SOURCE: FuWei Films

Fuwei Films

December 03, 2009 09:00 ET

Fuwei Films Announces Receiving RMB 10 Million in Additional Financial Support From Chinese Government

BEIJING--(Marketwire - December 3, 2009) - Fuwei Films (Holdings) Co. Limited (NASDAQ: FFHL) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films located in China, today announced that its wholly owned subsidiary -- Fuwei Films (Shandong) Co. Ltd. ("Shandong Fuwei") recently received RMB 10 million financial support in the form of a loan from the local Chinese government.

Since 2008, Chinese companies have been adversely impacted by the global financial crisis. In response to the economic conditions in China, the Chinese government has introduced a series of stimulus packages. In November 2009, the Company received the RMB 10 million financial support after completing the necessary procedures with the local Chinese government. Shandong Fuwei is one of the two companies in the Weifang High-tech Area which has acquired this financial support from the government. Shandong Fuwei is planning to use this project fund in accordance with the needs of the company.

This financial support is an eight-year long-term loan with an interest rate of 5.346% and equal installments of RMB 3.3 million to be paid within 3 years prior to the expiration of the loan.

"We are glad that our subsidiary has been awarded the financial support from the local Chinese government. We believe that this long term loan demonstrates the Chinese government's endorsement in the long-term outlook of Fuwei Films," said Mr. Xiaoan He, the chairman and CEO of Fuwei Films. "We will continue to commit ourselves to the operation of the Company and enhance the equity of the shareholders."

About Fuwei Films

Fuwei Films conducts its business through its wholly owned subsidiary Shandong Fuwei Films Co., Ltd. ("Shandong Fuwei"). Shandong Fuwei develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei's BOPET film is widely used to package food, medicine, cosmetics, tobacco and alcohol, as well as in the imaging, electronics, and magnetic products industries.

Safe Harbor

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the U. S. Securities and Exchange Commission some of which are among other things, competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in China; uncertainty as to future profitability and our ability to obtain adequate financing for our planned capital expenditure requirements; uncertainty as to our ability to continuously develop new BOPET film products and keep up with changes in BOPET film technology; risks associated with possible defects and errors in our products; uncertainty as to our ability to protect and enforce our intellectual property rights; uncertainty as to our ability to attract and retain qualified executives and personnel; and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in view of the volatility in the prices of petroleum products in recent years. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release. Actual results of our operations may differ materially from information contained in the forward-looking statements as a result of the risk factors.

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