Packaging

American Lorain Corp Leases New Facility for Food Production

Monday 30. June 2008 - American Lorain Corporation (BULLETIN BOARD: ALRC) ("American Lorain" or the "Company"), an international packaged foods company based in Shandong, People's Republic of China (PRC), today announced that it has leased a food production facility in Dongguan, Guangdong Province, PRC.

American Lorain leased 60,000 square feet of facilities, consisting of two buildings on June 10, 2008. The lease term on the facilities is for ten years. One of the buildings will be used for office space and the other one will be used for food production. The food production facility measures approximately 38,750 square feet and will be equipped with a refrigeration storage unit with a 1,000-ton capacity. The Company plans to equip the production facility with cash on hand. The Company plans to produce packaged foods and convenience foods products such as pickled vegetables, prepared meat, and noodles at the new production facility.

“By expanding our business operation to the Guangdong Province in Southern China, we expect to not only lower our transportation costs, but also to be close to our customers,” said Mr. Si Chen, Chairman and Chief Executive Officer of American Lorain. “We believe that leasing versus constructing a new facility allows us to ramp up production sooner than if we were to build our own facility. We expect to start production at the new facility by early September,” added Mr. Si Chen.