Fuwei Films to Benefit from Recent Hike of Export Rebate for BOPET Films

BEIJING, June 11 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films in China, today announced that the Chinese central government has raised the export rebate rate for BOPET films from 11% to 13%, effective June 1, 2009.

This was the second hike of BOPET film export rebate rates for Chinese manufacturers this year. On March 27, 2009, as part of the economic stimulus for key industries, China increased such rate from 5% to 11%.

"Higher export rebate rates are good news for Fuwei Films, as we still have more than 10% of our sales overseas, despite a 50% drop in export sales from last year," said Xiaoan He, Chairman and Chief Executive Officer of Fuwei Films. "BOPET films are considered one of the key sectors among China's generally referred to as 'light industries,' and as a result, the government has taken strong measures to support exporters such as Fuwei Films. As a leading manufacturer, we could use this government preferential treatment to increase our competitiveness and position ourselves for market share gains overseas as the economic recession continues to abate."

About Fuwei Films

Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Shandong. Fuwei Shandong develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei's BOPET film is widely used to package food, medicine, cosmetics, tobacco, and alcohol, as well as in the imaging, electronics, and magnetic products industries.

Safe Harbor

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the U.S. Securities and Exchange Commission which, among other things, include both the short and long-term effects of the global financial crisis on the Company and the BOPET film industry; competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in China; uncertainty as to future profitability and our ability to obtain adequate financing for our planned capital expenditure requirements; uncertainty as to our ability to continuously develop new BOPET film products and keep up with changes in BOPET film technology; risks associated with possible defects and errors in our products; uncertainty as to our ability to protect and enforce our intellectual property rights; uncertainty as to our ability to attract and retain qualified executives and personnel; and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in view of the volatility in the prices of petroleum products in recent years. The forward- looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release. Actual results of our operations may differ materially from information contained in the forward- looking statements as a result of the risk factors.

    For more information, please contact:

    In China:

     Ms. Maggie Huang
     Investor Relations Manager
     Phone: +86-10-8518-5620
     Email: fuweiIR@fuweifilms.com

    In the U.S.:

     Ms. Leslie Wolf-Creutzfeldt
     Investor Relations
     Grayling
     Phone: +1-646-284-9472
     Email: leslie.wolf-creutzfeldt@us.grayling.com

SOURCE Fuwei Films (Holdings) Co., Ltd.