SHENZHEN, China, Oct. 19, 2006 (PRIMEZONE) -- New Dragon Asia Corporation (AMEX:NWD), one of China's leading flour, instant noodle and soybean powder manufacturers, announced today that it has begun exporting its instant noodles to Tesco plc, a leading international supermarket group based in the United Kingdom. The exporting of its products follows New Dragon Asia's receipt of HACCP certification in June 2006. The first order from Tesco was processed by New Dragon Asia's Yantai factory.
Li Xia Wang, New Dragon Asia's CEO said, "Our instant noodle export business is beginning to gain momentum. Tesco is one of the world's most successful supermarket groups and we are pleased to have been chosen to provide them our products. Expansion of our business through exports is a key strategic component for growth, as our export sales generally produce higher margins than our domestic sales. New Dragon Asia now has customers in Sweden, Greece and a high-profile customer in the UK. We plan to continue seeking new sales opportunities in Europe. We are on track to meet our goal to increase export sales by 50% in fiscal 2006, which should lead to export sales comprising 12% of our total instant noodle sales for the year."
About New Dragon Asia Corporation
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. It has an aggregate production capacity of approximately 195,000 tons of flour, more than 1.1 billion packages of instant noodles, and 4,500 tons of soybean powder and protein powder per year. New Dragon products are exported through Hong Kong and South East Asia, including Singapore, Malaysia, South Korea and Australia. HACCP approval, obtained in June 2006, allows the export of New Dragon products to Europe, with orders already received from that region. The company has approximately 2,000 employees. 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.