China Shuangji Cement Ltd.(fka CSGJ)

[Tanaka]

The industrialization and urbanization progress in China should continue to expand the demand for cement products. Due to the rising cement price domestically and the removal of export rebates on cement product in July 2007, China had experienced a 10% decline in cement exports in the second half of 2007 over previous comparable period (pcp). The impact from the removal of export rebates has only been here for about half a year, so it will become clearer after the full year of 2008. Analysts are forecasting that China's net cement export will be maintained at 40 million tons between 2008 and 2010. Taking into account both domestic and export cement demands, China's cement industry shall see a 10% pa growth in demand in the next three years.