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Fuwei Films Announces Dismissal of the HKG Case by the American Arbitration Association

Thursday 16. April 2009 - Fuwei Films (Holdings) Co., Ltd. (NASDAQ:FFHL) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films located in China, today announced the dismissal of Hampden Kent Group LLC ("HKG")'s claims against the Company filed by the American Arbitration Association ("AAA")'s International Centre for Dispute Resolution ("the ICDR"), without prejudice to HKG's right to re-file these claims.

In December 2007, HKG filed a demand for arbitration with the ICDR, seeking a penalty fee against the Company in the amount of $3.8 million, relating to services allegedly performed by HKG in attempting to provide financing to the Company pursuant to an August 19, 2006 agreement between the parties. Pursuant to the agreement, any dispute between the parties was to be resolved by binding arbitration in accordance with the AAA’s Commercial Arbitration Rules.

“We are glad the arbitration case is now behind us,” said Mr. Xiaoan He, Chairman and CEO of Fuwei Films. “With the case dismissed, we can now devote more attention to our business and use our leadership position in the BOPET industry to accelerate R&D and gain more market share both domestically and overseas.”

The arbitration was dismissed because of the nonpayment of the deposits due in accordance with the AAA. The Panel had previously ordered that the case would be terminated on February 6, 2009, if a full deposit of the arbitrators’ fees was not received by that date. At the request of HKG, this deadline was twice extended. HKG’s recent request for a further extension of time to remit the required fees was denied. The Company had paid all but a nominal amount of its portion of the deposits owed.