Asia Fiber Holdings' Majority Owned Subsidiary Signs Letter Of Intent For Acquisition To Increase Profits By 40 Percent; Company Unveils Aggressive Growth Strategy.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--April 9, 2001

Asia Fiber Holdings Limited (OTCBB:AFBR), a U.S. Corporation that manufactures and distributes polyester fiber for use in apparel and industrial textiles, today announced that its majority owned subsidiary, Harbin Asibao Chemical Fiber Co., Ltd. ("Asibao"), has executed a Letter of Intent with Heilongjiang Longdi Limited Liability Company ("Longdi") to acquire four multifunction polyester chip production lines.

Asia Fiber Holdings anticipates that the acquisition of the multifunction chip production lines will immediately increase Asibao's profits by approximately 40 percent. Upon the completed acquisition, Asibao will have assured its raw material supply needs and established a vehicle to develop new value-added products while expanding its product specification capabilities. This will lead directly to a significant expansion of production output and a further increase of profitability. The four production lines to be acquired exceed all international standards and include the most advanced Distributed Control System (DCS) available.

Although the year-end audited financials are expected soon, the trailing twelve months (ttm) numbers from September 30, 2000 reflect revenues of approximately $67 million and a net income of $4.3 million. This reflects earnings per share of $0.17 with a (ttm) P/E ratio of 12. The Company believes that showing such significant earnings growth in today's publicly traded markets should help build shareholder value.

Ching Lung Po, Chairman of Asia Fiber Holdings, stated, "The planned acquisition of the production lines from Longdi coincides with the Company's plans to further strengthen its market position as a leading polyester producer through an aggressive acquisition campaign. The Company intends to more than double its annual production capacity through acquisitions of additional production plants shortly."

About Asia Fiber Holdings Limited

Asia Fiber Holdings Limited, incorporated in the state of Delaware, is the controlling shareholder of Harbin Asibao Chemical Fiber Co. Ltd. ("Asibao"), a major manufacturer and distributor of polyester fiber for use in apparel and industrial textiles, based in the People's Republic of China ("PRC").

Asibao is a registered Sino-foreign joint venture, with Asia Fiber Holdings owning 70 percent and the balance of Asibao's shares held by Heilongjiang Longdi Group Co. Ltd. ("HLG"), a China state-owned enterprise. The main products of Asibao are polyester filament and polyester staple fiber. The annual production of approximately 10,000 tons and 44,000 tons respectively, are sold to more than 300 manufacturers. Asibao is one of the top 500 largest foreign-invested enterprises in the PRC, and, together with its 30 percent shareholder, HLG, is the 2nd largest consortium in the chemical fiber industry in China.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This news release may contain forward-looking statements relating to future performance, technology and product development that may impact future results and the future viability of the Company. Actual results could be affected or differ materially from those projected in the forward-looking statements as a result of various risk factors. More information about factors that potentially could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission.