SOURCE: Decor Products International, Inc.

December 15, 2009 10:16 ET

Decor Products International Raises $2.3 Million in Private Funding

DONGGUAN, CHINA and CHARLOTTE, NC--(Marketwire - December 15, 2009) - Decor Products International, Inc. (OTCBB: DCRD) ("Decor") is pleased to announce the completion of private funding in the amount of $2,340,000.

Decor has secured $2,340,000 in private funding to be used for the following purposes:

--  Set up new and more efficient printing production lines
--  Pay off existing debt
--  Any remaining funds shall be used for general working capital

The interest rate on the loan will be 8% per annum, paid quarterly, with a maturity date of November 10, 2010. Warrants for consideration in the amount of Ten United States Dollars ($10.00) and as incentive to lend money to CHDITN Printing Co. Ltd., the Registrant's wholly owned subsidiary in China. The Warrants entitle the lender to purchase from the Company at any time or times on or after November 10, 2009, but not after 11:59 P.M. Eastern Time on the Expiration Date of November 10, 2014, Three Hundred and Forty Thousand (340,000) fully paid and nonassessable shares of Common Stock of the Company at the exercise price per share of One dollar ($1.00) or as subsequently adjusted as provided in the Warrant.

On November 10, 2009, the Company's Board of Directors issued Two Million Three Hundred Forty Thousand (2,340,000) Warrants to purchase Two Million Three Hundred Forty Thousand (2,340,000) shares of the Company's Common Stock. The Warrants were issued as incentive to lend money to CHDITN Printing Co. Ltd., the Registrant's wholly owned subsidiary in China. The Warrants were issued, pursuant to the Securities Act of 1933, as amended, and applicable state law. Specifically, we relied on section 4(2) of the Securities Act of 1933. These shares were issued based on the following facts:

(1) the issuance was an isolated private transaction which did not involve
    a public offering;
(2) there was only one offeree;
(3) the offeree has agreed to the imposition of a restrictive legend on the
    face of the stock certificate representing its shares, to the effect
    that it will not resell the stock unless its shares are registered or
    an exemption from registration is available;
(4) the offeree was a sophisticated investor very familiar with our company
    and stock-based transactions;
(5) there were no subsequent or contemporaneous public offerings of the
(6) the stock was not broken down into smaller denominations; and
(7) the negotiations for the sale of the stock took place directly between
    the offeree and our management.


Decor, or decoration paper, is a specialty paper used to finish the surface of wood materials. Wood-grain decor paper, used in the manufacture of furniture and laminated flooring, is one of the fastest growing grades of paper in the world. The production of decor paper requires very specific technological know-how.

Decor initiates research and development in manufacturing decor papers, those include 30g-120g PU paper, polyester paper, melamine paper, wear-proof paper, 3D wood grain paper, as well as different kinds of environmentally friendly decorative papers.

Decor has taken the lead in introducing advanced microcomputer intaglio (gravure) printing production equipment. The company can fulfill customer requests by providing tailor-made product design and color matching services.

Decor had revenues of $7,442,839 and $17,116,465 for the three and nine months ended September 30, 2009. The revenues increased in the third quarter of 2009 by $483,007 compared to the same period in 2008 due primarily to the recovery from global financial crisis, which had impact on our revenues significantly in 2008.

With the new production line for laminated board fully started as of September 2009, we expect that our sale revenues will grow steadily from 2010 due to our core production switching from the decor paper to laminated board, which is considerably more profitable.

Forward-Looking Statements:

Except for the historical and current factual information contained herein, this release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Certain statements in this release and the attached corporate profile that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements.

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