DGAP-News: Asian Bamboo enters a strategic partnership with Shaowu Zhongzhu

Asian Bamboo AG / Alliance

18.02.2009 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Asian Bamboo enters a strategic partnership with Shaowu Zhongzhu

Hamburg, 18 February 2009 - Asian Bamboo AG ('Asian Bamboo', ticker Symbol
'5AB'), a world leading producer of bamboo trees and organic bamboo shoots,
is pleased to announce a strategic partnership with Shaowu Zhongzhu Pulp
and Paper Co. Ltd. ('Shaowu Zhongzhu').

Shaowu Zhongzhu is one of the leading bamboo based pulp and paper producers
in China with an annual production capacity of around 100,000 tons. The
company is located in Shaowu city in Fujian province, close to many of
Asian Bamboo's plantations.
As part of the strategic partnership, Asian Bamboo will be the prime
supplier of bamboo trees used as raw material for the production of the
company's pulp and paper. It is estimated that Shaowu Zhongzhu will use
around 300,000 tons of bamboo trees as input material for its pulp and
paper production in 2009. In addition, Asian Bamboo will support Shaowu
Zhongzhu's business development by providing management support and
expertise.

Mr. Lin Zuojun, CEO and founder of Asian Bamboo commented: 'We are excited
about entering into this strategic partnership with Shaowu Zhongzhu, which
is a pioneer in the bamboo based pulp and paper business. The industry has
great potential and I believe this partnership will bring us closer to the
industry and increase the demand for our bamboo trees, which we expect will
lead to higher prices.'


About Asian Bamboo AG:

Asian Bamboo Group is a world leading producer of Moso bamboo trees and
organic bamboo shoots. Bamboo trees are used as scaffolding or as input
material for flooring, pulp and paper, and furniture production. Organic
bamboo shoots are sold fresh in agricultural markets or processed for the
Japanese market or domestic distribution. The Company currently owns
long-term leasing rights for 24 bamboo plantations with a total acreage of
26,628 hectares in Fujian Province, the main area for growing Moso bamboo
in China.

Asian Bamboo Group's registered office is located in Hamburg, Germany and
the Company is listed on the Prime Standard of the Frankfurt Stock Exchange
under the ticker symbol '5AB'.

Further information on Asian Bamboo AG, please visit the Company's web-site
at: www.asian-bamboo.com


About Shaowu Zhongzhu:

Shaowu Zhongzhu is the largest bamboo pulp production company in China and
the company is currently owned by Zhongzhu Paper Industry Group Co., Ltd.,
a privately owned company. Currently the annual production capacity is
around 100,000 tons, which is estimated to increase to 150,000 tons by
2010. The company mainly produces high-end copy paper and pulp with bamboo
as its main raw material.

Shaowu Zhongzhu’s factory is located in the Wangtang area of Shaowu City,
in the northwest of Fujian province. The plant occupies 930,000 square
meters of land and has a total of 703 employees. The company’s key
equipment is imported from Canada, Finland, Germany and Sweden. The company
has passed ISO9001: 2000 and has established an effective quality
management system.


About the pulp and paper industry in China:

The pulp and paper industry in China has experienced an annual compound
growth rate of 8.6% during the past decade and China is today the second
largest market in the world behind the US. China’s per capita consumption
equaled 50 kg in 2006, which is below the world average of 60 kg and well
below developed nations such as the US (310 kg) and Japan (245 kg).

The Chinese paper and paperboard industry is very fragmented, with around
3,500 companies operating in 2006. The top ten companies account for around
24% of the total production.

Bamboo based pulp and paper currently account for less than 1% of the total
industry output. However, the PRC government is actively promoting non-wood
paper pulp production from bamboo. During the 11th Five-Year plan
(2006-2010), the government is aiming at further increasing bamboo pulp
capacity.

Third party experts estimate that four tons bamboo may produce one ton
paperboard and the unit cost for manufacturing one ton of paper pulp from
bamboo is 30% lower than that of pine, while the paper quality is almost
the same.


Contact:

Asian Bamboo AG:
Peter Sjovall +852-9385 3868
Chief Financial Officer

Anja Holst +49-(0)40 37644 798
Representative – Germany


DGAP 18.02.2009 
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Language:     English
Issuer:       Asian Bamboo AG
              Stadthausbrücke 1-3
              20355 Hamburg
              Deutschland
Phone:        +49 40 37644 798
Fax:          +49 40 37644 500
E-mail:       info@asian-bamboo.de
Internet:     www.asian-bamboo.de
ISIN:         DE000A0M6M79, DE000A0M6M79
WKN:          A0M6M7, A0M6M7
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Stuttgart
End of News                                     DGAP News-Service
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