China Organic Agriculture, Inc. (OTC BB: CNOA) announced that the Company reached a milestone 3-year retail distribution agreement with Shunda Grain and Oil Company of Songyuan City, one of the largest cities in the northeastern province of Jilin.

The agreement with Shunda Grain and Oil is the latest validation of CNOA's stated strategic initiatives to expand market share by gaining new partnerships with major retail distribution system partners in China and other emerging economies in Asia. The agreement is expected to contribute revenues of 30 million Yuan, equivalent to approximately USD $4 million within calendar year 2007. The agreement states that Shunda Grain and Oil will become one of CNOA's authorized retailers in the supermarket chain store industry, selling "ErMaPao" award-winning series of products to the Fuyu region with more than 2.8 million consumers.