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AgriSolar Solutions, Inc. (AGSO) Announces Upgrades to Manufacturing Capabilities for Insect Elimination Systems

May 25, 2011 5:52 PM ET
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AgriSolar Solutions, Inc., a company that engages in the development, production, and sale of solar powered insect elimination products in the People’s Republic of China, has recently announced a significant upgrade to its manufacturing capabilities. With the installation of high volume manufacturing equipment in the Company’s factory, AgriSolar will be able to increase its factory output, decrease labor costs and increase its operating margins, while providing for increased protection of its intellectual property.

The upgrade for production will now enable the Company to manufacture 100% of its insect-attracting light sources in its own facility, when in the past only a small amount was manufactured in-house. The new manufacturing line has increased its capacity to 5,000 units per day.

Charles Liang, CEO of AgriSolar Solutions, commented, “Over the past few months, we have been in the position that demand and backlog has exceeded our ability to produce. This has limited our revenue growth. We are extremely excited to report that the production upgrades we are announcing today will allow us to meaningfully accelerate production, while at the same time enabling improved cost efficiencies. This overall improvement will result in us being able to grow our revenue stream more quickly and increase our margins.” He continued, “An added benefit of this upgrade is that moving forward, all of our light sources will be manufactured in-house, which will allow us to better protect our proprietary light source technologies. These manufacturing upgrades represent the achievement of a significant milestone for AgriSolar Solutions.”

AgriSolar Solutions has concluded that the cost of utilizing the cheapest insecticide available in the marketplace is approximately US$9 per acre a month, and that the cost for herbal or organic insecticides is approximately US$55 per acre a month. In comparison, the Company has estimated that the cost to utilize its solar insect killer is considerably lower, approximately US$1 per acre a year. Therefore, in addition to being environmentally friendly, users are able to enjoy considerable cost advantages by using the Company’s solutions in place of conventional insecticides.

The company also announced recently that it has added additional backlog through its recent award of new orders, which totaled US$6 million from thirteen provinces within the People’s Republic of China. These new orders have come upon the heels of recent US$13 million order from one of its biggest distributors, Sichuan Gifore Agricultural.

“Last week, we announced a single order that exceeds our entire gross sales during 2010 and we are pleased to announce today this additional order for US$6 million,” commented Charles Liang, CEO of AgriSolar Solutions. He continued, “With our growing backlog and the significant interest in our products we are seeing from both the Chinese and worldwide agricultural industries, we expect to exceed last year’s orders and sales. We are very pleased to be a contributor to the major shift toward reduced pesticide usage or complete pesticide elimination that is occurring within many sectors of the agricultural industry.”

For more information on the Company and its products, visit their company website at: www.agrisolarsolutions.com

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