SHENZHEN, China, June 20, 2006 (PRIMEZONE) -- New Dragon Asia Corp. (AMEX:NWD), one of China's leading producers of instant noodles, flour-related products and soybean derived products, today announced that it has obtained HACCP (Hazard Analysis Critical Control Point) certification from CCIC Conformity Assessment Services Co. Ltd., a Chinese quality assurance examination authority, enabling the company to begin exports of instant noodles and soybean powder to Europe.
Li Xia Wang, Chief Executive Officer of New Dragon Asia Corp., said, "The certification for our high quality products for export to Europe is a critical step forward in the execution of our growth strategy. Export sales are a key growth driver for our business, providing higher margins than domestic sales and enhancing the Company's bottom line through additional tax benefits. In 2006, we are targeting a 50% increase in exports to approximately 12% of total company net sales, driven by continued growth in Asian markets and the opening of major new markets for our products in Europe."
New Dragon Asia currently exports instant noodles to several Asian countries and is actively pursuing new customers in Europe. The Company is currently processing its first orders for instant noodles from customers in Sweden and Greece, with initial deliveries scheduled for later this June or early July. New Dragon Asia also expects to begin exporting soybean powder to Europe in the coming months. As a result of the acquisition of its export distributor in late 2005, the Company is able to more effectively control all elements of the value chain in the production and export of these products.
HACCP is a systematic approach to identifying and eliminating hazards (microbiological, chemical or physical) in order to produce the highest quality food products. The implementation of HACCP is a legal requirement for many American and most European food companies.
About New Dragon Asia Corp.
New Dragon Asia Corp., a Florida corporation (AMEX:NWD) is headquartered in Shandong Province, China and is engaged in the milling, sale and distribution of flour and related products, including instant noodles and soybean-derived products, to retail and commercial customers. As the fourth largest instant noodle manufacturer in China, New Dragon Asia markets its well-established Long Feng brand through a network of more than 200 key distributors and 16 regional offices in 27 Chinese provinces with an aggregate production capacity of approximately 195,000 tons of flour and more than 1.1 billion packages of instant noodles per year. Instant noodles are also exported to a growing number of countries. For more information, visit the Company's website at www.newdragonasia.com.
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, its success with acquisitions, anticipated synergies, and overseas expansion. 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; 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 may be discussed in the Company's reports as periodically filed with the Securities and Exchange Commission.