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Orient Paper To Re-Audit Fiscal Year 2008 Financial Results

Thursday 24. March 2011 - Orient Paper, Inc. (AMEX: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in northern China, today announced that its financial statements for the fiscal year ended December 31, 2008 (FY 2008) included in the Annual Report for the fiscal year 2008 and fiscal year 2009 are not considered to be audited due to lapsed licenses of its previous audit firm, Davis Accounting Group P.C. ("Davis Accounting"), at the time of auditing the Company's FY 2008 financial statements.

The Company had no knowledge that Davis Accounting’s license in Utah lapsed until 2011. During the time when Davis Accounting was retained by the Company, Davis Accounting represented that it was in good standing.
The Company is in the process of engaging its current independent registered public accounting firm, BDO Limited, the Hong Kong member firm of the BDO International network (“BDO Limited”), to re-audit its fiscal year 2008 financial results. The re-audit does not impact the Company’s financial statements for fiscal year 2009 and fiscal year 2010, both of which were audited by the Company’s new registered independent public accounting firm, BDO Limited. The Company has informed the NYSE AMEX about the re-audit of its FY 2008 financial statement.
Mr. Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper commented, “We are not aware of any other information at this time which leads us to believe that our financial statements for 2008 are materially incorrect in any way. We have been in communication with the SEC and PCAOB to determine the best course of action. We are in the process of engaging our current auditor, BDO Limited, to perform a re-audit of the Company’s 2008 financial statements in order to confirm the accuracy of those financial statements. We anticipate that the re-audit will be completed by the beginning of the third quarter of 2011, if not earlier.”