FORT LAUDERDALE, Fla., Aug. 3, 2005 (PRIMEZONE) -- Dragon International Group Corp. (OTCBB:DRGG), one of China's leading manufactures and distributors of a wide variety of specialty paper products and packaging materials, has acquired a 60% stake in Hangzhou Yongxin Paper Company, Limited ("Yongxin"). Dragon completed the transaction via a share exchange agreement, issuing 1,000,000 restricted shares of common stock.
Dragon will consolidate Yongxin's operations in its new manufacturing facilities in Ningbo. Management estimates that the acquisition should serve to double annual revenues of packaging materials from the current base of $8 million to approximately $16 to $20 million per year. Furthermore, Dragon expects to realize additional efficiencies by consolidation operations. Dragon will take advantage of Yongxin's excellent client base, that, to broad its offerings and sales of its paper packaging products.
Mr. Wu, President of Dragon International, concluded, "This acquisition is proof of our commitment to increase shareholder value. We believe that the dynamic increases taking place in the industry in China offers Dragon a tremendous growth opportunity in the coming years. Presently we are evaluating more acquisition candidates as we aggressively pursue our acquisition plan to consolidate the paper packaging industry in China."
About Dragon International Group Corporation
Dragon International Group Corp. ("Dragon") owns 100% ownership interest of Ningbo Anxin International Trade Co. Ltd. ("Anxin"). Anxin is located in Ningbo, Zhejiang Province, China, 200 miles south of Shanghai, and was established in 1997. Anxin is one of China's leading manufacturers and distributors of a wide variety of specialty paper products and packaging materials. Anxin operates one subsidiary, Yonglongxin, a manufacturing facility located in Ningbo, and Anxin holds an ISO9000 certificate and national license to import and export its product line globally. Anxin's main products are "Federal" SBS, "Hang Kong" CCB, golden and silver paperboards, holographic film paper, pearl paperboards and laminating paper. Anxin currently has a distribution network covering east and central China. The Company and its subsidiary have cultivated strategic relationships with several of the world's largest and well-known manufacturers of paper and specialty packaging products. For more information, please visit http://www.drgg.net.
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