SOURCE: Dragon International Group Corp.

January 11, 2007 08:30 ET

Ludlow China Initiates Research Coverage on Dragon International Group

NEW YORK, NY -- (MARKET WIRE) -- January 11, 2007 -- New York-based Ludlow China initiates research coverage on Dragon International Group Corp. (OTCBB: DRGG), one of China's leading manufacturers and distributors of specialty paper products and packaging materials, with a price target of $0.50 per share.

RECENT EARNINGS

For the three months ending September 30, 2006, the Company reported total revenues of $4,832,984, compared to $4,622,110 for the same period in 2005. Net loss for the third quarter of 2006 decreased to ($82,326), as compared to a net loss of ($446,357) for the same period in 2005.

INVESTMENT HIGHLIGHTS

- Striving to create a dynamic integrated company, management seeks to position Dragon to capitalize on the explosive growth in China's packaging industry.

- The company is actively developing various strategies to become a dominant player in the sector through consolidation by acquisitions and the expansion of its sales force.

- Management has been in place since 1997 demonstrating an ability to create substantial growth in revenue as well as profits.

- Strong growth plan with internal expansion and external acquisition by management will grow revenues of $35 million and $57 million, anticipated to result in $2.17 million and $4.42 million of net income for each of 2007 and 2008, respectively.

A full version of Ludlow China's research coverage and risk factors on Dragon International Group Corp. (DRGG) can be found at http://www.theasianinvestor.com/reports/drgg.htm.

About Dragon International Group

Dragon International Group Corp. (OTCBB: DRGG) is one of China's 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.

About Ludlow China Small Cap Index

The Ludlow Small Cap China Index is a basket of some of the top US traded OTC and small cap Chinese stocks. The Index provides institutional and individual investors a gauge for tracking the day to day performance of small cap Chinese stocks in a diversified basket. The index is designed for investors who have a long-term bullish outlook on China's emerging market. The Ludlow China Small Cap Index is owned and operated by Ludlow China Fund, Inc., based in New York City. www.ludlowcapital.com/indices/

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:

    1-877-CHINA-57
    Email: info@drgg.net

    Gerry Salazar
    Ludlow China Fund
    718-855-8451