Liuyang Fireworks Signs Exclusive Agreement for Distribution of 12 Products in Canada

    - Agreement Marks Entry into Canadian Market -

    TORONTO, Sept. 2 /CNW/ - Liuyang Fireworks Limited (TSX-V: FWK) (the
"Company") today announced that it has entered into an exclusive agreement to
distribute 12 of its products in Canada through a leading Canadian fireworks
distributor. The agreement marks the Company's entry to the Canadian market.
    "Our entry into the Canadian marketplace is consistent with our strategy
to grow our international export business by adding new distributor
relationships," said Miao Hu, president and chief executive officer, Liuyang
Fireworks. "The distribution of our products in Canada required that they
first pass a stringent review process with the Canadian Explosives Regulatory
Division (CERD). We look forward to working with our Canadian distributor and
to expanding our relationship through the addition of other Liuyang products."
    Liuyang plans to submit additional products for approval by CERD in the
coming months.

    About Liuyang Fireworks Limited

    Liuyang Fireworks Limited is a leading China-based manufacturer of
fireworks that are distributed domestically and in more than 20 countries in
the Americas, Europe, Australia, and Southeast Asia. The Company has more than
15 years experience in the fireworks industry and is a supplier to the world's
top five fireworks wholesalers and retailers. Liuyang's ISO9001-certified
manufacturing facilities are located in the Liuyang area of Hunan, China where
more than half of the world's fireworks are produced.

    The forward-looking information contained in this news release represents
the expectations of the Company as of the date of this news release and,
accordingly, is subject to change after such date. Readers should not place
undue importance on forward-looking information and should not rely upon this
information as of any other date. While the Company may elect to, it does not
undertake to update this information at any particular time except as required
in accordance with applicable securities legislation.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.

For further information:

For further information: Jacky Long, Chief Financial Officer, Liuyang
Fireworks Limited, Tel: (416) 613-0208 ext 206,;
Lawrence Chamberlain, Investor Relations, The Equicom Group, Tel: (416)
815-0700 ext 257, Email:

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