Contact Information: Contacts: In China: Matt Feng, Investor Relations China Tel: 86 10 8785-9020 matt.feng@agriacorp.com In the U.S.: David Pasquale, Senior Vice President U.S. Tel: +914-337-1117 david.pasquale@agriacorp.com
Agria Confirms No Disruptions to the Business; Agreements With P3A Remain Valid and Enforceable
| Source: Agria Corporation
BEIJING--(Marketwire - April 8, 2008) - Agria Corporation (NYSE : GRO ) (the "Company" or
"Agria"), an innovative China-based agri-solutions provider, today
confirmed that there have been no disruptions to its business due to Zhixin
(Frank) Xue's recent resignation from his COO and director positions at
Agria. In addition, the Special Committee of the Board of Directors of
Agria continues its work on this matter. Mr. Xue and other members of
management team of Primalights III Agriculture Development, Co., Ltd.
("P3A"), Agria's primary operating entity in China, are continuing to work
at P3A.
The Company has been informed by its PRC counsel that the Power of
Attorney, Exclusive Call Option Agreement, Exclusive Technology
Development, Technical Support and Service Agreement, Exclusive Consultancy
Service Agreement, Proprietary Technology License Agreement and Letter of
Undertaking entered into between Agria's wholly-owned subsidiary in China
and P3A and/or its direct equity owners, as applicable, are valid, binding
and enforceable under PRC law in accordance with their terms. In addition,
P3A is permitted to conduct its business within the scope and terms
specified in the licenses and permits granted to it. The Company has been
advised by its PRC counsel that the PRC counsel has no reason to believe
that any regulatory body would consider modifying, suspending or revoking
such licenses and permits solely because of any P3A employee's resignation.
Based on the PRC counsel's advice, the Company believes that no employee at
P3A has any legal right to take P3A's licenses and permits with him or her
in the event such employee resigns from P3A.
About Agria Corporation
Agria Corporation (NYSE : GRO ) is an innovative China-based agri-solutions
provider focusing on research and development, production and distribution
of three different types of upstream agricultural products. Its diversified
portfolio of products comprises corn seeds, sheep breeding and seedlings,
including proprietary products developed through its own research and
development capability. The company has access to approximately 27,000
acres of farmland in seven provinces and its extensive distribution network
provides direct or third party distribution in 14 provinces. For more
information about Agria Corporation, please visit www.agriacorp.com.
Safe Harbor Statement:
This announcement contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," "confident" and
similar statements. Agria may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and Exchange
Commission on Forms 20-F and 6-K, etc., in its annual report to
shareholders, in press releases and other written materials and in oral
statements made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements about
Agria's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A
number of important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, those risks outlined in
Agria's filings with the U.S. Securities and Exchange Commission, including
its Form F-1/A filed on November 2, 2007. All information provided in this
press release is as of April 8, 2008, and Agria does not undertake any
obligation to update any forward-looking statement, except as required
under applicable law.