AGRANA Launches Second Joint Venture for Juice Concentrate in China

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Wien (euro adhoc) - AGRANA Group and Yantai North Andre Group (YNA) have signed
an agreement to form a second joint venture. AGRANA and YNA will set up the
Yongji Andre Juice Co. Ltd., based in Yongji, China, for the production of apple
juice concentrate. Each partner will hold a 50% interest in the new company. The
transaction is subject to the approval of the respective antitrust authorities.
The plant in Yongji, with a processing capacity of 140,000 tonnes of apples per
year, started production in July 2007. The joint venture partners are planning
to double the plant´s capacity by 2009.

"This second joint venture in China is another important strategic step toward
growing our business segment Fruit on a global basis. It strengthens AGRANA´s
presence in the fast growing Chinese market and consolidates our strategic
alliance with Yantai North Andre", Johann Marihart, CEO of AGRANA Group,
commented on the transaction. "The Chinese production joint ventures perfectly
complement our distribution activities. While Yantai North Andre is the market
leader in "sweet" Chinese apple juice concentrate in the United States, AGRANA
is one of the leading apple and berry juice concentrate producers in Europe",
Marihart said.

AGRANA and Yantai North Andre have successfully operated the joint venture
Xianyang Andre Juice, located in Xianyang, China, for the production of "sweet"
apple juice concentrate, since 2006. The company, with a headcount of approx.
180, is currently increasing its capacity by 50%.

In addition to its own European concentrates, AGRANA also distributes apple
juice concentrate produced by Xianyang Andre Juice in Europe. The concentrate
produced in the new plant will, like that already produced in Xianyang, fulfil
the high quality standards of the European market, which are defined by the EU´s
Code of Practice for Evaluation of Fruit and Vegetable Juices (A.I.J.N.).

As Chinese apple juice concentrate lacks the acidity typical of European
concentrates, it is classified as "sweet". The joint venture partners believe
that there is further global sales potential for both "sweet" and "sour"
concentrates.

AGRANA in China
AGRANA owns a fruit preparation plant North of Beijing and runs two sales
offices in Beijing and Shanghai respectively. After the closing of the Yongji
transaction, AGRANA and YNA will jointly own two apple juice concentrate plants
in China.

This press release is available in German and English on the Internet at
www.agrana.com.

Further inquiry note:
AGRANA Beteiligungs-AG
Mag. Maria Fally
Investor Relations
Tel.: +43-1-211 37-12905
e-mail:[email protected]

Mag. Ulrike Pichler
Public Relations
Tel.: +43-1-211 37-12084
e-mail:[email protected]

end of announcement euro adhoc
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emitter: AGRANA Beteiligungs-AG
Donau-City-Straße 9
A-1220 Wien
phone: +43-1-21137-0
FAX: +43-1-21137-12045
mail: [email protected]
WWW: www.agrana.com
sector: Food
ISIN: AT0000603709
indexes: WBI, ATX Prime
stockmarkets: Präsenzhandel: Börse Berlin, Börse Frankfurt, Börse Stuttgart,
official market: Wiener Börse AG
language: English

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