Hanfeng Evergreen Inc., a leading provider of value-added fertilizers in China and South East Asia, today announced that it has entered into a memorandum of understanding (“MOU”) with Tennessee-based FBSciences, Inc. (“FBSciences”), a global agri-technology company, to establish a joint venture (the “China JV”) for the production of high value-added liquid fertilizer products under license from FBSciences, or products to be jointly developed by FBSciences and Hanfeng, and utilizing FBSciences’ CarbonPower® core technology. The China JV will be owned 95 percent by Hanfeng and 5 percent by FBSciences. Both parties believe the China JV structure will expedite the penetration of various CarbonPower® products into the Chinese market. The operations for the proposed China JV will be located at the Company’s Jiangsu facility and will utilize the building and infrastructure associated with the NPK Prill Tower which will be shut down. A definitive agreement is expected to be completed soon. China has an increasing urban population with a rising standard of living which brought domestic consumption of meat to rise nearly seven-fold in 30 years, while fruit and vegetable consumption is nearly 10 times what it was 30 years ago. As a consequence, China uses more fertilizer than any country accounting for 28 percent of world consumption.