▌ News Releases

Ever-Glory Announces Letter of Intent to Acquire Nanjing Catch-Luck Garment Company Limited

Add: 2006   Update: 2009/03/21

LOS ANGELES, CALIFORNIA--(MARKET WIRE)--May 4, 2006 -- Ever-Glory International Group (OTC BB:EGLY.OB - News), an international manufacturer of apparel, announced that the Company has executed a Letter of Intent to acquire the majority or all outstanding shares of Nanjing Catch-Luck Garment Company Limited. Closing of the transaction is subject to certain due diligence and customary closing conditions and is expected to take place within 60 days. Moreover, the acquisition will be accretive to earnings.

The basis for determining the market valuation for the transaction will be based on the comparative market value of the business, valued at more than US$ 4,000,000.00 by Savills, a reputable and internationally recognized Valuation and Consultancy Firm, using the discounted cash flow approach. As a result of the acquisition, Nanjing Catch-Luck Garment Company Limited will become a majority or wholly-owned subsidiary of Ever-Glory.

Edward Kang, President and CEO of Ever-Glory commented, "We are excited about the opportunity to grow our business in a new direction with the acquisition of Nanjing Catch-Luck Garment Company Limited. This transaction represents another significant step toward achieving our goal of dynamic growth through new products and synergistic acquisitions," he concluded.

The addition of Ever-Glory's management team and infrastructure will greatly strengthen Nanjing Catch-Luck Garment Company Limited's already-established millions in revenue as well as strengthen worldwide expansion efforts for their and The Company's products. With $10.8 M in sales reported in Ever Glory International Group's Annual Report in 2005, this acquisition will anticipate to immediately add an additional US$16.5 million to annual revenues, as well as accelerate overall international growth, expansion, and profitability.

"We have been looking for good acquisition candidates that will both enhance our operations and create value for our shareholders. This acquisition does both. Ever-Glory is looking forward to another year of strong performance and record profitability," concluded Mr. Edward Kang, President and CEO of Ever-Glory.

This is a large milestone for Ever-Glory International Group and one that Mr. Edward Kang and his management team have set as a strategic goal. The Company has a strong management team with an unsurpassed commitment to customer service which has enabled them to excel in all aspects of their business.

About Ever-Glory International Group

Ever-Glory International Group (OTC BB:EGLY.OB - News) is a U.S. publicly-traded company engaged in international garment manufacturing for well-known middle to high-grade casual, outer, and sportswear brands. The company's U.S. headquarters is based in Los Angeles, CA; although Ever-Glory also owns a full subsidiary company, Nanjing Goldenway Garments Co. Ltd. located in China. Ever-Glory has strategic marketing and logistics channels located in, Japan, Europe, and United States and has strategic business partners in countries including China, Europe and the U.S. The Company cooperates with well-respected garment retailer chains such as ITOCHU, ABERCROMBIE & FITCH (ANF), SHINKO , DEBENHAMS , NEXT, OTTO , C&A, I.Y, etc. in handling high and middle grade casual-wear and sportswear. The company entered into production and sale cooperation agreements with a number of internationally famous brands such as MATALAN, EB, BEST-SELLER, BB DAKOTA, FAT FACE, LINDEX,and JUST JEANS, etc. The company employs about 700 people. At present, the market distribution is segmented as 35% in Japan, 50% in Europe and the 15% in United States.

About Nanjing Catch-Luck Garment Company Limited

The Company is engaged in the sales and manufacture of casual wear, sports wear and outer wear for many middle to high brands and retailers. Its manufacturing facilities are located in Nanjing in the PRC.

About Savills Valuation and Professional Services Limited

Savills is an international network of property professionals providing integrated services to clients through 112 offices in Asia Pacific, Australia, South Africa and Europe and through our strategic alliance with Trammell Crow Company in the Americas. Savills is the trading name for the property service subsidiaries of Savills plc, which has a full listing on the London Stock Exchange. The company employs a staff of 14,500 worldwide. As one of Hong Kong's largest, most reliable and efficient advisory teams, Savills is carrying out over 5,000 valuation assignments each year. Synergy with Savills' agency and research divisions ensures Savills has access to the most up-to-date market intelligence. In addition to offering the full range of standard valuations, Savills undertakes valuations tailored to client requirements, combining both market research and financial analysis. Savills provides high quality, comprehensive services to tenants who comprise a broad cross section of the international business community.

For more information about Savills Valuation and Professional Services Limited, please visit: http://www.savills.com.hk/.

This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors are detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities.

Contact:

Contacts:

Ever-Glory International Group Inc.

Ms. Sarah Liu

(626) 839-9116

info@everglorygroup.com

http://www.everglorygroup.com.

--------------------------------------------------------------------------------

Source: Ever-Glory International Group Inc.