SOURCE: Dragon International Group Corp.

February 10, 2006 16:55 ET

Dragon International Group Corp. Posts 2nd Fiscal Quarter

Revenues Increase 75% Over Same Period for Fiscal 2005

FORT LAUDERDALE, FL and NINGBO, CHINA -- (MARKET WIRE) -- February 10, 2006 -- Dragon International Group Corp. (OTC BB: DRGG), one of China's leading manufacturers and distributors of specialty paper products and packaging materials, filed results for its second fiscal quarter ended December 31, 2005.

The Company recorded revenues of $4.869 million for the three month period ended December 31, 2005, a 75% increase over the similar period in 2005, when it generated revenues of $2.773 million. Income from operation increased to approximately $372,271, compared to a loss of $13,301 reported for the same period in fiscal year 2005. The Company recorded comprehensive income of $118,626 after a one-time, non-cash charge of $294,356 related to debt financing as compared to a loss of $42,043 for the same period in fiscal year 2005. The Company attributes its improved results to the assimilation of new acquisitions undertaken during 2005 and its attempt to curtail costs by consolidating operations of certain subsidiaries. For more details about Dragon's financial performance, please review the Form 10-QSB filed with the United States Securities and Exchange Commission.

Chairman and CEO David Wu stated: "We are pleased with our financial performance for the second quarter. Our goal for 2006 is to continue to increase revenues and control expenses, thereby improving profitability and strengthening our balance sheet. We also expect to continue our acquisition strategy."

About Dragon International Group Corporation

Dragon International Group Corp. (OTC BB: DRGG) owns 100% interest in Ningbo Anxin International Company, Limited ("Anxin"). Anxin, established in 1997, is located in Ningbo, Zhejiang Province, China, approximately 200 miles south of Shanghai. Anxin is one of China's leading manufacturers and distributors of specialty paper products and packaging materials. Anxin is operating as a manufacturer and distributor of paper and integrated packaging paper products. Anxin, through a subsidiary, holds an ISO9000 certificate and national license to import and export products. In addition to its own operations, Anxin operates four subsidiaries, including: (i) Jiangdong Yonglongxin Special Paper Company, Limited, (ii) Hangzhou Yongxin Paper Company, Limited, (iii) Ningbo Xinyi Paper Product Industrial Company, Limited, and (iv) Xianyang Naite Research & Development Center. Anxin 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 manufactures of paper and specialty packaging products. Fore more information, please visit http://www.drgg.net.

Safe Harbor Statement

Certain of the 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, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. 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. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited financial resources, domestic or global economic conditions, especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential 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.

Contact Information

  • Contact:

    Market Solutions, LLC
    Tel: 561-487-3674
    Fax: 561-237-2925
    Email: info@drgg.net