HONG KONG, June 9, 2004 (PRIMEZONE) -- New Dragon Asia Corp. (Amex:NWD) today announced it has received an additional order with a potential value of approximately US$1.1 million for flour from the purchasing agents of KFC in China. It follows an initial order the company received from KFC in December 2003.
The purchase price and supply terms of the order are fixed, but no quantity commitment is quoted in the new agreement, which has a duration of six months. Additional terms were not disclosed.
"The extension of business from KFC's purchasing agents represents an excellent opportunity to expand our sales. It clearly demonstrates the importance of maintaining rigorous production standards and offering our customers the highest quality. We look forward to additional opportunities to leverage our relationship with one of China's leading quick-service restaurant chains and other customers of this caliber," said Heng Jing Lu, chief executive officer.
New Dragon noted that the agreement with KFC stipulates specific packaging and storage requirements for the flour products, with the company expected to incur some additional costs to meet KFC's specifications.
About KFC
KFC, a subsidiary of Yum! Brands (NYSE:YUM), is a leading worldwide quick-service restaurant chain, with locations in approximately 150 cities in China. The company opened its first restaurant in Beijing in 1987. In September 2002, KFC opened its 700th KFC restaurant in Shenzhen, China.
About New Dragon Asia
Headquartered in Shandong Province, P.R.C., with a corporate office in Hong Kong, New Dragon Asia Corp. is engaged in the milling, sale and distribution of flour and related products, including instant noodles, to retail and commercial customers throughout China. The company markets its well-established product line through a network of 216 key distributors and 16 regional offices in 27 Chinese provinces with an aggregate production capacity of approximately 110,000 tons of flour and more than 1.1 billion packages of instant noodles.
Safe Harbor
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations and financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products and pricing; changes in consumer preferences and tastes or perceptions of health-related issues; effectiveness of advertising or market-spending programs; changes in laws and regulations; fluctuations in costs of production, foreign exchange and interest rates; and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.