SOURCE: Dragon International Group Corp.

October 16, 2006 08:30 ET

Dragon International Group Posts Record Revenues and Operating Income for FY 2006; Proforma EPS of $0.02

NINGBO, CHINA -- (MARKET WIRE) -- October 16, 2006 -- Dragon International Group Corp. (OTCBB: DRGG), one of China's leading manufacturers and distributors of specialty paper products and packing materials, today announced record operating results for the fiscal year ending June 30, 2006. The Company posted $18.43 million in net revenues, a 63% increase over fiscal year 2005 net revenues of $11.28 million. Dragon generated $1.227 million in operating income, a 620% increase compared to $175,000 in fiscal 2005. Excluding stock-based compensation and non-cash charges related to Dragon's July 2005 debt financing and its conversion into equity this past fiscal year, EPS would have been $0.02 per share. The Company ended the fiscal year with stockholder equity of $8.246 million, approximately $0.14 per share, a record level for the Company. For more information about our financial performance, please review our 10K filing with the United States Securities and Exchange Commission.

Mr. David Wu, Chairman and CEO of Dragon International Group, stated, "Our financial performance for 2006 is beginning to show the benefits of our efforts. If debt conversion and related non-cash interest charges are reversed, which amount to more than $3.3 million, we would have EPS of $0.02 per share. Going forward, these charges will no longer impact our financials, so the results will be even clearer for investors. Our growth plan is very robust, as we continue to evaluate new acquisition candidates, and have substantial opportunities for internal growth. We will expand our existing product lines by introducing innovative solutions for our customers, as well as growing the customer base for our current products."

About Dragon International Group Corp.

Dragon International Group Corp (OTCBB: DRGG) is one of China's leading manufacturers and distributors of specialty paper products and packaging materials. DRGG is operating as a manufacturer and distributor of paper and integrated packaging paper products. DRGG has a distribution network covering east and central China. Dragon and its subsidiaries have cultivated strategic relationships with several of the world's largest and well-known manufacturers of paper and specialty packaging products. For more information, please visit http://www.drgg.net.

Safe Harbor Statement

Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements, including the Company's ability to obtain sufficient financing to fund both its internal growth opportunities and acquisition strategy. More information about the potential risks and factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission at http://www.sec.gov.

Contact Information

  • Contact:
    Andrew Brown
    ROI Group Associates, Inc.
    Tel: 212-495-0202
    Email: abrown@roiny.com