Dragon International Group Corp (fka DRGG)

[Bandito]

During the nine months ended March 31, 2007, Ningbo Dragon generated revenues of $9,965,382, as compared to revenues of $10,341,050 for the nine months ended March 31, 2006, a decrease of $375,668. This decrease is a result of the loss of a customer, Indonesia APP Group Company, during the current quarter. For the nine months ended March 31, 2007 this customer accounted for approximately $5,824,000. For the nine months ended March 31, 2006 this customer accounted for approximately $6,200,000 of revenues.