PACRIM INTERNATIONAL CAPITAL INC. ANNOUNCES AGREEMENT TO DEVELOP MARKET FOR SOLID BOARD PACKAGING PRODUCTS IN CHINA

HONG KONG, Feb. 7 /CNW/ - PACRIM INTERNATIONAL CAPITAL INC. (PCN:TSX) ("Pacrim") holds 46% of the outstanding shares of Pacrim International Capital Holdings Inc., which in turn has an indirect 75.07% interest in Wah Sang Paper Products (Shenzhen) Co. Ltd. ("WSPP"), a packaging company in the People's Republic of China.  Pacrim is pleased to announce that WSPP has signed an exclusive marketing agreement with Netherlands-based Smurfit Kappa Solid Board Mills ("SK SBM"), a division of Smurfit Kappa Group, for the mutual development of the market in China for solid board packaging products.  WSPP imports, produces, and markets packaging products and packaging solutions.  SK SBM is a solid board sheet manufacturing company that markets its sheets for packaging purposes in Europe, the United States, Africa, and Asia. 

The objective of the marketing agreement is to develop the Chinese market for solid board packaging products using the sheets of SK SBM.  The solid board packaging products market is currently almost non-existent in southern China where WSPP has a strong customer base.  SK SBM will supply to WSPP on an exclusive basis solid board packaging sheets and technical assistance in the converting of solid board packaging products.   SK SBM will also assist in the design and marketing of solid board packaging products in China.

The Chinese retail market for solid board packaging products is developing rapidly.  Western logistical approaches are being adopted in order to meet the rapidly growing market demand for a wider variety of fresh products.   International retail chains and local retail companies are rapidly expanding their businesses in China and creating demand for more sophisticated packaging.  Markets that will be targeted include meat, poultry, fish, and fruits and vegetables (fresh or frozen).  Low volume markets such as specialized or luxury packaging and displays are also to be targeted. 

About Pacrim International Capital Inc.

Pacrim International Capital Inc. ("Pacrim") is an investment holding company with its investments focused to date mostly in southern China.  Pacrim's business strategy includes participation in the paper products and packaging industry in the Pearl River Delta area of southern China, the heart of the "World's Factory".  Pacrim intends to enter the diabetes treatment field in China and also the assisted living residence business (including diabetes clinics) in the United States.  The company's head office is in Hong Kong with offices in Shenzhen, Guangzhou and Beijing.

Caution concerning forward-looking statements

Statements made in this news release, other than those concerning historical financial information, should be considered forward-looking and subject to various risks and uncertainties.  Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend" or "continue" or the negative thereof or similar variations.  Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements.  Factors that could cause results to vary include, but are not limited to: risks associated with China including state ownership, government sector intervention, foreign investment, repatriation of profit and currency conversion, tax, the developing legal system, protection of intellectual property rights, shareholder rights and enforcement of judgments, permits and business licenses, appropriation, political stability considerations, the central planned economy, fluctuations in foreign exchange rates and Chinese accounting and auditing standards; risks in business and operations including risks associated with expansion, future capital requirements, dependence on key personnel, environmental regulation, competition, risk in purchasing abroad, risk of change in the price of raw materials, product price volatility, insurance and operating plant risk; customer risk including risk of a single market and risk depending on major customers; technical risk including risk in the advance of technology and risk of relying on technology abroad; financial risk including foreign exchange risk, credit risk, liquidity risk, cash flow and fair value interest rate risk; investment strategy risk; and short term management transition risk.

We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of Pacrim's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis and our other periodic filings with Canadian securities regulatory authorities.  All forward-looking statements presented herein should be considered in conjunction with such filings.  Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time-to-time by us or on our behalf; such statements speak only as of the date made.

SOURCE Pacrim International Capital Inc.

For further information:

Guy Lam
Chief Executive Officer
Pacrim International Capital Inc.
Tel. 852.2526.1554

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Pacrim International Capital Inc.

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