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North China Environmental Protection Work May Hamper Orient Paper

Orient Paper Inc. is preparing for its upcoming comprehensive environmental protection inspection, which is part of a large-scale special pollution inspection conducted by the local authorities in China.

Liu Zhenyong, chairman and chief executive officer of Orient Paper, commented, "We will fully cooperate with the government's inspection and are confident that we will be able to comply with all their rigorous tests. While we are excited about the ongoing tissue paper and production line renovation projects which will bring further growth to our business, we remain firmly committed to environmental protection and will place a top priority in undertaking all necessary procedures and systems to ensure a sustainable business for Orient Paper."

The Xushui County government, in response to a series of environmental pollution incidents and public health crises in North China in recent months, will be handling the inspections. An executive order was issued by the county government on February 26, 2013, to all manufacturers in a wide range of industries which operations have potential environmental impact. Regarding this inspection, the multi-government agency inspection will examine all aspects of environmental protection practice, especially waste water discharge.

According to the executive order, the special inspection will last from February 26 to March 31, 2013, with on-site field examinations scheduled for March 1 through March 10. During the inspection period, Orient Paper says its water treatment facilities and production activities may be interrupted.



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