Bodisen Biotech Reports Record Second Quarter Financial Results

Company Reports Earnings per Fully Diluted Share of $0.32 and Net Income of $5.9 Million, up 118% Year-Over-Year, Revenues Grew 95% Year-Over-Year to $16.4 Million

Second Half of 2006 and 2007 Growth Outlook Positive With Strong Product Demand and Company's Expansion Into New Markets

Bodisen Biotech, Inc. (AMEX: BBC) (AIM: BODI) (website: www.bodisen.com) the first China-based environmentally friendly bio fertilizer company listed on a US stock exchange, and dually listed in London, today announced that it achieved record revenue and earnings growth from the production and sale of organic fertilizer and pesticide products during the second quarter ended June 30, 2006.

The following are some of the financial highlights for the second quarter from the company's Form 10-Q filed with the SEC:

SECOND QUARTER FINANCIAL & OPERATIONAL HIGHLIGHTS

--  Revenues grew 95% to $16.4 million from $8.4 million in the same
    period of 2005.
--  Gross profit increased to $6.4 million from $3.3 million in the same
    period last year.
--  Net Income grew 118% to $5.9 million from $2.7 million in the same
    period of 2005.
--  Net income margin of approximately 36% due to strong sales in high
    margin liquid fertilizers.
--  Fully diluted EPS increased to $0.32 from $0.17 in the same period
    last year.
    

Mr. Bo Chen, President of Bodisen, commented: "We experienced another record quarter of revenues and earnings growth during the second quarter of 2006. Our results for the second quarter and for the first half of 2006 reflect strong demand for our environmentally friendly, high yield organic fertilizer solutions and the growing awareness of the Bodisen brand among China's farmers. Our earnings per share of $0.32 again exceeded analyst estimates of $0.25 for the quarter. Our third quarter has historically been the strongest quarter and we look forward to a great year of record growth in 2006."

REVENUES

Bodisen achieved record revenues of $16,382,189 for the second quarter of 2006, up 95% from the prior year period when the company reported revenues of $8,416,805. The growth in revenue was primarily attributable to the increase in the customer base as the company continued to aggressively market their products and the growing awareness in the agricultural industry in the markets in which they do business of the efficacy of their products.

GROSS PROFIT

Bodisen achieved a gross profit of $6,411,936 for the second quarter of 2006, up 97% from the prior year period gross profit of $3,255,664. Gross margin increased to 39.1% in the second quarter of 2006 from 38.7% in the same year ago period. The increase in gross margin was primarily attributable to the increase in the prices of main products.

NET INCOME

Bodisen achieved net income of $5,879,678 or fully diluted EPS of $0.32 in the second quarter of 2006 compared to net income of $2,692,014 or fully diluted EPS of $0.17 in the same quarter last year. The increase was attributed to a successful targeted marketing campaign to further saturate its existing markets and to also further penetrate new markets and regions throughout China.

POSITIVE OUTLOOK

Mr. Bo Chen, Bodisen's President, commented: "The market opportunity in China for environmentally friendly fertilizer products remains largely untapped and Bodisen is well-positioned to benefit from China's rising standards of living and end user consumers' demand for natural and organically grown foods and produce. With solid visibility, we are on track to reach our projections for 2006 and 2007. As Chinese farmers continue to shift from chemical fertilizers to our environmentally friendly, higher crop yield bio compound fertilizers, Bodisen will continue to reap the benefits as a leading premium organic fertilizer brand throughout China."

About Bodisen Biotech, Inc.

A Delaware company, Bodisen is headquartered in Shaanxi, China's agricultural hub. In January 2006, Bodisen was ranked the 16th fastest growing company in China by Forbes China. The Bodisen brand is a highly recognized fertilizer brand in China. Its environmentally friendly "green" products support the mandate of the Chinese government to increase crop yields for the purpose of decreasing China's dependency on food imports. Utilizing proprietary agricultural technologies, Bodisen sells over 60 packaged products, broken down into 4 product categories: Organic Compound Fertilizer; Organic Liquid Fertilizer; Pesticides & Insecticides, and agricultural raw materials. Bodisen's organic fertilizers are government certified as "organic" and can be absorbed by plants within 48 hours and enrich soil conditions without the damaging effects associated with chemical fertilizers. Bodisen's products address grains, vegetables, and fruit crops and have been proven to increase crop yields by 10% to 35% while being environmentally friendly. Among China's population of 1.3 billion, approximately 750 million are farmers or have agriculture-related jobs whose incomes depend on their crop yields. With approximately 600 (and growing) nationwide distribution centers, Bodisen has experienced rapid growth.

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.

                    BODISEN BIOTECH, INC. AND SUBSIDIARIES
        CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
        FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2006 AND 2005
                                     (UNAUDITED)

                   Three Month Periods Ended     Six Month Periods Ended
                             June 30,                    June 30,
                   --------------------------- ---------------------------
                       2006          2005          2006          2005
                   ------------- ------------- ------------- -------------
Net Revenue        $  16,382,189 $   8,416,805 $  26,917,549 $  13,118,480

Cost of Revenue        9,970,253     5,161,141    16,269,374     8,208,639
                   ------------- ------------- ------------- -------------

Gross profit           6,411,936     3,255,664    10,648,175     4,909,841

Operating expenses
  Selling expenses       671,469       231,768     1,145,643       379,908
  General and
   administrative
   expenses              546,738        14,709       850,962       709,882
                   ------------- ------------- ------------- -------------
    Total operating
     expenses          1,218,207       246,477     1,996,605     1,089,790

                   ------------- ------------- ------------- -------------
Income from
 operations            5,193,729     3,009,187     8,651,570     3,820,051

Non-operating
 income (expense):
  Other income
   (expense)             656,916            --       532,375            --
  Interest income         29,231        48,055        57,294        48,055
  Interest expense          (198)     (365,228)     (678,918)     (379,360)

                   ------------- ------------- ------------- -------------
    Total
     non-operating
     income (expense)    685,949      (317,173)      (89,249)     (331,305)

                   ------------- ------------- ------------- -------------
Net income             5,879,678     2,692,014     8,562,321     3,488,746

  Other comprehensive
   income
  Foreign currency
   translation (loss)    158,603            --       118,103            --
  Unrealized gain on
   marketable equity
   security           (3,384,580)           --    (1,093,797)           --

                   ------------- ------------- ------------- -------------
Comprehensive
 Income            $   2,653,701 $   2,692,014 $   7,586,627 $   3,488,746
                   ============= ============= ============= =============

Weighted average
 shares outstanding:
  Basic               18,176,917    15,272,926    17,698,731    15,270,759
                   ============= ============= ============= =============
  Diluted             18,310,931    15,692,205    17,848,452    15,562,010
                   ============= ============= ============= =============

Earnings per share:
  Basic            $        0.32 $        0.18 $        0.48 $        0.23
                   ============= ============= ============= =============
  Diluted          $        0.32 $        0.17 $        0.48 $        0.22
                   ============= ============= ============= =============




                         BODISEN BIOTECH, INC. AND SUBSIDIARIES
                               CONSOLIDATED BALANCE SHEET
                                   AS OF JUNE 30, 2006
                                       (UNAUDITED)

                                   ASSETS
                                   ------
CURRENT ASSETS:
Cash & cash equivalents                                         $17,447,381
Accounts receivable, net of allowance for doubtful accounts of
 $697,209                                                        17,613,943
Other receivable                                                  1,526,114
Inventory                                                         1,145,025
Advances to suppliers                                             8,934,286
Prepaid expense                                                      47,714
Other current assets                                                  2,083

                                                                 ----------
Total current assets                                             46,716,546

PROPERTY AND EQUIPMENT, net                                       5,160,897

CONSTRUCTION IN PROGRESS                                          2,618,316

MARKETABLE SECURITY                                               5,716,637

INTANGIBLE ASSETS                                                 2,072,233

                                                                 ----------
TOTAL ASSETS                                                    $62,284,629
                                                                 ==========

                     LIABILITIES AND STOCKHOLDERS' EQUITY
                     ------------------------------------

CURRENT LIABILITIES:
Accounts payable                                                $ 1,852,149
Other payables                                                      154,246
Accrued expenses                                                    497,017

                                                                 ----------
Total current liabilities                                         2,503,412

STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 per share; authorized 5,000,000 shares;
 none issued
Common stock, $0.0001 per share; authorized 30,000,000 shares;
issued and outstanding 18,176,917                                     1,818
Additional paid-in capital                                       32,860,075
Other comprehensive income                                        3,555,315
Statutory reserve                                                 3,742,991
Retained earnings                                                19,621,018
                                                                 ----------
Total stockholders' equity                                       59,781,217

                                                                 ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $62,284,629
                                                                 ==========