Deyu Agriculture Corp. to Cancel VIE Agreements With Deyufarm

BEIJING, October 11, 2011 /PRNewswire-Asia-FirstCall/ -- Deyu Agriculture Corp. (OTCBB: DEYU - News) (the "Company"), a Beijing, China-based vertically integrated producer and distributor of organic and non-organic corn and grain products, announced today that it is preparing to terminate its control over Deyufarm, which is currently part of Deyu's deep processed grain product division, by cancelling its VIE agreements.

"Maximizing shareholder value is our utmost priority," said Jianming Hao, Chief Executive Officer and Chairman of Deyu. "Our investors had been experiencing a loss from Deyufarm due to the current financial and market challenges facing Deyufarm, and after several meetings with our shareholders, legal counsel and board of directors, we believe that it is in the best interest of our Company and our investors to terminate our relationship with Deyufarm. As we look for ways to improve our deep processed grain product division, we believe that our core businesses, including corn products, which more than doubled its sales in the last quarter and our simple processed grains division, which increased its revenues more than 500% last quarter, will help us maintain our progress."

Our CEO's letter to our shareholders is available on the Company's website: www.deyuagri.com under Investors/Investor Presentation.

About Deyu Agriculture

Deyu Agriculture Corp. is a vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains operating in the Shanxi Province of the People's Republic of China. The Company has access to over 109,000 acres of farmland in Shanxi Province for breeding, cultivating, processing, warehousing, and distributing grain and corn products. The Company has an extensive retail distribution network of more than 10,000 retail stores across China. The Company's website is located at www.deyuagri.com.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Deyu Agriculture Corp.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, general economic conditions; geopolitical events and regulatory changes, availability of capital, changes in the agricultural industry, the Company's ability to maintain its competitive position. Additional Information regarding risks can be found in the Company's most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K with the SEC.