CY Oriental Holdings Ltd. Updates its Delay in Filing Financial Statements



    VANCOUVER, June 11 /CNW/ - CY Oriental Holdings Ltd. (TSX-V: CYO) ("CY
Oriental" or the "Company") today announced that pursuant to the terms of the
management cease trade order issued by the British Columbia Securities
Commission, as principal regulator, barring the Company's insiders from
trading CY Oriental shares until the Company's audited financial statements
for the fiscal year ended December 31, 2007 are filed, the Company announces
that the filing delay continues to be necessary to provide additional time to
gather and review documentation relating to the Company's purchase and sales
transactions. The Company expects that such review will be completed in June
2008 and expects that the audited year end financial statements will be filed
by June 30, 2008. Should the Company fail to file the audited year end
financial statements by June 30, 2008, the Canadian Securities Regulators may
impose a cease trade order on all trading of the Company's shares until the
financial statements are filed. Also, the Company's interim financial
statements for the first quarter period ended March 31, 2008 are expected to
be filed after the audited year end financial statement are filed and
therefore, such interim financial statements will not be filed by May 30,
2008.
    Further, as a consequence of the delay in filing the Company's audited
financial statements, the Company has obtained from its trade finance lender,
Maple Trade Finance Inc., consent to extend the filing of the Company's
audited financial statements until June 30, 2008. The Company also maintains a
line of trade credit finance with HSBC, which has temporarily suspended new
advances. HSBC has confirmed to the Company that new advances will resume once
the audited financial statements are filed.

    About CY Oriental Holdings Ltd.

    CY Oriental is a Canadian incorporated, China-based manufacturer and
value-added supplier of apparel and fashion products to leading international
brands and retailers, including department stores. CY Oriental owns and
operates a manufacturing facility in Shanghai, China and a newly constructed
facility in the city of Tengzhou, China. The Company's ready-made products
include a broad range of high-quality garments, including woven casual wear,
woven formal wear, casual jeanswear and sports outerwear. More information may
be found online by visiting www.cyoriental.com.

    FORWARD LOOKING INFORMATION

    Certain information in this news release is forward-looking within the
meaning of certain securities laws, and is subject to important risks,
uncertainties and assumptions. This forward-looking information includes
information with respect to CY Oriental's expectations relating to the timing
for the filing of required audited financial statements. The forward-looking
information in this news release describes CY Oriental's expectations as of
the date of this news release. The results or events anticipated or predicted
in such forward-looking information may differ materially from actual results
or events. Material factors which could cause actual results or events to
differ materially from a conclusion in such forward-looking information
include further unanticipated delays in completing the financial statements.
There is no assurance that HSBC would not declare a default under its lending
facility. There is no assurance that Maple Trade Finance Inc. will consent to
further extensions and if such additional consent is not granted, Maple Trade
Finance could declare a default under its lending facility. When relying on CY
Oriental's forward-looking information to make decisions, investors and others
should carefully consider the foregoing factors and other uncertainties and
potential events. CY Oriental cautions that the foregoing list of material
factors is not exhaustive and is subject to change.

    THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS
THE EXPECTATIONS OF CY ORIENTAL AS OF THE DATE OF THIS NEWS RELEASE AND,
ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. WHILE CY ORIENTAL MAY ELECT
TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.





For further information:

For further information: Clarence Kwong, Chief Financial Officer, CY
Oriental Holdings Ltd., Tel: (604) 247-0868, Email: ckwong@cyoholdings.com;
Trevor Heisler, Investor Relations, The Equicom Group, Tel: (416) 815-0700 ext
270, Email: theisler@equicomgroup.com

Organization Profile

CY ORIENTAL HOLDINGS LTD.

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