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Bodisen Biotech, Inc. Interim Results for the year ended 30 June 2006 Review and Extracts of the Form 10-KSB as required by the Securities and Exchange Commission

Second Quarter Revenues Grow 95% Year-over-Year to $16.4 Million; Second Half of 2006 Growth Outlook Positive with Company Expansion

The following are some of the key financial highlights for the quarter ended June 30, 2006 from the company¡¯s Form 10-Q filed with the Securities and Exchange Commission (SEC) today:


? Revenues grew 95% to $16.4 million from $8.4 million in the same period of 2005.
? Gross Profit increased to $6.4 million from $3.3 million in the same period last year.
? Net Income grew 118% to $5.9 million from $2.7 million in the same period of 2005.
? Fully diluted EPS increased to $0.32 from $0.17 in the same period last year.
? New fertilizer supply contracts for 200,000 metric tons signed to expand into Xinjiang Province.

Karen Qiong Wang, Chief Executive Officer of Bodisen commented, ¡°As we expected, we experienced another record quarter of both top and bottom line growth during the second quarter of 2006. Our results for the quarter and for the first half of 2006 reflect the strong demand for our environmentally friendly, high quality, high yield organic fertilizer solutions and the growing awareness of the Bodisen brand among China¡¯s farmers. The increased popularity of the Bodisen brand has allowed the company to demand premium pricing, a clear indicator that our quality products remain in high demand.¡±

Bodisen achieved record revenues of $16,382,189 for the second quarter of 2006, up 95% from the prior year period when the company reported revenues of $8,416,805. The growth in revenue was primarily attributable to the increase in the customer base as the company continued to aggressively market their products and the growing awareness in the agricultural industry in the markets in which they do business of the efficacy of their products. The Bodisen brand name has become synonymous with proven higher crop yields. The completion of the new factory in early 2005 also enabled the company to meet the growing demand for all of its products.

Bodisen achieved a gross profit of $6,411,936 for the second quarter of 2006, up 97% from the prior year period gross profit of $3,255,664. Gross margin increased to 39.1% in the second quarter of 2006 from 38.7% in the same year ago period. The increase in gross margin was primarily attributable to the increase in the prices of main products. During the first half of 2006, the company raised its prices two times.

Bodisen incurred operating expenses of $1,218,207 for the second quarter of 2006, an increase of 394% from $246,477 for the second quarter of 2005. These operating expenses were primarily related to increased sales and marketing costs involved in achieving the 95% year-over-year sales increase during the quarter.

Bodisen achieved net income of $5,879,678 or fully diluted EPS of $0.32 in the second quarter of 2006 compared to net income of $2,692,014 or fully diluted EPS of $0.17 in the same quarter last year. The increase was attributed to a successful targeted marketing campaign to further saturate its existing markets and to also further penetrate new markets and regions throughout China.

¡°This has been an exceptional year so far for Bodisen and our growth outlook for the second half of 2006 and 2007 is even more exciting given our recent expansion announcement into Xinjiang. Xinjiang represents an outstanding 25% of China¡¯s arable land and we view this expansion as a very important milestone for the company in cementing its future growth prospects,¡± Ms. Wang stated. ¡°We initially signed 200,000 metric tons of new fertilizer supply contracts for delivery in 2007, representing approximately $45 million contract value. Although this dollar amount is quite significant, the Xinjiang region will continue to be a major source of growth for 2007 and beyond given the fact that these orders represent a mere 10% of local fertilizer demand. The market opportunity here remains largely untapped and Bodisen is well-positioned to benefit as the first company providing environmentally friendly bio fertilizers to establish a presence in this region on such a large scale¡±

Continuing to comment on the company¡¯s outlook, Ms. Wang concluded, ¡°With solid visibility, we are on track to double our revenues in 2006 from what we achieved in 2007. And with contracts now signed for 2007, we expect this momentum to continue over the next few years. As end user customers continue to shift from chemical fertilizers to environmentally friendly, higher crop yield bio compound fertilizers, Bodisen will continue to reap the benefits and dominate this market as a leading premium fertilizer brand throughout China.¡±
About Bodisen Biotech, Inc.
A Delaware company, Bodisen is headquartered in the city of Yang Ling, Shaanxi Province, 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. These products address grains, vegetables, and fruit crops. 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.


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