Prime Tanning Company and Shanghai Richina Leather Co. Announce Planned Merger

Prime Tanning Co., Inc. ("Prime") and Shanghai Richina Leather Co., Ltd ("SRL") announced today the planned merger of the two companies to form the world's largest premium leather maker, Prime Leather International ("PLI"). Prime currently operates the largest vertically integrated wet blue and side-leather finishing tanneries in North America, and sells its finished leather to footwear, handbag, upholstery, and specialty markets worldwide, and the U.S. military. SRL finishes leather at its large facility in Shanghai, which it sells to the shoe, garment, and automotive leather markets.
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BERWICK, Maine and SHANGHAI, China -- Prime Tanning Co., Inc. ("Prime") and Shanghai Richina Leather Co., Ltd ("SRL") announced today the planned merger of the two companies to form the world's largest premium leather maker, Prime Leather International ("PLI"). Prime currently operates the largest vertically integrated wet blue and side-leather finishing tanneries in North America, and sells its finished leather to footwear, handbag, upholstery, and specialty markets worldwide, and the U.S. military. SRL finishes leather at its large facility in Shanghai, which it sells to the shoe, garment, and automotive leather markets. Both companies supply the world's best brands.

The combined company will have capacity to finish over 150 million feet of leather annually. Robert Moore, current CEO of Prime, will become CEO of the new company, and the board of directors will be comprised of representatives of both companies.

The combination will be structured as a three-step process. First, the two companies will execute a management agreement that will combine on May 1, 2008 their global management, marketing, sales, and customer service teams into one entity so they can deliver significant synergies to their global customer base immediately. Second, Prime and SRL will legally combine the balance of their operations through a merger or contribution agreement as soon as possible. Third, the combined entity will seek a listing on an Asian stock exchange at the earliest possible time according to market conditions.

Prime's CEO Robert Moore commented, "The merger of Prime and SRL will be a landmark transaction combining the enormous production and technological synergies of the two companies for the benefit of our global customer base. This transaction will enable us to serve the global needs of customers by integrating our R&D and manufacturing platforms on a worldwide basis. We will maintain Prime's unsurpassed standards for product innovation, quality and environmental stewardship."

SRL's CEO Roger Wang stated, "SRL has been working closely with Prime since Prime became our principal wet blue supplier in early 2006. We have gotten to know the Prime team and value the strong synergies between us. This merger will create the undisputed global leader in premium bovine fashion leathers for the footwear and specialty markets, while significantly strengthening our capabilities in our lambskin garment and automotive leather divisions. We look forward to integrating our global sales and marketing, technical, and production teams for the benefit of our customers worldwide."

About Prime Tanning
Prime Tanning Company, Inc. operates the largest vertically integrated wet blue and side-leather finishing tanneries in North America, with annual capacities of 125 million feet and 55 million feet, respectively. Prime also maintains operations around the world, in Vietnam and India through Joint Venture agreements with local tanneries in those countries. The Company produces side-leather for the largest and best known leather brands in the world, with products that serve high quality footwear, handbag, upholstery, and specialty markets worldwide, as well as the U.S. Military. The Company operates facilities which are 1SO 9001, ISO 14001, and includes the first BLC Silver Medal certified wet blue tannery in the world. Headquartered in Berwick, Maine, Prime employs 490 people at its wet blue tannery in St. Joseph, Missouri and its two finishing operations located in Berwick and Hartland, Maine. Mike and Steve Kaplan are Co-Chairmen of the Board of Directors. The Kaplans are grandsons of Morris Kaplan, founder of the business in 1914, and the sons of Leonard D. Kaplan, who was Chairman of the Board for nearly 40 years.

Prime's Web site is www.primetanning.com/.

About Shanghai Richina Leather
Shanghai Richina Leather Co. Ltd finishes over 96 million feet of leather annually at its facility in Shanghai, China and it is a leading supplier to the bovine shoe, lambskin garment, and automotive leather markets. SRL has consistently provided quality and environmental compliance leadership in the Chinese tanning industry and it is ISO 14001 certified as well as BLC Silver Medal certified. Through its sister company, Shanghai Leather Corporation (SLC) SRL owns all of its tannery and support buildings and one of China's most advanced effluent treatment facilities. SRL is situated within the large SLC site, which is within the outer ring road of Shanghai and which offers significant additional expansion land. With minimum additional capital expenditures, SRL can comfortably increase its annual leather finishing capacity above 150 million square feet in the near term.

SRL is a wholly owned subsidiary of Richina Pacific Limited (RPL), a Bermuda based, New Zealand listed investment holding company with substantial businesses in both New Zealand and China.

RPL's website is www.richinapacific.com/.

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