Dragon International Group Corp (fka DRGG)

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Press Release Source: Dragon International Group Corp.

Dragon International Group to Acquire Hainan Jinguang Pharmaceutical Company, Limited
Monday November 20, 9:45 am ET

NINGBO, CHINA--(MARKET WIRE)--Nov 20, 2006 -- Dragon International Group Corp. (OTC BB:DRGG.OB - News), one of China's leading manufacturers and distributors of specialty paper products and packaging materials, announced today it has signed a letter of intent to acquire Hainan Jinguang Pharmaceutical Company, Limited ("Jinguang"), a distributor and manufacturer of Chinese herb medicines.

Jinguang, located in the Hainan province of China and founded in 2002, is an innovative, technologically sophisticated enterprise, focused on traditional Chinese Li medicine, one of the major traditional Chinese medicinal herbs. Jinguang has developed its own research and development center under GLP standards, a planting farm under GAP standards, manufacturing facilities under GMP standards, and a dedicated salesforce under GSP standards. Over the past 2 years, Jinguang has invested more than US$4 million in building farming and manufacturing facilities, including 110 acres of land and GMP manufacturing facilities. It is expected that Jinguang will generate approximately US$15 million in annual sales in 2007, which is projected to grow to approximately US$29 million in annual revenues in 2008. While terms of the agreement were not disclosed, Dragon International will begin due diligence on Jinguang.

Mr. David Wu, CEO and Chairman of Dragon International Group Corp., stated, "We are very excited about this potential acquisition, as we have been following Jinguang's development for a while. Jinguang has been our client for several years, and we believe we can facilitate Jinguang's substantial growth in revenues and earnings by infusing work capital, since Jinguang has completed construction of its farming and manufacturing facilities. The addition of Jinguang would diversify our business and enhance our strong growth prospects in revenues and earnings for years to come."

About Dragon International Group Corp.

Dragon International Group Corp. (OTC BB:DRGG.OB - News) is one of China's manufacturers and distributors of specialty paper products and packaging materials. DRGG is operating as a manufacturer and distributor of paper and integrated packaging paper products. DRGG has a distribution network covering east and central China. Dragon and its subsidiaries have cultivated strategic relationships with several of the world's largest and well-known manufacturers of paper and specialty packaging products. For more information, please visit http://www.drgg.net.

Safe Harbor Statement

Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements, including the Company's ability to obtain sufficient financing to fund both its internal growth opportunities and acquisition strategy. More information about the potential risks and factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission at http://www.sec.gov.


Contact:

Contact:
Andrew Brown
ROI Group Associates, Inc.
Tel: [phone]
Email: [e-mail]