China Linen Textile Industry Receives Orders From Belgium, India

China-based linen yarn and fabric manufacturer China Linen Textile Industry Ltd. reports it
recently received new international orders for linen yarn. A company in India has placed an order
worth US$1.5 million, and a Belgium-based company has ordered US$0.3 million worth in linen yarns.
China Linen’s Lanxi, Heilongjiang, plant will produce the yarns to fulfill the orders, and the
company expects the complete orders to be shipped by the end of the year. The company reports the
gross margins for both orders are approximately 30 percent, and the customers will produce finished
goods such as personal home and apparel products using the yarns.

“I am very pleased to announce these two new orders from customers for the export market,”
said Gao Ren, chairman and CEO, China Linen. “These orders represent a significant milestone in our
international sales strategy and demonstrate our ability to expand into new markets by leveraging
our high-quality products and unparalleled customer service. … We believe that our emphasis on
international expansion, coupled with growth of domestic market, will yield significant growth in
2010 and beyond.”

June 16, 2010