Five Points, California, USA
June 16, 2010

S&W Seed Company (NasdaqCM: SANW), a leader in breeding and developing proprietary alfalfa seed varieties, today announced financial results for the three and nine months ended March 31, 2010.

Third Quarter and Recent Highlights

• Revenues increased 14% year-over-year to $5,500,504 from $4,816,435 for the nine months ended March 31, 2010.
• Revenues increased 9% year-over-year to $839,306 from $771,631 for the three months ended March 31, 2010.
• Gross profit margins decreased slightly to 17% for the 2010 third quarter but increased to 29% for the year to date results.
• Research and development expenses have increased as a result of entering a new line of business by beginning the operation of a stevia breeding and cultivation pilot project.
• Net income for the nine months ended March 31, 2010 totaled $739,556, which is up 14% compared to the prior year.
• In May 2010, completed its initial public offering ("IPO") of 1,400,000 units at $11 per unit, with each unit consisting of two shares of common stock, one Class A warrant and one Class B warrant, and raising gross proceeds of $15,400,000. The common stock and warrants began separately trading on June 14.

"We are very pleased with our operating results for the 2010 third quarter. Despite the weak dairy market, we were successful in growing revenues 9% in the current quarter and 14% year to date. This growth is primarily attributed to improved pricing and an increase in our average sales price of milled alfalfa seed," commented Matthew Szot, Chief Financial Officer of S&W Seed Company.

"We are very excited about the opportunities at hand. Our strong balance sheet will put us in a great position to capitalize on gaining market share and further our sales and marketing and R&D initiatives," said Mr. Szot.

Third Quarter Financial Results

Revenue for the three months ended March 31, 2009 was $771,631 compared to $839,306 for the three months ended March 31, 2010. The increase was primarily driven by a 19% increase in the average selling price of milled seed, partially offset by an 8.7% decrease in the volume of seed sold. Gross margins on seed revenue decreased in the current period as the average selling price of our seed increased by 19% and the average cost of seed sold increased by 24%.

We have arrangements with our growers for the production of seed for harvest periods beginning in August 2010 and ending in October 2010. These grower contracts will be approximately 18% less than the 2010 Fiscal Year product price.

Selling, general and administrative expenses for the three months ended March 31, 2010 increased 24% to $253,347 from $204,367 for the three months ended March 31, 2010. The increase in current period was due primarily to increased personnel costs for sales and marketing.

Research and development expenses ("R&D") for the three months ended March 31, 2010 increased to $68,088 from $12,331 in the prior year period. R&D expenses increased in the current period due to stevia product development expenses initiated in fiscal 2010. We also increased our alfalfa seed product development expenses in the current period in order to fund continued development and improvement of our seed varieties.

Income tax benefit totaled $66,602 for the three months ended March 31, 2010 and represents the tax benefit to be realized in future periods for losses incurred since we completed the January 28, 2010 exchange transaction.

We had net loss including non-controlling interests of $142,355 for the three months ended March 31, 2009 compared to $204,589 for the three months ended March 31, 2010. The 44% increase in net loss in the current period was attributable primarily to the increase in SG&A, R&D and interest expenses.

S&W Seed Company, founded in 1980, is a leader in warm climate alfalfa seed varieties, including varieties that can thrive in poor, saline soils. The company's claims to salt tolerance and high yield product leadership are verified by decades of university-sponsored trials. S&W owns a 40 acre alfalfa seed cleaning and processing facility. Over 50% of its sales are to Genetics International who sells to foreign end users, principally in Saudi Arabia. In fiscal 2010, the company launched a pilot program to produce stevia leaf, the source of an all natural, non-caloric sweetener. For more information on the company, please visit their website www.swseedco.com

Website: http://www.swseedco.com/

Published: June 16, 2010