Asia Fiber Holdings Ltd. Anticipates Sales Revenue Increases of 10 Percent in 2001 and 18 Percent in 2002 Through Internal Growth.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--June 8, 2001

Company Projects up to US$12 Million in Additional Sales Revenue

From New Product Development and Widening of Its Sales Network

Asia Fiber Holdings Ltd. (OTCBB:AFBR) today announced that its operations plan for 2001 is being implemented smoothly and that it anticipates up to US$12 million of increased sales revenue solely through the execution of its internal growth strategy, which is focused on new-product development and the widening of its sales network.

When realized, the company's internal growth strategies will alone account for an approximate 18 percent increase in the company's sales revenue.

In addition to its internal growth strategy, the company expects to realize additional significant growth through its aggressive acquisition campaign. In the short term, the company is targeting to more than double its annual production capacity through acquisitions of other production plants and increase its profits by 40 percent.

Pursuant to its internal growth strategy, Asia Fiber Holdings has successfully developed five new quality products, including three- dimension twisting yarn, separate-dying filament, complex superfine filament, superelastic yarn and positive-ion coloring yarn. Management believes that these new products will generate additional sales revenue of US$6 million annually.

Asia Fiber Holdings is also taking advantage of and capitalizing on the policy of the People's Republic of China to open up markets in western China. Built on its existing client bases in Shaanxi Province, the company's management is spreading its sales network into Xinjiang Province and Qinhai Province, both located in western China, in order to attract new clients. Management believes that this strategy will bring in additional sales revenue of between US$3.6 million and US$6 million annually.

Ching Lung Po, chairman of Asia Fiber Holdings, stated: "We are intently focused on successfully executing our internal growth strategy, and expect that our new quality products and the widening of our sales network will alone culminate in a substantial increase of up to 10 percent in our sales revenue for 2001, as compared to our sales revenue for 2000, and a total of 18 percent on a rolling 12-month basis."

Ching Lung Po added, "This anticipated 18 percent increase in sales revenue is solely based upon our internal growth strategy and does not take into account the additional growth the company expects to realize from its aggressive acquisition campaign."

Statements made in this news release concerning predictions of performance and the company's plans and objectives are not historical facts and constitute forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve important risks and uncertainties that may cause results to differ materially from those set forth in this news release. All forward-looking statements are subject to the successful completion of actions described in the news release. Readers should carefully review the company and publicly available filings thoroughly with their registered investment adviser or registered broker.