ChinaSecurities

Located in Xi’an, China, Asia Cork, Inc. is a rapidly growing leader in the development, manufacturing and marketing of cork-based building materials. Cork is a ‘green’ renewable resource harvested only from the bark of the cork oak tree, thus leaving forests generally undamaged. The company’s product lines include raw cork materials, semi-finished cork and finished cork products such as cork floorboards and cork wallboards. Approximately 75% of the company’s products are sold within China and the rest are sold overseas to customers in the United States, Germany, Japan and India. The company currently capitalizes on six technological patents, to which the company has exclusive rights. The company operates in China under the Xi’an Hanxin brand. More information may be found at http://www.hxrm.com.

Third Quarter (2008) Financial Highlights

• Third quarter increase of 117% in revenue to approximately $8.96 million compared to the third quarter of 2007, primarily due to increased sales of finished cork floorboards and wallboards

• An increase of 41% sequentially in revenue from approximately $6.37 million for the second quarter of 2008

• An increase of 94% in cost of sales. Cost of sales accounted for 65% of net revenues, as compared to 72% of net revenues a year ago

• A 177% increase in gross profit to approximately $3.15 million for the third quarter of 2008 compared to approximately $1.14 million for the comparable quarter of 2007

• An increase in gross profit percentage from 28% to 35% year-over-year, mainly due to increased sales in higher margin products

• A 147% increase in total operating expenses to approximately $1.34 million, due to increased selling expenses, freight costs and commissions associated with increased revenues

• A 220% year-over-year increase in net income to $1.40 million, and sequentially, an 83% increase from $761,675 in the second quarter of 2008