Anticipates $1.5 Million in Product Sales for 2009

Dragon International Group Corp., a manufacturer and distributor of specialty paper products and packaging materials in China, recently announced it has completed the evaluation and testing of a new and improved suppository composite film product that meets all the requirements for pharmaceutical packaging applications. Dragon International has recently requested a permit from China's State Drug and Food Administration to manufacture and sell this new film product and it expects to receive approval within the next three months.

The expected launch of this new product represents another step in Dragon International's initiative to migrate to higher margin sophisticated packaging for the pharmaceutical industry. Management anticipates that gross margins for this new product category should be in the 15% to 20% range and sees product sales in this category of approximately $1.5 million for the fiscal year ending June 30, 2009. The company has a strong technical department and intends to increase its product development efforts in order to bring additional packaging products to the market in the coming quarters.

The new suppository composite film is manufactured at a 100,000 level GMP workshop using proprietary manufacturing techniques, and meeting all product quality requirements by ISO9001 standards. The film product also has minimal environmental impact and has passed the ISO 14000 certification, exceeding China's State Drug and Food Administration standards. The film product is smooth, easy to tear, shapes well for better performance, and is particularly suitable for temperature and humidity-sensitive packaging suppositories. Dragon International's composite film has no unusual toxicity, and can be in direct contact with suppository medicines, with no physical and chemical effects. This new composite film can also be applied to packaging for other drug formulations which are the same or similar to suppositories.

"Our new composite film expands Dragon's offerings as our pharmaceutical packaging initiatives continue to develop. We are confident that our continued emphasis on our pharmaceutical family of packaging products will bring incremental revenue growth that should have a positive impact on our bottom line," stated David Wu, Chairman of Dragon International.

About Dragon International Group Corporation

Dragon International Group Corp. is a manufacturer and distributor of specialty paper products and packaging materials in China. DRGG has a distribution network covering east and central China. The Company and its subsidiaries have cultivated strategic relationships with several of the world's largest and most well-known manufacturers of paper and specialty packaging products. Dragon's Wellton International Fibre Corp subsidiary operates as an agent of pulp and related paper products, primarily acting as an agent and supplier for two categories of goods: paper pulp and waste paper. Wellton customers are manufacturers of paper and related products. The majority of Wellton's customers purchase both products using the services of Wellton. Paper pulp and waste paper are raw materials used to manufacture paper related products such as packaging products, office paper and other paper related products. For more information, please visit http://www.drgg.us.