for us as we seek to continue to drive sales via our extensive, growing, and highly scalable national distribution network. Furthermore, we believe that our vertical integration and capacity expansion initiatives will lead to gross margin improvement once completed. " About Yongye International, Inc.

Yongye International is a Chinese organic agricultural nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye markets two lines of organic nutrient products: a liquid nutrient product which is sprayed on plants and a powder nutrient product which is added to animal feed. Both products are sold under the brand name "Shengmingsu," which means "life essential" in Chinese. The Company's patented and patent pending formulas and proprietary extraction processes allow it to create products that increase crop yields and improve the health of livestock.

The Company sells its products to provincial or regional distributors, who then channel those products to a carefully selected network of independently-owned Yongye branded stores in China. For more information, please visit the Company's website at http://www.yongyeintl.com .

Safe Harbor Statement This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Contact: Yongye International, Inc.

Mr. Larry Gilmore-VP of Corporate Strategy Phone: [phone] x8880 Email: [e-mail] CCG Investor Relations, Inc.

Mr. Crocker Coulson, President Phone: [phone] Email: [e-mail] Athan Dounis, Account Manager Phone: [phone] Email: [e-mail] SOURCE Yongye International, Inc.

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