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Bodisen Biotech Reports Record Earnings Per Share of $0.56 in 2005, Net Income Up 75%, Revenues Up 91%
Tuesday March 28, 8:00 am ET

Excluding One-Time Financing Related Accounting Charges, Bodisen Well Positioned for Substantial Earnings Growth in 2006

NEW YORK--(BUSINESS WIRE)--March 28, 2006--Bodisen Biotech, Inc., (AMEX:BBC, London AIM:BODI, website: /) the first China based environmentally friendly bio fertilizer company listed on a US stock exchange, and dually listed in London, today announced that it achieved record earnings growth from the production and sale of its organic fertilizer and pesticide products in 2005.

The following are some of the key financial highlights for the year ended December 31, 2005 from the company's Form 10-K filed with the Securities and Exchange Commission (SEC) today:

2005 FINANCIAL HIGHLIGHTS

  • Revenues grew 91% to approximately $31.0 million from $16.2 million in 2004.
  • Gross Profit increased to $11.5 million, from $6.6 million for the prior year.
  • Comprehensive Income of $11.9 million, up 133% from same period in 2004.
  • Net Income, prior to one time financing related accounting charges of approximately $1.4 million, grew 75% to approximately $8.8 million, or $0.56 per fully diluted share, compared with net income of $5.0 million, or $0.33 per fully diluted share for 2004.

Karen Qiong Wang, Chief Executive Officer of Bodisen commented, "We're very pleased with Bodisen's continued substantial growth in 2005. Our results for the year reflect the growing demand for environmentally friendly, high quality, high yield organic fertilizer solutions and the increased strength of the Bodisen brand among China's farmers."

REVENUES

Bodisen achieved record revenues of $30,975,350 for the year ended December 31, 2005, up 91% from the prior year when the company reported revenues of $16,225,896. The growth in revenue was primarily attributable to the company's completion of a larger manufacturing facility in March 2005 and the success of its marketing efforts, which resulted in Bodisen increasing the number of new contracts and retaining existing customers.

NET INCOME

Including the impact of one-time financing related accounting charges, Bodisen reported net income of $0.48 per share on a fully diluted basis.

2005 OPERATIONAL HIGHLIGHTS

  • Finished construction of new manufacturing facility at the company's current location, doubling its organic fertilizer production capacity.
  • Received research coverage from New York Global Securities.
  • Began trading on the American Stock Exchange.
  • Made a strategic investment of $2.85 million in China Natural Gas Company (OTCBB: CHNG - News), the first China-based natural gas public company in the U.S. capital market. In 2005, China Natural Gas achieved record year-over-year sales growth of more than 400% and profitability. Bodisen currently owns more than 2 million shares of CHNG.
  • Received additional two-year income tax exemption from the People's Republic of China.
  • Signed $43 million in contracts for 2006 product delivery, exceeding total revenues for 2005.

MANAGEMENT DISCUSSION AND 2006 OUTLOOK

"Demand for organic fertilizers and pesticides continue to grow at a high rate," said Ms. Wang. "Bodisen's more than 60 products provide farmers throughout China with a viable, economically attractive solution that are competitively priced compared to traditional chemical fertilizer products. At the same time, our products require less time to apply, create up to 35% higher crop yields, improve soil conditions and increase potential revenues for farmers who can sell their products as 'certified organic green foods,' which typically achieve retail prices of 50-200% higher than products that are not considered 'certified organic green foods.'"

"In 2006, we plan to continue to aggressively expand our market reach, which now extends into 20 provinces throughout China. We will continue to expand our marketing channels and production capabilities to meet customer demand. The launch of our new raw materials product line, Mancozeb, by mid-2006 will further enhance our sales and profitability. In addition, we expect to have two new production facilities fully operational by the 2007 March planting season, giving us enough production capacity to further extend our market reach," Ms. Wang said.

Commenting on the company's outlook for 2006, Ms. Wang continued, "With a favorable market environment, strong balance sheet, diversified product lines, sales contracts with more than 150 wholesale distributors, and strong brand recognition and local presence among our loyal target customers, we expect to continue to achieve substantial revenue growth and further enhance shareholder value in 2006, while maintaining net income margin in the 30% range."

About Bodisen Biotech, Inc.

A Delaware company, Bodisen is headquartered in Shaanxi, China's agricultural hub. The Bodisen brand is a highly recognized fertilizer brand in China. Its environmentally friendly "green" products support the mandate of the Chinese government to increase crop yields for the purpose of decreasing China's dependency on food imports. Utilizing proprietary agricultural technologies, Bodisen sells over 60 packaged products, broken down into four product categories: Organic Compound Fertilizer; Organic Liquid Fertilizer; Pesticides & Insecticides, and agricultural raw materials. Bodisen's organic fertilizers can be absorbed by plants within 48 hours and enrich soil conditions without the damaging effects associated with chemical fertilizers. These products address grains, vegetables, and fruit crops and have been proven to increase crop yields by 10% to 35% while being 100% environmentally friendly. Among China's population of 1.3 billion, approximately 900 million are farmers whose incomes depend on their crop yields. With approximately 600 (and growing) nationwide distribution centers, Bodisen has experienced rapid growth in its existing business.

BODISEN HAS RESEARCH COVERAGE IN NEW YORK AND IN LONDON

Wall Street firm New York Global Securities, Inc. ("NYGS", http://www.newyorkglobal.com/) has research coverage for Bodisen. NYGS' parent company New York Global Group (http://www.nyggroup.com/) has a significant China presence and is one of the largest US firms in China in the financial services sector. London investment bank Charles Stanley (http://www.charles-stanley.co.uk/), a member of the London Stock Exchange since 1852, provides research coverage for Bodisen in London.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Bodisen Biotech, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.


Contact:
The Piacente Group, Inc.
Investor Relations:
Debra Chen, 212-481-1907
debra@thepiacentegroup.com

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Source: Bodisen Biotech, Inc.

 

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