Origin Agritech Limited (NASDAQ: SEED; SEEDW and SEEDU) ("Origin") announced today that it has commenced negotiations on a memorandum of understanding with a complimentary integrated seed company in the PRC that specializes in the development, production, and sale of hybrid rice seed. The acquisition, if consummated, is anticipated to be completed early in 2006 and be an all cash transaction.

The acquisition is subject to completion of a due diligence review, negotiation of a definitive acquisition agreement, and satisfaction of various closing conditions.

Dr. Gengchen Han, the Chief Executive Officer said in connection with the potential acquisition, "We are very excited about potentially acquiring this vertically integrated seed company. It has many attributes that make it particularly attractive for us. First, it presently has a significant presence in the hybrid rice market in China, a market we have only recently entered last year. As a result of the acquisition we will immediately reach a size in the rice market that will allow us to achieve the economies of scale that we are now beginning to see in the corn market. Second, the company has a proprietary pipeline of rice hybrids that enhance our prospects for the future. Third, the acquisition is synergistic in that the distribution networks, when integrated, will now be able to sell, where applicable, two different seed products to the same farmers. And fourth, the management team of the to be acquired entity is very capable, and will further strengthen our ability to grow profitably in the future."