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CHINA FLEXPACK ATTRACTS PROMINENT INSTITUTIONAL INVESTORS - Investors include NewSmith and another institution - Completes share placement of 20 million new shares at S$0.48 each - Funds raised to finance capacity expansion and increase share liquidity

Singapore, July 13, 2007 - China Flexible Packaging Holdings Limited (“China Flexpack” or “the Group”), ( 中中中国 软 包包包装装装 控 股 有 限 公 司 ) one of China’s leading manufacturers of Biaxially Oriented (“BOPP”) film and synthetic , today announced that the Group had successfully completed its placement of 20 million new Shares at an issue price of S$0.48 per share, raising net proceeds of approximately S$9.28 million.

The NewSmith Asia Absolute Fund together with another reputable institutional investor subscribed for 20 million new shares at S$0.48 each, which represents approximately 4.48% of China Flexpack’s enlarged share capital.

The net proceeds from the Placement will be used to partially finance the acquisition of a new biaxially oriented polypropylene production line to expand the Group’s production capacity. Pending the deployment of net proceeds, the net proceeds will be added to the Group’s working capital and /or used for investment in short-term money market or debt instruments, as the Directors may deem appropriate.

Commenting on the placement, Mr Chong Yuen, Executive Chairman of China Flexpack said, “The inclusion of leading institutions such as NewSmith amongst our list of shareholders will undoubtedly enhance our corporate profile. We are heartened by the strong institutional support for this placement exercise, which demonstrates the market confidence in the future prospects of China Flexpack. The proceeds from this

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placement will also enable us to accelerate our growth plans to leverage on the growing demand for our products. We are now poised to forge ahead with our growth plans and strategies.”

The subscription price and placement price of S$0.48 represents a discount of approximately 0.7% to the weighted average price of S$0.4835 for trades done on the SGX-ST on June 22, 2007 and the half-day morning session of June 25, 2007.

China Flexpack reported a net profit of RMB85.2 million on the back of a revenue of RMB546.4 million for the six months ended April 30, 2007 (“1H FY07”). The Group has continued to see growing demand for its products, resulting in its current production facilities operating at a utilisation rate of over 90%. The Group therefore plans to expand its production capacity by investing in at least one new BOPP production line to cater to the expected growth in demand for the Group’s products.

Meanwhile, the Group’s metallised film production line is scheduled to commence operations in the end of 2007, with a targeted production capacity of 8,000 metric tones per annum. The new production line will enable the Group to further process and add value to its low shrinkage film products, and in turn lift the margins of its low shrinkage film products.

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About NewSmith Asia Absolute Fund

The NewSmith Asia Absolute Fund is managed by the NewSmith Capital Partners LLP group. Founded in 2003, NewSmith Capital Partners is an independent investment management and advisory partnership, with offices in London, Singapore, Hong Kong, Tokyo and New York. Wholly owned and financed by its equity partners, the partnership provides asset management services via NewSmith Asset Management LLP, and corporate finance advice through NewSmith Financial Solutions Ltd.

NewSmith Captial Partners has assets under its management of approximately US$7.5 billion, invested with a range of strategies including long-only and long/short equity and credit.

About China Flexible Packaging Holdings Limited

Listed on the Main Board of the SGX-ST in February 2004, China Flexpack is principally engaged in the production and sale of BOPP film, a type of flexible packaging material, widely used as a packaging material in many industries such as food and tobacco as well as other industries involving labeling, and gift wrapping.

The various types of BOPP film produced by the Group include high shrinkage film such as tobacco film and labeling film, and low shrinkage film such as pearlised film, matt film and plain films for printing, and . The Group also produces synthetic paper, which is a packaging material with attributes of paper and plastic, commonly used in commercial packaging, printing, food, medical and cosmeceutical industries. In 2006, the Group also launched the 5-layer BOPP film which is mainly used for the vacuum packaging of meat products.

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China Flexpack is one of the few BOPP film manufacturers with a dedicated research team devoted to R&D work. It operates one plant in Jieyang City, Guangdong, with three production lines. Two of these production lines have the capabilities to manufacture three-layer BOPP film products while the third production line has the capability to produce five-layer BOPP film and synthetic paper.

For more information, please contact:

ISSUED ON BEHALF OF : China Flexible Packaging Holdings Ltd BY : Citigate Dewe Rogerson, i.MAGE Pte Ltd 1 Raffles Place #26-02 OUB Centre SINGAPORE 048616 For China Flexible CONTACT : Mr Jackson Tso EMAIL : [email protected]

For CDR, i.MAGE CONTACT : Ms Chia Hui Kheng / Ms Jean Zhuang at telephone DURING OFFICE HOURS : 6534-5122 (Office) AFTER OFFICE HOURS : 9781-5913 / 9781-3924 (Handphone) EMAIL : [email protected] [email protected]

106/07/003/CFPH July 13, 2007

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