China Organic Agriculture, Inc. is among the largest producers of organic rice in China. The Company controls all aspects of the process from seeds to planting and processing, R&D and sales with an extensive sales network located in the major cities in China.

The Company has experienced significant growth since its inception in 2002, and as an agricultural company is exempt from Chinese taxes. The quality of China Organic’s products result in the ability to command and receive prices 15% higher than the competition reaching gross margins as high as 40%.

China Organic has in excess of 6260 acres dedicated to green and organic rice. The irrigation system is fed from the Nen River, one of the last unpolluted rivers in China, and no chemicals or fertilizers are used in the process. The Company’s flagship brand, ErMaPao, has won several quality awards and holds the highest organic certification.

Company Forecasts Revenues and Earnings of Approximately $45 Million and $14 Million for 2007

Several key sales agreements signed by the Company have led to the sharp increase in forecast income. This has allowed the China Organic to significantly increase production and get more of its flagship product, green and organic rice, to market quickly.

The Company is firmly committed to expanding operations and increasing earnings and has already set in motion several initiatives to expand capacity and extend its reach into other fast-growing economies in Asia.

Given the progress the Company has made, the Chairman of China Organic Agriculture stated in a news release dated December 5, 2007: “At this time we are looking at several more initiatives that will allow our Company to continue a pattern of strong growth for several years to come. And, we expect to announce more positive developments in the coming weeks,”

”We are sure that our shareholders will be pleased with our current and future developments. It is our firm intention to move to a senior exchange such as AMEX or the NASDAQ.”

China Organic has 3.6% and 7.1% Market Shares, respectively

The extraordinary demand created by China and its impact on the world economy is well-documented with soaring prices for crude oil and other vital resources. Behind that industrial growth are burgeoning middle and upper classes, the fastest-growing segments of China’s population. This expanding group of consumers demands ever-higher standards of foods and services – perhaps none more so than rice, the most important source of energy for the nation’s 1.3 billion citizens.

China Organic Agriculture has already established significant brand loyalty among the nation’s affluent with high-quality, fully-certified organic rice products that are already generating significant revenues and net profits from China’s estimated $13 billion green foods market.

The Company is among the largest producers of green and organic rice in China with an expected 2007 green rice output of approximately 85,000 tons and 3,600 tons of organic rice output. The Company commands a 3.6% percent share of the organic rice market and a 7.1% share of the green rice market, and unlike its competitors, controls all aspects of the process from seeds to planting and processing, R&D and sales.

China Organic’s proprietary, 20,000 square meter processing factory has an annual production capacity of 30,000 tons. The Company also has an extensive sales network located in China’s major cities.

Growth in the organic rice market is dramatic, with sales up 50% from 2006-2007 due to rapidly changing demographics. The premium (increasing) prices for organic products are being realized as China’s growing affluent classes seek healthier food choices. COA has experienced significant growth since its inception in 2002 and has put solid plans in place to markedly expand revenues and increase shareholder value. The quality of the Company’s products results in the ability to command and receive prices 15% higher than comparables for organic rice and 10% higher for green rice.

China Organic has in excess of 6,260 acres dedicated to green and organic rice. The irrigation system is fed from the Nen River, one of the last unpolluted rivers in China, and no chemicals or fertilizers are used in the process. ErMaPao, the Company’s flagship brand, has won several quality awards, holds the highest organic certification and is the most popular rice brand in the country.

Government intervention in the price of rice is diminishing and price is now determined by the market. Further to the favorable demographics is the commodity’s supply and demand picture, particularly for organic rice. Demand for all rice has outstripped supply for the last half decade and is expect to continue. Additionally, rice products that originally sold only regionally are finding significant markets in other parts of the country.

While the Company certainly plans to expand its markets within China, the experienced management team also intends to increase exports at a rate of 2:1 domestic versus international to significantly increase sales and reduce market risk. Plans are currently underway to increase production capacity of green and organic rice.

China Organic has the depth of management and the capital to realize it’s mandated goal of becoming the leading organic agriculture company within this rapidly growing sector in China and indeed, globally within the next five years.

Flagship Products

China Organic’s flagship product is the “ErMaPao” brand of organic and green rice that is natural, healthy and tastes great. No chemicals or fertilizers are used in the process. ErMaPao has won several quality awards, holds the highest organic certification and is the most popular rice brand in the country.

The ErMaPao brand has been recognized as "AA status" products by the China Green Food Development Center. In 2005, ErMaPao won the title of “Consumer Recognized Famous Brand in the Chinese Market” from the China Association for Quality Inspection, and in August 2006, ErMaPao was referred to as a “Famous Brand Product” at the 6th China Changchun International Agriculture and Food Fair.

ErMaPao brand organic agricultural products are available in gift packaging and supermarket packaging. It is also available in a full rage of sizes, including 1KG, 2KG, 2.5KG, 5KG, 7.5KG and 10KG. The company only employs environmentally-friendly production methods with no harmful materials used during the shipping, selection, production, cleaning, storage, and packaging of products.

Outstanding 2007 Financials (ending 12/31)

December 3, 2007 -- China Organic Agriculture Forecasts Record Revenue and Earnings for 2007

China Organic Agriculture, Inc. (OTCBB:CNOA), announces increased revenue and earnings forecasts for 2007. The upwardly revised guidance projects revenues to increase to approximately $45 million for calendar year 2007, a 500% increase over the $9 million for the comparable period the previous year.

The Company has also raised projected earnings to more than $14 million, an estimated $0.29 in earnings per share (for calendar year 2007), an increase of approximately 408% over the $3.43 million for the comparable period in 2006.

This new guidance reflects benefits expected as a result of corporate initiatives to increase productivity as well as a series of recently signed strategic cooperative agreements with major retail system distribution partners throughout China.

The updated financial forecast follows CNOA’s recently announced production and distribution partnerships with Nanjing Suguo Supermarket, Beijing Hualian Supermarket, Changchun Huaxing Ltd, Changchun Qinghai Oil and Grain Ltd, Songyuan Oil and Grain Ltd. Those new contracts are anticipated to generate a total of $21 million in revenues for the period.

China Organic Agriculture has posted approximately 100% growth for the trailing four years.

Worldwide Demand

The United Nations (UN) International Year of Rice 2004 campaign recognized the importance of rice to the world’s health and economies, as well its potential for reducing hunger for nearly one billion undernourished people. The importance of rice as a primary food source is drawn from an understanding that rice-based systems are essential for food security, poverty alleviation and improved livelihoods.

Rice is the staple food of over half of the world's population. In Asia alone, more than 2 billion people obtain 60 to 70 percent of their energy intake from rice and its derivatives; it is the most rapidly growing food source in Africa and is of significant importance to food security in an increasing number of low-income food-deficit countries.” The UN goes on to report that “in the developing world as a whole, rice provides 27 percent of dietary energy supply and 20 percent of dietary protein intake.”

Some key statistics provided by the UN regarding global and Chinese rice production and consumption include:

• Global rice production was over 440 million tons at the end of the 1990’s with developing countries producing approximately 95% of this output, including China and India which accounted for over 50% of this production.
• With a 13% share, China is the 3rd leading rice exporter, supplying a trade market that grew at 7% per year in the 1990’s to reach 28 million tons annually.
• 80% of the world’s rice is grown by small scale farmers in low-income and developing countries.
• Rice production and associated activities provide income for over 50 million Chinese families.

China Organic Agriculture (OTC BB: CNOA) targets not only those who depend on rice to live, but those whose rice consumption helps them to live well. With average incomes rising by 4.5 times from 1998 to 2005, there is a rapidly growing Chinese middle and upper class that has the ability and presumably the inclination to consider more carefully the nutritional content and safety of their diets as well as the environmental impact of their consumption.

The Agricultural Marketing Resource Center (AgMRC) reports that organics grew at an annual rate of nearly 20% since 2000. The AgMRC reports further that the United States and European Union consume 95% of the global organic food market, implying that the Chinese organic market clearly is only just getting started and is poised for robust near and longer term growth.

• Demand for rice, particularly organic, is far outstripping supply for the foreseeable future
• Demographics in China shows a rapidly-growing, health conscious affluent upper class
• Rice is priced within global free market forces (no government pricing controls)
• Since 2002, China has moved from 45th to 2nd worldwide in the # of hectares under organic mgmt.
• No tax policy exists for agriculture in China
• More land under organic horticulture than any other country

MANAGEMENT

Xiao Huizhi, Chairman of the Board

Xiao Huizhi currently serves as Board Chairman of Ermapao Green Rice Co. Ltd. As a Senior Agronomist, he has extensive experience in industrial operations management, integrating rice planting, processing and sales. An adept and dynamic leader, he possesses proven enterprise management leadership skills. While engaged in agricultural production management from 1985 to 1995, Xiao introduced superior rice varieties that enabled double-digit increases in grain output, resulting in the honor of being chosen as a "county-level model worker". From 1995 to 2001 he served as General Manager of Guangsha Construction Co., driving 100% profit growth with multiple projects chosen as "superior projects of city and county". In 2002, he founded Songyuan Ermapao Green Rice Co. Ltd. and vigorously promoted the planting of green rice, enabling a 30% output increase and a 60% sales income increase. Xiao Huizhi is a graduate of Jilin Agricultural University.

Lin Jian, CEO

Lin Jian has extensive experience in financing, operations and enterprise administration. Additionally, he has deep ties with China’s agriculture policy administration. He has proven himself as a highly-strategic leader and is well known and highly-respected in the industry. Lin Jian’s leadership has been a major component of China Organic Agriculture’s quick development, with the Company growing at more than 100% each year.

Hu Xian Hua, CFO

Hu Xianhua is a graduate of Jiangxi Finance and Economy Management Institute with an emphasis on Finance Accounting. With 10 years of experience as a C.P.A., he has a thorough knowledge of China’s accounting and finance system, local and state taxation law, and international accounting legislation. He is known for his advanced finance management capabilities.

Zhao Ping, Secretary

The executive secretary of COA is Zhao Ping, a graduate of the China Communist Party School with a major in economic management with an occupational title of economic engineer. He is well-versed in secretariat work in China and has profound knowledge in the standardization of the Company’s intra work flow.

Jin Zhouzhe, Independent Director

Jin Zhouzhe, a graduate of Yanbian Agriculture College, is an accredited senior agronomist in the Songyuan Agricultural Specialist Group of Jilin Province and has been an independent director and consultant to Songyuan Ermapao Green Rice Co. Ltd. since 2005. With a career beginning in the mid-1960's, Jin Zhouzhe has been a pioneer in the field of rice breeding with several acclaimed publications and awards for his work in developing and popularizing new, high quality breeds. In addition, he has received numerous awards and honors for his leadership and outstanding achievments in science and technology.

Ma Jingyong, Independent Director

Mr. Ma Jingyong is a professor and researcher at Jilin Agriculture University where he studies new rice breeds with high quality, high yield and disease resistance. Since the beginning of 2005 he has been a consultant to Ermapao Green Rice Co. Ltd and more recently an independent director of China Organic Agriculture. Ma Jingyong has long been engaged in the science of rice breeding and has made adward-winning contributions in new, award-winning, high-quality, high-yield rice breeds.