SOURCE: FuWei Films

Fuwei Films

September 16, 2010 08:50 ET

Fuwei Films Reports Strong Sales in BOPET Films

BEIJING--(Marketwire - September 16, 2010) -  Fuwei Films (Holdings) Co., Ltd. (NASDAQ: FFHL) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films in China, today reported a strong upturn in the sale of BOPET films during the third quarter of 2010.

The overall Chinese BOPET film industry is growing rapidly. In July and August the average sales price of Fuwei Films has increased over 10% compared with the first half of this year. Certain products have seen price increases of over 20% compared to the first six months of 2010. According to industry estimates in China, prices may continue to rise significantly in the next a few months.

Due to high demand, Fuwei Films is at high production levels for its products. Due to improved market conditions, the company expects the financial results of the second half of 2010 to be increased compared with the first six months of the year.

"Since the second quarter, the demand for BOPET films has been increasing, particularly coming from overseas customers," said Mr. Xiaoan He, Chairman and CEO of Fuwei. "We believe this presents a great opportunity to improve Fuwei's performance by allowing us to develop our business in general and realize better earnings in the third quarter."

About Fuwei Films

Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Fuwei Shandong"). Fuwei Shandong develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei Films' 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 which, among other things, include both the short and long-term effects of the global financial crisis on the Company and the BOPET film industry; 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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