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Orient Paper Announces Unaudited Preliminary Results for Fiscal Year 2010

Friday 18. February 2011 - Orient Paper, Inc. (Amex: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in Hebei, China, today announced unaudited preliminary results for the fiscal year ended December 31, 2010. The Company will release full financial results and file its Form 10-K on or before March 16, 2011.

For the fiscal year ended December 31, 2010, total unaudited revenue increased 21% to approximately $124.0 million from $102.1 million in the year ended December 31, 2009. Full year 2010 unaudited net income was approximately $15.5 million, up 22% from $12.7 million for the year ended December 31, 2009. Net income was impacted by more than $1 million in legal, accounting and professional expenses related to the independent investigation by the audit committee, which has now been successfully concluded. Fourth quarter net income of $5.4 million, exceeded the company’s previous guidance for adjusted net income of at least $5.0 million, which excluded the impact of non-recurring legal and professional expenses.
“Looking into 2011, we anticipate strong revenue growth and profitability driven by growing market demand for paper products, tightening regional supply conditions as a result of government-mandated closures of regional paper mills, and capacity additions from our new 360,000 tons per annum corrugating medium paper production line, which is scheduled to be completed by the end of the first quarter of 2011.”
The Company reaffirms its 2011 guidance of revenues of between $186 million and $206 million, gross profit of between $36 million and $40 million, net income of between $24 million and $27 million, and basic and diluted earnings per share of between $1.33 and $1.46 as previously announced.