3rd Quarter Results

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Bodisen	LSE:BODI	London	Ordinary Share		COM STK USD0.0001

Industry Sector	Turnover	Profit	EPS - Basic	PE Ratio	Market Cap
	0	0		N/A	0

RNS Number : 3533I
Bodisen Biotech Inc
18 November 2008

Bodisen Biotech, Inc. reports Unaudited Third Quarter Financial Results

Review & Extracts of the Form10-Q as required by the Securities & Exchange Commission

Bodisen Biotech, Inc. (the "Company") (London AIM: BODI; OTC Pink Sheets: BBCZ; website: www.bodisen.com) today announced its third
quarter results for the period ended September 30, 2008 which are extracted fro the Company's Form 10-Q filed with the SEC.

Results of Operations

Nine months ended September 30, 2008 compared to Nine months ended September 30, 2007

Revenue. We generated revenues of $3,771,601 for the nine months ended September 30, 2008, a decrease of $6,723,093, compared to
$10,494,694 for the nine months ended September 30, 2007. The significant decrease in revenue was due to the abnormally cold spring time
weather of Shaanxi province, which affected crop plantings and decreased the use of fertilizer.

Gross Profit. We achieved a gross profit of $1,451,582 for the nine months ended September 30, 2008, a decrease of $3,166,547, compared
to $4,618,129 for the nine months ended September 30, 2007. Gross margin decreased, from 44.0% for the nine months ended September 30, 2007,
to 38.5% for the nine months ended September 30, 2008 primarily as a result of an increase in raw material costs.

Operating Expenses. We incurred operating expenses of $7,443,453 for the nine months ended September 30, 2008, an increase of $743,721
or 11.1% compared to $6,699,732 for the nine months ended September 30, 2007. The increase was also due to an increase in marketing cost
offset by lower provision for uncollectible accounts.

Aggregated Selling Expenses accounted for $2,170,352 of our operating expenses for the nine months ended September 30, 2008, compared to
$1,276,208 for the nine months ended September 30, 2007. The increase in our aggregated selling expenses is due to the significant increase
in our marketing costs. General and administrative expenses accounted for the remainder of our operating expenses of $5,273,101 for the nine
months ended September 30, 2008, which decreased $150,423 compared to $5,423,524 for the nine months ended September 30, 2007.

Non Operating Income and Expenses. We had total non-operating income of $3,802,538 for the nine months ended September 30, 2008 compared
to $258,820 for the nine months ended September 30, 2007. Other income was $3,648,443 for the nine months ended September 30, 2008 compared
to $(143) for the nine months ended September 30, 2007. The change is primarily due to bad debt recoveries during the nine months ended
September 30, 2008.

Net Income/(Loss). Net income decreased by 17.8% to $(2,147,793) for the nine months ended September 30, 2008 compared to net loss of
$(1,822,783) for the nine months ended September 30, 2007. We had earnings (loss) per share of $0.12 for the nine months ended September 30,
2008 compared to earnings per share (loss) of $0.10 for the nine months ended September 30, 2007.

About Bodisen Biotech, Inc.

Bodisen Biotech, Inc. is a manufacturer of liquid and organic compound fertilizers, pesticides, insecticides and agricultural raw
material certified by the Petroleum Chemical Industry Administrative office of China (Chemical Petroleum Production Administrative Bureau),
Shaanxi provincial government and Chinese government. The company is headquartered in Shaanxi province and is a Delaware corporation. The
company files annual and periodic reports with the U.S. Securities and Exchange Commission, which are accessible at www.sec.gov.

Safe Harbor Statement

This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Bodisen Biotech, Inc. management and are
subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the
forward-looking statements.

Enquiries:

Charles Stanley Securities
Rick Thompson / Philip Davies / Adam Sumner 020 7149 6000

Bodisen Biotech, Inc.
Bo Chen - Chairman & CEO
Wang Chunsheng - Chief Operations Officer 0086 29 8707 4957

Investor Relations
Joseph Viconti
US Representative 001 561 832 8878
joseph@ivaluerich.com

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND
2007

Three Months Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
$ $ $ $
Net Revenue 1,696,547 2,314,059 3,771,601 10,494,694

Cost of Revenue 1,028,889 1,207,774 2,320,019 5,876,565

Gross profit 667,658 1,106,285 1,451,582 4,618,129

Operating expenses
Selling expenses 1,792,173 596,921 2,170,352 1,276,208
General and administrative 3,906,651 2,879,530 5,273,101 5,423,524
expenses
Total operating expenses 5,698,824 3,476,451 7,443,453 6,699,732

Income (loss) from operations (5,031,166) (2,370,166) (5,991,871) (2,081,603)

Non-operating income
(expense):
Other income (expense) net 685,291 (639,729) 3,648,443 (143)
Interest income 13,350 83,418 154,095 262,870
Interest expense - (1,531) - (3,907)

Total non-operating income 698,641 (557,842) 3,802,538 258,820
(expense)

Loss before provision for (4,332,525) (2,928,008) (2,189,333) (1,822,783)
income taxes

Provision for income taxes 354 - 41,540

Net loss (4,332,171) (2,928,008) (2,147,793) (1,822,783)

Other comprehensive income
Foreign currency translation 24,124 (859,916) 2,925,857 2,517,806
gain (loss)
Unrealized gain (loss) on (4,911,768) (5,200,695) (6,769,159) 7,739,130
marketable equity security

Comprehensive Income (loss) (9,219,815) (3,132,603) (5,991,095) (8,434,153)

Weighted average shares
outstanding :
Basic 18,362,424 18,310,250 18,327,768 18,310,250
Diluted 18,362,424 18,310,250 18,327,768 18,310,250

Loss per share:
Basic (0.24) (0.16) (0.12) (0.10)
Diluted (0.24) (0.16) (0.12) (0.10)

CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2008 AND DECEMBER 31, 2007

September 30, December 31,
2008 2007
(unaudited)
ASSETS $ $
CURRENT ASSETS:
Cash & cash equivalents 352,944 617,406
Accounts receivable, net of allowance for
doubtful accounts of $3,748,348 and 5,547,747 618,052
$25,447,689
Other receivable 711,160 2,292,763
Inventory 2,784,773 1,179,448
Advances to suppliers 1,937,862 9,741,090
Prepaid expense and other current assets 4,644,255 5,066,015

Total current assets 15,978,741 19,514,774

PROPERTY AND EQUIPMENT, net 5,444,072 5,306,254

CONSTRUCTION IN PROGRESS 13,444,289 7,722,756

MARKETABLE SECURITY 7,470,840 14,239,999

INTANGIBLE ASSETS, net 5,133,825 2,050,652

OTHER ASSETS 1,320,811 3,720,785

LOAN RECEIVABLE - 2,439,275

TOTAL ASSETS 48,792,578 54,994,495

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable 858,280 1,186,768
Accrued expenses 251,802 219,936

Total current liabilities 1,110,082 1,406,704

STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 per share;
authorized 5,000,000 shares; nil issued and
outstanding
Common stock, $0.0001 per share; authorized
30,000,000 shares;
issued and outstanding 18,710,250 and
18,310,250
Additional paid-in capital 1,871 1,831
Other comprehensive income 33,945,822 33,860,062
Statutory reserve 12,677,473 16,520,775
Retained earnings 4,314,488 4,314,488
Total stockholders' equity (3,257,158) (1,109,365)
47,682,496 53,587,791
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 48,792,578 54,994,495

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007

Nine Months Ended September 30,
2008 2007
(unaudited) (unaudited)
$ $
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss (2,147,793) (1,822,783)
Adjustments to reconcile net loss to net
cash
provided by (used in) operating
activities:
Depreciation and amortization 393,329 354,753
Allowance (recovery) for bad debts (3,648,443) 210,095
Common stock issued for services 60,000 -
Value of warrants issued for services 25,800 -
(Increase) / decrease in assets:
Accounts receivable (1,141,823) (5,469,096)
Other receivable 1,700,911 (1,407,655)
Inventory (1,495,506) 598,013
Advances to suppliers 8,288,420 4,243,485
Prepaid expense 867,351 (4,159,646)
Other assets (120,431) -
Increase / (decrease) in current
liabilities:
Accounts payable and accrued expenses (364,008) (278,338)
Other payable 17,444 -

Net cash provided by (used in) operating 2,435,251 (7,731,172)
activities

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (50,639) (91,381)
Additions to construction in progress (5,098,387) (3,582,845)
Acquisition of other assets (333,292) (44,168)
Repayment of loans receivable 2,551,054 -

Net cash used in investing activities (2,931,264) (3,718,394)

Effect of exchange rate changes on cash 231,551 587,773
and cash equivalents

NET DECREASE IN CASH & CASH EQUIVALENTS (264,462) (10,861,793)

CASH & CASH EQUIVALENTS, BEGINNING OF 617,406 11,824,327
PERIOD

CASH & CASH EQUIVALENTS, END OF PERIOD 352,944 962,534

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Interest paid - -
Income taxes paid - -

SUPPLEMENTAL NON-CASH INVESTING AND
FINANCING ACTIVITIES:

Transfer of land rights from other assets 3,063,153 -
to intangible assets

NOTES

Note 1 - Organization and Basis of Presentation

Organization and Line of Business

Yang Ling Bodisen Biology Science and Technology Development Company Limited ("BBST") was founded in the People's Republic of China on
August 31, 2001. BBST, located in Yang Ling Agricultural High-Tech Industries Demonstration Zone, is primarily engaged in developing,
manufacturing and selling pesticides and compound organic fertilizers in the People's Republic of China.

On February 24, 2004, Bodisen International, Inc. ("BII"), the non-operative holding company of BBST (accounting acquirer) consummated a
merger agreement with Stratabid.com, Inc. (legal acquirer) ("Stratabid"), a Delaware corporation, to exchange 12,000,000 shares of Stratabid
to the stockholders of BII, in which BII merged into Bodisen Holdings, Inc. (BHI), an acquisition subsidiary of Stratabid, with BHI being
the surviving entity. As a part of the merger, Stratabid cancelled 3,000,000 shares of its issued and outstanding stock owned by its former
president and declared a stock dividend of three shares on each share of its common stock outstanding for all stockholders on record as of
February 27, 2004.

Stratabid was incorporated in the State of Delaware on January 14, 2000 and before the merger, was a start- up stage Internet based
commercial mortgage origination business based in Vancouver, BC, Canada.

The exchange of shares with Stratabid has been accounted for as a reverse acquisition under the purchase method of accounting because
the stockholders of BII obtained control of Stratabid. On March 1, 2004, Stratabid was renamed Bodisen Biotech, Inc. (the "Company").
Accordingly, the merger of the two companies has been recorded as a recapitalization of the Company, with the Company (BII) being treated as
the continuing entity. The historical financial statements presented are those of BII.

As a result of the reverse merger transaction described above the historical financial statements presented are those of BBST, the
operating entity.

In March 2005, Bodisen Biotech Inc. completed a $3 million convertible debenture private placement through an institutional investor.
Approximately $651,000 in incremental and direct expenses relating to this private placement has been amortized over the term of the
convertible debenture. None of the expenses were paid directly to the institutional investor. The net proceeds from this offering were
invested as initial start-up capital in a newly created wholly-owned Bodisen subsidiary by the name of "Yang Ling Bodisen Agricultural
Technology Co., Ltd. ("Agricultural"). In June 2005, Agricultural completed a transaction with Yang Ling Bodisen Biology Science and
Technology Development Company Limited ("BBST"), Bodisen Biotech, Inc.'s operating subsidiary in China, which resulted in Agricultural
owning 100% of BBST.

In June 2006, BBST created another wholly owned subsidiary in the Uygur autonomous region of Xinjiang, China by the name of Bodisen
Agriculture Material Co. Ltd. ("Material"). Material had no operations during the year ended December 31, 2006.

Basis of Presentation

The unaudited consolidated financial statements have been prepared by Bodisen Biotech, Inc. (the "Company"), pursuant to the rules and
regulations of the Securities and Exchange Commission. The information furnished herein reflects all adjustments (consisting of normal
recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the
respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in
accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and
regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and
footnotes included in the Company's Annual Report on Form 10-K. The results of the nine months ended September 30, 2008 are not necessarily
indicative of the results to be expected for the full year ending December 31, 2008.

Foreign Currency Translation

The accounts of the Company were maintained, and their consolidated financial statements were expressed in the Chinese Yuan Renminbi
(CNY). Such consolidated financial statements were translated into U.S. Dollars (USD) in accordance with Statement of Financial Accounts
Standards ("SFAS") No. 52, "Foreign Currency Translation," with the CNY as the functional currency. According to the Statement, all assets
and liabilities were translated at the exchange rate on the balance sheet date, stockholder's equity are translated at the historical rates
and statement of operations items are translated at the weighted average exchange rate for the year. The resulting translation adjustments
are reported under other comprehensive income in accordance with SFAS No. 130, "Reporting Comprehensive Income".

Note 2 - Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make
estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. It is possible that accounting estimates and assumptions may be material
to the Company due to the levels of subjectivity and judgment involved.

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments
with original maturities of three months or less.

Accounts Receivable

The Company maintains reserves for potential credit losses for accounts receivable. Management reviews the composition of accounts
receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in
customer payment patterns to evaluate the adequacy of these reserves. Reserves are recorded based on the Company's historical collection
history.

Advances to Suppliers

The Company advances to certain vendors for purchase of its material. The advances to suppliers are interest free and unsecured.

Inventories

Inventories are valued at the lower of cost (determined on a weighted average basis) or market. The Management compares the cost of
inventories with the market value and allowance is made for writing down their inventories to market value, if lower.

Property & Equipment and Capital Work In Progress

Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions,
renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated
depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and
equipment is provided using the straight-line method for substantially all assets with estimated lives of:

Operating equipment 10 years
Vehicles 8 years
Office equipment 5 years
Buildings 30 years

The following are the details of the property and equipment at September 30, 2008 and December 31, 2007, respectively:

September 30, 2008 December 31, 2007
Operating equipment $ 1,105,785 $ 1,025,862
Vehicles 758,620 722,360
Office equipment 87,313 81,671
Buildings 5,106,705 4,735,665
7,058,423 6,565,558
Less accumulated depreciation (1,614,352) (1,259,304)
$ 5,444,072 $ 5,306,254

Depreciation expense for the nine months ended September 30, 2008 and 2007 was $265,009 and $188,842, respectively.

On September 30, 2008 and December 31, 2007, the Company had "Capital Work in Progress" representing the construction in progress of the
Company's manufacturing plant amounting $13,444,289 and $7,722,756 respectively.

Marketable Securities

Marketable securities consist of 2,063,768 shares of China Natural Gas, Inc. (traded on the OTCBB: CHNG). This investment is classified
as available-for-sale as the Company plans to hold this investment for the long-term. This investment is reported at fair value with
unrealized gains and losses included in other comprehensive income. The fair value is determined by using the securities quoted market price
as obtained from stock exchanges on which the security trades.

Investment income, principally dividends, is recorded when earned. Realized capital gains and losses are calculated based on the cost of
securities sold, which is determined by the "identified cost" method.

Long-Lived Assets

The Company applies the provisions of Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets" ("SFAS 144"), which addresses financial accounting and reporting for the impairment or disposal of long-lived assets and
supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of," and the
accounting and reporting provisions of APB Opinion No. 30, "Reporting the Results of Operations for a Disposal of a Segment of a Business."
The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with SFAS 144. SFAS 144
requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the
undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. In that event, a loss is
recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair
market values are reduced for the cost of disposal. Based on its review, the Company believes that, as of September 30, 2008 there were no
significant impairments of its long-lived assets.

Intangible Assets

Intangible assets consist of Rights to use land and Fertilizers proprietary technology rights. The Company evaluates intangible assets
for impairment, at least on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be
recoverable from its estimated future cash flows. Recoverability of intangible assets, other long-lived assets and, goodwill is measured by
comparing their net book value to the related projected undiscounted cash flows from these assets, considering a number of factors including
past operating results, budgets, economic projections, market trends and product development cycles. If the net book value of the asset
exceeds the related undiscounted cash flows, the asset is considered impaired, and a second test is performed to measure the amount of
impairment loss.

Fair Value of Financial Instruments

On January 1, 2008, the Company adopted SFAS No. 157, Fair Value Measurements. SFAS No. 157 defines fair value, establishes a
three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. The
carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial instruments and are a
reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected
realization and their current market rate of interest. The three levels are defined as follow:

* Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active
markets.

* Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs
that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

* Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The following table represents our assets and liabilities by level measured at fair value on a recurring basis at September 30, 2008.

Description Level 1 Level 2 Level 3

Assets
Marketable securities $ - $ 7,470,840 $ -

Revenue Recognition

The Company's revenue recognition policies are in compliance with Staff accounting bulletin (SAB) 104. Sales revenue is recognized at
the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other
significant obligations of the Company exist and collectibility is reasonably assured. Payments received before all of the relevant criteria
for revenue recognition are satisfied are recorded as unearned revenue.

Advertising Costs

The Company expenses the cost of advertising as incurred or, as appropriate, the first time the advertising takes place. Advertising
costs for the nine months ended September 30, 2008 and 2007 were insignificant.

Stock-Based Compensation

The Company adopted SFAS No. 123 (Revised 2004), Share Based Payment ("SFAS No. 123R"), under the modified-prospective transition method
on January 1, 2006. SFAS No. 123R requires companies to measure and recognize the cost of employee services received in exchange for an
award of equity instruments based on the grant-date fair value. Share-based compensation recognized under the modified-prospective
transition method of SFAS No. 123R includes share-based compensation based on the grant-date fair value determined in accordance with the
original provisions of SFAS No. 123, Accounting for Stock-Based Compensation, for all share-based payments granted prior to and not yet
vested as of January 1, 2006 and share-based compensation based on the grant-date fair-value determined in accordance with SFAS No. 123R for
all share-based payments granted after January 1, 2006. SFAS No. 123R eliminates the ability to account for the award of these instruments
under the intrinsic value method prescribed by Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees, and allowed under the original provisions of SFAS No. 123.
Prior to the adoption of SFAS No. 123R, the Company accounted for our stock option plans using the intrinsic value method in accordance with
the provisions of APB Opinion No. 25 and related interpretations.

Income Taxes

The Company utilizes SFAS No. 109, "Accounting for Income Taxes," which requires the recognition of deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method,
deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities
and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in
which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax
assets to the amount expected to be realized.

According to the Provisional Regulations of the People's Republic of China on Income Tax, the Document of Reductions and Exemptions of
Income Tax for the Company had been approved by the local tax bureau and the Yang Ling Agricultural High-Tech Industries Demonstration Zone.
The Company was exempted from income tax through October 2007.

In March 2005, Bodisen Biotech Inc. formed Agricultural. Under Chinese law, a newly formed wholly owned subsidiary of a foreign company
enjoys an income tax exemption for the first two years and a 50% reduction of normal income tax rates for the following 3 years. In order to
extend such tax benefits, in June 2005, Agricultural completed a transaction with BBST, which resulted in Agricultural owning 100% of BBST.

Foreign Currency Transactions and Comprehensive Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain
statements, however, require entities to report specific changes in assets and liabilities, such as gain or loss on foreign currency
translation, as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of
comprehensive income. The functional currency of the Company is the Chinese Yuan Renminbi. Translation gains of $8,073,979 at September 30,
2008 are classified as an item of other comprehensive income in the stockholders' equity section of the consolidated balance sheet. During
the nine months ended September 30, 2008 and 2007, other comprehensive income in the consolidated statements of operations and other
comprehensive income included translation gains of $2,925,857 and $2,517,806, respectively.

Basic and Diluted Earnings Per Share

Earnings per share is calculated in accordance with the Statement of Financial Accounting Standards No. 128 (SFAS No. 128), "Earnings
per share." SFAS No. 128 superseded Accounting Principles Board Opinion No.15 (APB 15). Earnings (loss) per share for all periods presented
has been restated to reflect the adoption of SFAS No. 128. Basic net loss per share is based upon the weighted average number of common
shares outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were
converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to
be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase
common stock at the average market price during the period

Statement of Cash Flows

In accordance with Statement of Financial Accounting Standards No. 95, "Statement of Cash Flows," cash flows from the Company's
operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement
of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.

Segment Reporting

Statement of Financial Accounting Standards No. 131 ("SFAS 131"), "Disclosure About Segments of an Enterprise and Related Information"
requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's
management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on
products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.
SFAS 131 has no effect on the Company's consolidated financial statements as the Company consists of one reportable business segment. All
revenue is from customers in People's Republic of China. All of the Company's assets are located in People's Republic of China.

Recent Pronouncements

In February 2007, the Financial Accounting Standards Board ("FASB") issued SFAS No. 159, "The Fair Value Option for Financial Assets and
Financial Liabilities". SFAS 159 permits entities to choose to measure many financial assets and financial liabilities at fair value.
Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. SFAS 159 is effective for
fiscal years beginning after November 15, 2007. The Company is currently assessing the impact of SFAS 159 on its financial position and
results of operations.

In June 2007, the FASB issued FASB Staff Position No. EITF 07-3, "Accounting for Nonrefundable Advance Payments for Goods or Services
Received for use in Future Research and Development Activities" ("FSP EITF 07-3"), which addresses whether nonrefundable advance payments
for goods or services that used or rendered for research and development activities should be expensed when the advance payment is made or
when the research and development activity has been performed. Management is currently evaluating the effect of this pronouncement on
financial statements.

In December 2007, the FASB issued SFAS No. 141 (Revised 2007), "Business Combinations." SFAS No. 141R changes how a reporting enterprise
accounts for the acquisition of a business. SFAS No. 141R requires an acquiring entity to recognize all the assets acquired and liabilities
assumed in a transaction at the acquisition-date fair value, with limited exceptions, and applies to a wider range of transactions or
events. SFAS No. 141R is effective for fiscal years beginning on or after December 15, 2008 and early adoption and retrospective application
is prohibited.

In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements", which is an amendment
of Accounting Research Bulletin ("ARB") No. 51. SFAS 160 clarifies that a noncontrolling interest in a subsidiary is an ownership interest
in the consolidated entity that should be reported as equity in the consolidated financial statements. SFAS 160 changes the way the
consolidated income statement is presented, thus requiring consolidated net income to be reported at amounts that include the amounts
attributable to both parent and the noncontrolling interest. SFAS 160 is effective for the fiscal years, and interim periods within those
fiscal years, beginning on or after December 15, 2008. Based on current conditions, the Company does not expect the adoption of SFAS 160 to
have a significant impact on its results of operations or financial position.

In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities an amendment of FASB
Statement No. 133." SFAS 161 changes the disclosure requirements for derivative instruments and hedging activities. Entities are required to
provide enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged
items are accounted for under SFAS 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect
an entity's financial position, financial performance, and cash flows. Based on current conditions, the Company does not expect the adoption
of SFAS 161 to have a significant impact on its results of operations or financial position.

In May 2008, the FASB issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles." SFAS 162 identifies the sources
of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements of
nongovernmental entities that are presented in conformity with generally accepted accounting principles (GAAP) in the United States (the
GAAP hierarchy). SFAS 162 will not have an impact on the Company's financial statements.

In May 2008, the FASB issued SFAS No. 163, "Accounting for Financial Guarantee Insurance Contracts, an interpretation of FASB Statement
No. 60." The scope of SFAS 163 is limited to financial guarantee insurance (and reinsurance) contracts, as described in this Statement,
issued by enterprises included within the scope of Statement 60. Accordingly, SFAS 163 does not apply to financial guarantee contracts
issued by enterprises excluded from the scope of Statement 60 or to some insurance contracts that seem similar to financial guarantee
insurance contracts issued by insurance enterprises (such as mortgage guaranty insurance or credit insurance on trade receivables). SFAS 163
also does not apply to financial guarantee insurance contracts that are derivative instruments included within the scope of FASB Statement
No. 133, "Accounting for Derivative Instruments and Hedging Activities." SFAS 163 will not have an impact on the Company's financial
statements.

Note 3 - Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Bodisen Biotech, Inc., its 100% wholly-owned subsidiaries
Bodisen Holdings, Inc. (BHI), Yang Ling Bodisen Agricultural Technology Co., Ltd (Agricultural), which was incorporated in March 2005, and
Sinkiang Bodisen Agriculture Material Co., Ltd. (Material), which was incorporated in June 2006, as well as the accounts of Agricultural's
100% wholly- owned subsidiary Yang Ling Bodisen Biology Science and Technology Development Company Limited (BBST). All significant
inter-company accounts and transactions have been eliminated in consolidation.

Note 4 - Inventory

Inventory at September 30, 2008 and December 31, 2007 consisted of the following:

September 30, 2008 December 31, 2007
Raw Material $ 1,203,163 $ 425,542
Packaging 331,367 250,018
Finished Goods 1,450,709 691,730
Consumables 358 336
2,985,597 1,367,626
Less Obsolescence Reserve (200,824) (188,178)
Inventory, net $ 2,784,773 $ 1,179,448

Note 5 - Marketable Security

During the year ended December 31, 2005, the Company purchased 2,063,768 shares of China Natural Gas, Inc. (traded on the OTCBB: CHNG)
for $2,867,346. At September 30, 2008 and December 31, 2007, the fair value of this investment was $7,470,840 and $14,239,999, respectively.
As a result of the change in fair value of this investment the Company recorded an unrealized gain (loss) of ($6,769,159) and $2,517,806 the
nine months ended September 30, 2008 and 2007, respectively; which is included in other comprehensive income (loss). At September 30, 2008,
this represented a 7.1% interest in China Natural Gas, Inc.

Note 6 -Other Long-term Assets

During 2006, the Company acquired a 19.5% and a 19.8% interest in two local companies by investing a total amount of $1,156,861 in
cash.

Note 7 - Loan Receivable

In August 2006, the Company entered into an agreement to loan $1,306,745 to an unrelated party. The loan is unsecured, payable by August
2008 and carries an interest rate of 13% per annum.

In November 2006, the Company entered into an agreement to loan $814,096 to an unrelated party. The loan is unsecured, payable by
November 2008 and carries an interest rate of 13% per annum.

During the three months ended September 30, 2008, these two loan receivables were paid off.

Note 8- Intangible Assets

Net intangible assets at September 30, 2008 and December 31, 2007 were as follows:

2008 2007
Rights to use land $ 5,063,006 $ 1,873,929
Fertilizers proprietary technology 1,170,400 1,096,704
rights
6,233,406 2,970,633
Less Accumulated amortization (1,099,581) (919,981 )
$ 5,133,825 $ 2,050,652

The Company's office and manufacturing site is located in Yang Ling Agricultural High-Tech Industries Demonstration Zone in the province
of Shanxi, People's Republic of China. The Company leases land per a real estate contract with the government of People's Republic of China
for a period from November 2001 through November 2051. Per the People's Republic of China's governmental regulations, the Government owns
all land.

During July 2003, the Company leased another parcel of land per a real estate contract with the government of the People's Republic of
China for a period from July 2003 through June 2053.

The Company has recognized the amounts paid for the acquisition of rights to use land as intangible asset and amortizing over a period
of fifty years. The "Rights to use land" is being amortized over a 50 year period.

The Company acquired Fluid and Compound Fertilizers proprietary technology rights with a life ending December 31, 2011. The Company is
amortizing Fertilizers proprietary technology rights over a period of ten years.

On July 15, 2008, the Company entered into a 50 year land rights agreement.

Amortization expense for the Company's intangible assets for the nine month periods ended September 30, 2008 and 2007 amounted to
$128,320 and $100,550, respectively.

Amortization expense for the Company's intangible assets over the next five fiscal years is estimated to be: 2008-$299,500,
2009-$299,500, 2010-$299,500, 2011-$299,500, 2012- $299,500 and thereafter - $3,636,000.

Note 9 - Stock Options and Warrants

Stock Options

Following is a summary of the stock option activity:

Options outstanding Weighted Average Aggregate Intrinsic Value
Exercise Price

Outstanding, December 31, 2007 136,000 $5.39 $0
Granted 400,000 0.70
Forfeited - -
Exercised - -
Outstanding, September 30, 536,000 $1.89 $0
2008

Following is a summary of the status of options outstanding at September 30, 2008:

Outstanding Options Exercisable Options

Exercise Number Average Remaining Average Exercise Number Average Exercise Price
Price Contractual Life Price

$5.00 100,000 0.93 $5.00 100,000 $5.00
$5.80 10,000 1.50 $5.80 10,000 $5.80
$6.72 26,000 2.25 $6.72 26,000 $6.72
$0.70 400,000 2.50 $0.70 400,000 $0.70

The assumptions used in calculating the fair value of warrants granted in 2008 using the Black-Scholes option- pricing model are as
follows:

Risk-free interest rate 2.05%
Expected life of the options 2.5 years
Expected volatility 128%
Expected dividend yield 0%

Note 10 - Employee Welfare Plans

The Company has established its own employee welfare plan in accordance with Chinese law and regulations. The Company makes annual
contributions of 14% of all employees' salaries to employee welfare plan. The total expense for the above plan were $0 and $0 for the nine
months ended September 30, 2008 and 2007, respectively. The Company has recorded welfare payable of $31,991 and $71,908 at September 30,
2008 and December 31, 2007, respectively, which is included in accrued expenses in the accompanying consolidated balance sheet.

Note 11 - Statutory Common Welfare Fund

As stipulated by the Company Law of the People's Republic of China (PRC), net income after taxation can only be distributed as dividends
after appropriation has been made for the following:

* Making up cumulative prior years' losses, if any;

* Allocations to the "Statutory surplus reserve" of at least 10% of income after tax, as determined under PRC accounting rules and
regulations, until the fund amounts to 50% of the Company's registered capital;

* Allocations of 5-10% of income after tax, as determined under PRC accounting rules and regulations, to the Company's "Statutory
common welfare fund", which is established for the purpose of providing employee facilities and other collective benefits to the Company's
employees; and

* Allocations to the discretionary surplus reserve, if approved in the stockholders' general meeting.

Pursuant to the new Corporate Law effective on January 1, 2006, there is now only one "Statutory surplus reserve" requirement. The
reserve is 10 percent of income after tax, not to exceed 50 percent of registered capital.

Pursuant to the "Circular of the Ministry of Finance ( MOF) on the Issue of Corporate Financial Management after the Corporate Law
Enforced" (No.67 [2006]), effective on April 1, 2006, issued by the MOF, the companies will transfer the balance of SCWF as of December 31,
2005 to Statutory Surplus Reserve. Any deficit in the SCWF will be charged in turn to Statutory Surplus Reserve, additional paid-in capital
and undistributed profit of previous years. If a deficit still remains, it should be transferred to retained earnings and be reduced to zero
by a transfer from after tax profit of following years. At December 31, 2006, the Company did not have a deficit in the SCWF.

The Company has appropriated $0 and $0 as reserve for the statutory surplus reserve and welfare fund for the nine months ended September
30, 2008 and 2007, respectively.

Note 12 - Earnings Per Share

Earnings per share for nine months ended September 30, 2008 and 2007 were determined by dividing net income for the periods by the
weighted average number of both basic and diluted shares of common stock and common stock equivalents outstanding. There is no difference
between basic and diluted earnings per shares for the nine months ended September 30, 2008 and 2007. For 2008 and 2007, the Company reported
a net loss therefore and common stock equivalents would be anti-dilutive.

Note 13 - Current Vulnerability Due to Certain Concentrations

Four vendors provided 55%, 23.98%, 15.86%, and 1.18% of the Company's raw materials for the nine months ended September 30, 2008 and
three vendors provided 70.3%, 10.5% and 7.5%, of the Company's raw materials for the nine months ended September 30, 2007.

The Company's operations are carried out in the PRC. Accordingly, the Company's business, financial condition and results of operations
may be influenced by the political, economic and legal environments in the PRC, by the general state of the PRC's economy. The Company's
business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency
conversion and remittance abroad, and rates and methods of taxation, among other things.

Note 14 - Litigation

The Company is involved in a variety of claims, suits, investigations and proceedings that arise from time to time in the ordinary
course of its business, including actions with respect to contracts, intellectual property (IP), product liability, employment, benefits,
securities, and other matters. These actions may be commenced by a number of different constituents, including competitors, partners,
clients, current or former employees, government and regulatory agencies, stockholders, and representatives of the locations in which it
does business. The following is a discussion of some of the more significant legal matters involving the Company.

In late 2006, various shareholders of the Company filed eight purported class actions in the U.S. District Court for the Southern
District of New York against the Company and certain of its officers and directors (among others), asserting claims under the federal
securities laws. The complaints contain allegations about prior financial disclosures and its internal controls and a prior, now-terminated
relationship with a financial advisor.

The eight actions are Stephanie Tabor vs. Bodisen, Inc., et al., Case No. 06-13220 (filed November 2006), Fraser Laschinger vs. Bodisen,
Inc., et al., Case No. 06-13254 (filed November 2006), Anthony DeSantis vs. Bodisen, Inc., et. al., Case No. 06-13454 (filed November 2006),
Yuchen Zhou vs. Bodisen, Inc., et. al., Case No. 06-13567 (filed November 2006), William E. Cowley vs. Bodisen, Inc., et. al., Case No.
06-13739 (filed December 2006), Ronald Stubblefield vs. Bodisen, Inc., et. al., Case No. 06-14449 (filed December 2006), Adam Cohen vs.
Bodisen, Inc., et. al., Case No. 06-15179 (filed December 2006) and Lawrence M. Cohen vs. Bodisen, Inc., et. al., Case No. 06-15399 (filed
December 2006). Plaintiffs have not specified an amount of damages they seek. Last year, the Court consolidated each of the actions into a
single proceeding.

In October 2008 the New York Federal Court presiding over the eight consolidated class actions against Bodisen and its management
granted the Company's initial motion to dismiss the cases.

In addition, the court has notified Bodisen that it also granted the Company's second motion to dismiss, which challenged the subject
matter jurisdiction of the court over about 40% of the class and thus sought to reduce the number of potential class plaintiffs
significantly. The court has not provided the Company this written decision, however, the Company hopes to receive it soon.

In 2007, Ji Xiang, a shareholder of China Natural Gas (and son of its Chairman and CEO) instituted litigation in the Chinese court
system in Shaanxi province challenging the validity of the Company's ownership of 2,063,768 shares of China Natural Gas common stock. The
Company obtained these shares in September 2005 in a share transfer agreement and asserts that it has fully performed its obligations under
the agreement and is entitled to own the shares. The parties in the Chinese litigation have submitted their evidence and now await a
decision from the Chinese court. Also, in January 2008, the same shareholder instituted litigation in a Utah state court against Yangling
Bodisen Biotech Development Co. Ltd. and Interwest Transfer Co. (China Natural Gas's transfer agent) seeking to prevent the Company from
selling its shares in China Natural Gas. Plaintiff has obtained an order from the Utah court provisionally preventing the Company from
selling the China Natural Gas shares pending a decision on the merits of the underlying dispute. The Company intends to vigorously and thoroughly defend itself against this claim. While the Company believes
it will prevail in these litigation matters and establish its right of ownership to the China Natural Gas shares, an adverse outcome could
have a material adverse effect on its business, financial condition, results of operations or liquidity.

This information is provided by RNS
The company news service from the London Stock Exchange

END

QRTGUGAAGUPRUMR

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

BODI Bodisen