HONG KONG, June 23, 2005 (PRIMEZONE) -- FP Group, Ltd. (Pink Sheets:FPGR) announced today that it has entered into a letter of intent to build a new production facility in Huizhou, China.
Huizhou is located in the northern part Guangdong Province in the Peoples Republic of China ("PRC"), a major industrial area. The new factory is expected to be ready during the fourth quarter of this year. The facility will double the capacity of the Company.
The new facility was decided on as result of one of the Company's major clients moving to Huizhou. FPG, Chairman and CEO Leo Wong, stated "Although the current facility is more than adequate to support significant growth in the Company, the new facility will allow us to reduce certain cost such as labor, fuel, rent and transportation. We anticipate that our savings will be approximately 15% of our current operating cost. In addition to production, we intend to utilize the facility to strengthen our research and development team and work closely with clients in that area." Mr. Wong added that "This facility will allow the Company to be more price competitive in this region and speed up our anticipated revenue growth."
Cost related to the facility will come from working capital of the company.
About FP Group, Ltd.:
FPG is a Peoples Republic of China-based company providing a full range of logistical management in the printing and packaging industry. FPG provides a one-step service including consultation, design, sourcing, printing, assembly and delivery of packaging needs. FPG's products include items for which they hold design patents in the PRC. For more information, please visit our corporate website: www.fpgroup.com.hk
FPG is continually developing new design and packaging concepts. Growth of FPG will come from additional business with its current customer base and attracting new customers as a result of the services and products they offer. FPG intends to take advantage of its market position by seeking other firms for the possibility of merger or acquisition.
Statement under the Private Securities Litigation Reform Act:
With the exception of the historical information contained in this release, statements above describing objectives or goals or our future plans are forward-looking statements and are subject to certain risks and uncertainties, including among other factors the ability of FPG to increase revenues in the future, the ability to maintain a positive cash flow, and the ability to retain existing customers and obtain new customers, its ability to create and market new packaging concepts, the printing and packaging business in general, future governmental regulation as well as other factors which could cause actual results or revenues to differ materially from those contemplated by these statements.