31st May 2007 08:30
Asian Citrus Holdings Ltd31 May 2007 For immediate release 31 May 2007 Asian Citrus Holdings Limited ("Asian Citrus" or "the Group") Signing of agreement with the Dao County Government for the development of the Hunan Plantation Asian Citrus, the largest orange plantation owner and operator in China, hasentered into an agreement with the Dao County Government for the development ofthe Group's third plantation in China. In order to secure further supplies of oranges to help meet the expectedincrease in demand, the Group identified Dao County in Hunan province as asuitable site for the development of a third orange plantation and undertook afeasibility study. The Group has reached agreement with the Dao CountyGovernment over the terms of a proposed lease over 35 sq. km of land (the "HunanPlantation") and has been granted the right to seek approval from landowners fora proposed lease. The term of the proposed lease is 50 years commencing 8 June 2007. A rent ofRMB60 per annum will be payable for each 0.0007 sq. km (approximate) of landleased; a total of RMB 3,150,000 per annum (approximately £200,000). In theregion of 2.4 million of orange trees will be planted in the Hunan Plantation by2010 and the current estimated cost of the development is approximately £35million. Tony Tong, Chairman and CEO, commented; "Hunan province is one of the best areasin China for growing oranges and we are excited by the opportunity to establisha sizeable plantation in this area which will significantly enhance the Group'sgrowth prospects." "The proposed development of the Hunan Plantation represents a milestone forAsian Citrus as we will be able to strengthen substantially our own supply ofhigh quality oranges in the future to fulfil the increasing demand for orangesin the PRC market." About Asian Citrus Holdings Limited Asian Citrus Holdings Limited is the largest orange plantation owner andoperator in China and has two plantations in the Hepu county of the GuangxiZhuang Autonomous Region and the Xinfeng county of the Jiangxi province of China. Its primary goal is to sell quality oranges at an affordable price and in sodoing, strengthen its position as a leading, mechanised and industrialisedorange grower and distributor in China. For Further Information Contact: Terry Garrett/ John MoriartyWeber Shandwick Financial 0207 067 0700 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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