Research from Huicong.com Indicates Paper Industry in China is Very Strong

Business Wire,  June 17, 2008  

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NEW YORK & HEBEI, China -- Orient Paper, Inc. (OTCBB: OPAI) (the "Company") announced today that a leading B2B E-commerce website in China, Huicong.com (http://www.hc360.com/), published market research results of paper industry in China recently. The results are outlined as follows:

* In recent years, the growth rate of the development of the paper industry in China has been higher than the growth rate of GDP.

* The trend of rapid development continued in 2007 and the first quarter in 2008. Industry profitability, investments in fixed assets and the industry economy are all experiencing a growth trend, such that the industry is gradually moving into a boom cycle.

* Statistics from Huicong.com indicate that in past two years, China's paper industry was constrained by the control of the amount of money invested into the industry.

* Price increases were also attributed to the shutdown of small paper milling factories because of inability to meet the environmental discharge standards.

Many paper products increased in price in the third quarter in 2007; the price of writing paper, offset paper, white paperboard, as well as coated paper increased by approximately $70 per ton. Corrugated paper and kraft paper increased by $25 to $35 per ton, which indicates that a potentially strong upward trend in production and sales in 2008 will be seen.

A spokesperson for the management of the Company stated, "From the price of China's paper industry and market fluctuation, the fact that we position ourselves in the mid-grade and high grade offset paper, photographic paper, kraft paper and corrugated paper is very reasonable and sensible. And it also indicates the potential for continued excellent economic benefits that we achieved in the first quarter this year."

As stated in previous earnings release, the Company's net revenues for the first quarter of 2008 increased 66.04% to $13.5 million compared to $8.1 million for the first quarter of 2007. First quarter's net income was $1.4 million, compared to $0.78 million for the first quarter of 2007, with earnings per share increasing to $0.04 per diluted share compared to $0.02 per diluted share for the comparable period of 2007.

"In the future, we will continue these productions lines as our main focus and strengthen our advantages in research and development, production and marketing, to consolidate our profitability further and provide better returns to our shareholders," the spokesperson said.

Forward-Looking Statements

With the exception of historical information, the matters discussed in this press release and on our website referenced herein include forward-looking statements that involve a number of risks and uncertainties about Orient Paper and its subsidiaries and their respective businesses and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the People's Republic of China, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors, changes in technology, and various other factors beyond its control. In some cases, you can identify forward-looking statements by use of words such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other similar words. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Orient Paper undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

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