BVI-based Pulp Importer to sell its 51% stake to Dragon International Group

On January 16, 2007 Dragon International Group has announced entering into a stock purchase agreement with BVI-registered Wellton International Fiber Corp. According to this agreement, Dragon is purchasing 51% of Wellton International Fiber in an all stock transaction.

Wellton International Fiber, which is domiciled in the British Virgin Islands and based in Hong Kong, is an importer of market pulp in China. In 2006, Wellton generated approximately US$18.5 million of revenues, with over US$1 million in net income. Based on the audited net tangible assets of Wellton, Dragon will issue restricted shares of its common stock. The shares will be issued upon completion of auditing at the closing of the deal, which is expected by March 31, 2007. Dragon expects to issue shares not to exceed a value of US 1,500,000.

The chairman and CEO of Dragon International Group, David Wu, has commented, “We feel confident in our ability to merge the Wellton operations into our own and achieve synergies that will enhance both our operations.“

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