China Agritech has created a plan for expansion that will allow the Company to grow dramatically over the next several years. First, the Company has, and will continue to, prove the safety and reliability of its products. The historically highly fragmented nature of the Chinese fertilizer industry has created a void in the reliability of fertilizer products nationwide. This lack of consistency between products creates an opportunity for management to position the company for growth by collaborating with academic and governmental institutions in order to attest to the quality of China Agritech’s current product offerings as well as continue to develop new compounds to better meet the changing needs of China’s agricultural community. Secondly, by accessing the public markets in the United States, China Agritech will have the ability and capital to launch an extensive advertising campaign to educate the farmers on the benefits of its liquid organic compound products, and will be able to either acquire or build facilities to meet the growth in demand. This foundation for growth will allow the Company to expand its distributions outside its traditional base in Northeast China and capture a larger market share in areas that it already services.

In order to meet the demand fueled by the factors listed above, the Company intends to build or acquire 10 factories throughout China over the next three years. The factories will be strategically located in order to serve all of the agricultural areas in the PRC effectively. By opening additional factories, the Company will be able to tailor its compounds to meet the local needs of the farmers. China