Orient Paper to Build Paper Milling Facility

New York, New York, USA, and Hebei, China, 27 May 2008 --(BUSINESS WIRE)-- Orient Paper Inc. (OTCBB: OPAI - News), one of China's largest paper milling manufacturers, is planning to build a new paper milling production facility in the second half of 2008. The facility will have an annual production totaling 1.2 million tons.

The facility will occupy approximately 2 million square meters. Its main products will be corrugated paper, offset paper, writing paper, and diazo paper. Once the facility is operational, initial production is anticipated to be approximately 0.5 million tons. By 2010, annual production could reach approximately 1.2 million tons and sales will be between USD 800 million and USD 1.3 billion, with net income in the range of USD 160 million to USD 230 million.

Zhenyong Liu, CEO of Orient Paper stated, "The completion of our new facility will enable us to rapidly increase our income and profitability over the next two to three years. It is going to be a very large facility that will enable us to compete with the biggest paper businesses in China as well as the rest of the world. This is just another positive step forward for our growing company and its shareholders".

Orient Paper has engaged China BCEL International Engineering Co. Ltd to issue a feasibility report with regard to this paper milling production facility. The location will be in the Hebei Province, Baoding City, Xushui Town, where Orient Paper Inc. is headquartered. Preliminary approval has been granted by the local government.

Currently, the company has approximately 100 customers. With its location near Beijing, it is positioned in a market that consumes approximately 15,000 tons of paper each day.