China Fishery acquires new fishmeal plant in Peru

CHINA FISHERY ACQUIRES NEW FISHMEAL PLANT IN CENTRAL-SOUTH PERU

•New plant in Pisco, south of Lima, will strategically enhance the geographical spread of China Fishery’s fishmeal plants in Peru

•Brings number of plants to eight, and total Peruvian Anchovy processing capacity to 655 tonnes per hour, an increase of 110 tonnes per hourSingapore,

14 April 2008 – Singapore Exchange Mainboard-listed industrial fishing company China Fishery Group Limited (“China Fishery” or the “Group”) (SGX: B0Z.SI) announced today that it has acquired its eighth fishmeal plant in Peru.For a purchase consideration of US$19.9 million (the “Consideration”), the Group will acquire the entire issued share capital of a Peruvian company Epesca Pisco S.A.C., which owns one fishmeal plant and three fishmeal depots built on land totalling 80,431 m2 in area (the “Acquisition”).

With a Peruvian Anchovy processing capacity of 110 tonnes per hour, the new plant is China Fishery’s single largest steam-dried processing facility in Peru. Steam-dried fishmeal is considered a product superior to standard flame-dried fishmeal, and commands a higher market price. With this Acquisition, the Group’s total Peruvian Anchovy processing capacity is increased to 655 tonnes per hour, further reinforcing its market position as one of the largest processors in Peru.

The plant is located in Pisco, approximately 231 kilometres south of Peru’s capital, Lima. With most of the Group’s existing plants concentrated in Central and Northern Peru, the new plant will strategically enhance the geographical spread of China Fishery’s fishmeal plants.

Under Peru’s current fishing system, increasing plant density along the coast is critical to improving operating efficiencies, as it allows fishing vessels harvesting in the nearby fishing ground to shorten transit and unloading times of raw material. Thus, the Group will be able to reduce turnaround time in its Peruvian Anchovy fishing operations, and also increase its sourcing capabilities from third parties. This, in turn, will optimise utilisation of the Group’s fishmeal processing capacities.

China Fishery, which enjoys a strong cash inflow from its operations, intends to fund the Acquisition from internal resources. The Group has reached an agreement with the seller for payment to be made in seven (7) quarterly instalments from June 2008 to December 2009.

Speaking on the Acquisition, Group Managing Director Mr Ng Joo Siang said, “Our latest acquisition has been instrumental in helping us fill a void in the geographical spread of our fishmeal plants. With that accomplished, we shall focus on improving operational efficiencies and realising the fishing and processing capacities that we have acquired. Given the right opportunities, we will still be keen to acquire more fishing vessels to further enhance our efficiencies.” This Acquisition is not expected to bring about any material impact to the Group’s performance in the financial year ending 31 December 2008.