EAST OF MUPONG, YANTAI, SHANDONG, People's Republic of China, Feb. 1, 2005 (PRIMEZONE) -- Yantai Dahua Holdings Company Limited (OTCBB:YDHCF) announced today that the board of directors has approved a private placement offering to accredited investors to raise up to $8 million in the form of secured convertible debentures. The proceeds from the debenture offering will be used to finance a new plant facility and production equipment for specialty thin paper products. The new plant and equipment is expected to increase overall annual production capacity from 28,000 tons to 36,000 tons of paper. The specialty thin paper products will allow Yantai to offer a premium, high-end product to its customers.
The final terms of the private placement of secured convertible debentures have not been determined. Yantai has engaged an investment banking firm to act as its exclusive placement agent on a "best efforts" basis. There is no guarantee that the private placement will be completed or that any funds will be raised from this offering.
ABOUT YANTAI
Yantai is engaged in, through its subsidiaries, the manufacture and sale of paper principally for printing and writing in China. The major types of paper products manufactured by Yantai are printing paper, writing paper, computer paper and other paper, including newsprint. Yantai is a leading paper manufacturer in Shandong, China and employs over 1,000 staff. It has six sales offices throughout China and over 200 customers, including publishing houses, printing companies and state-owned material supplies companies.
FORWARD LOOKING STATEMENTS
The statements in this release contain certain forward-looking statements concerning, among other things, the future plans and objectives of Yantai's management. These forward-looking statements can be identified by the use of such words as "plans," "anticipates" and "expects." Actual results might differ materially from such plans, anticipations and expectations, due to general economic conditions, supply and demand for paper, labor conditions, the availability of requisite financing and other factors.