China Organic Agriculture CEO Releases Letter to Shareholders

China Organic Agriculture, Inc. (OTCBB: CNOA - News), a diversified food products company capitalizing on China's consumer revolution, announces the release of a Letter to Shareholders from Jinsong Li, Chief Executive Officer.

Fellow Shareholders:

As we end a volatile year in the markets, China Organic can claim several milestones over the past twelve months and expects impressive growth potential into 2009. Our successes in 2008 have positioned the Company well to expand and enhance our market influence within China and Asia, the two largest and fastest growing markets in the world.

Before I begin, I would like to address, briefly, the class action suit announced on December 12^th, 2008. My previous comments and approach have not changed. The allegations of this suit are without merit and will be vigorously defended. This potential litigation shall not deter management from its goal of continuing to grow China Organic into a leading distributor of natural and organic foods as well as premium wines.

As I mentioned in my previous letter to our shareholders, both existing and potential:

China Organic continues to deliver outstanding shareholder value by executing our aggressive business plans to achieve consistent and exceptional growth in our revenues and earnings. The Company is rapidly moving from its agricultural roots to become a leading supplier and distributor of premium natural products to address the exceptional demand from the affluent and growing middle class in China and Asia.

Allow me to recap our milestones and achievements from 2008:

• Our Ankang subsidiary posted an impressive increase in revenue in the third quarter 2008 compared to the first half of the year
• Re-focused on core businesses-- premium foods and wine
• Acquired Dalian Huiming, a major agricultural trading company
• Established Asia Star Ice Wine Co joint venture
• Acquired executive personnel including a new CEO and CFO
• Added key administrative and sales personnel
• Completed two out of three senior exchange listing requirements

Recently, the Company convened a meeting of senior executives from China Organic and all of its subsidiaries. While the purpose was to review progress to date, discussion also took place regarding ways to cooperate among divisions and laying the groundwork for growth in 2009 and beyond. The infrastructure necessary to develop a sales network is well underway with the addition of Dalian and Ankang as agricultural trading and distribution arms, respectively.

Our wine initiative through the joint venture Asia Star Ice Wine will commence production of premium and ice wine in 2009. This joint venture will also be engaged in processing and distributing red wine, ice wine, blueberry ice wine, and blueberry drinks as well as the cultivation, processing and distribution of grapes and blueberries.

China Organic is two- thirds of the way to satisfying the listing requirements necessary to move to a senior exchange. While never a certainty, we are hopeful that we will conclude this process in 2009. The increased visibility and increased institutional investor following makes this goal one that will benefit both the Company and all of its shareholders.

With the expertise of our Board and management, we are confident we can build the Company significantly through internal growth and through strategic acquisitions. We are consistently adding new products and forging new relationships to allow the broadest distribution and diversity of our offerings.

At China Organic we understand our markets and the strong demand for the products we currently offer or are developing. While the economic landscape will remain a challenge worldwide, the growth in affluence and consumerism in China and Asia is expected to remain strong, especially in comparison to the west.

Subsequent to the close of the fourth quarter we are happy to report that our preliminary estimate for net income for FY2008 is $20 million, in line with previously stated guidance. Although this figure is unaudited, we look forward to delivering the final numbers for the fourth quarter and FY2008 in our 10-K filing in March.

I would like to take this opportunity to thank our valued shareholders for your continued support and I look forward to bringing you China Organic’s future developments in 2009.

About China Organic Agriculture

China Organic Agriculture is a diversified food products company capitalizing on China’s increasing domestic demand for premium products.

The Company sells to distributors in China which it will seek to leverage for increased market penetration in agricultural, food and related premium products. For more information, please visit: www.chinaorganicagriculture.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning future acquisitions, estimates of, and increases in, production, cash flows and values, statements relating to the continued advancement of China Organic Agriculture’s products and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," and similar expressions denote forward-looking statements. Although China Organic Agriculture Inc. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include, but are not limited to, those set forth in our reports filed with the Securities and Exchange Commission, together with the risks discussed in our press releases and other communications to shareholders issued by us from time to time, such as our ability to raise capital as and when required, the availability of raw products and other supplies, competition, the costs of goods, government regulations, and political and economic factors in the People's Republic of China in which our subsidiaries operate.