China Fishery 1H Result Press Release

CHINA FISHERY 1HFY2008 NET PROFIT JUMP 26% TO US$63.9 MLNUS$

. South Pacific fishing operations underway with 2 supertrawlers deployed to the vicinity

•New quota system in Peru will enhance the Group’s efficiency and performance

Singapore, 14 August 2008 – Singapore Exchange Mainboard-listed industrial fishing company China Fishery Group Limited (“China Fishery” or the “Group”) (SGX: B0Z.SI), today posted positive results for the second financial quarter (“2QFY2008”) and first half (“1HFY2008”) of the financial period ended 30 June 2008.

For 1HFY2008, China Fishery recorded a 10.4% growth in revenue of US$256.5 million on higher catch volumes and better fish prices. Higher catch volumes were achieved as a result of sustainable fishing practices within the industry, coupled with tighter regulatory government controls over the past few years, which has led to healthier fish stock.In effect, sales from the Group’s trawling operations increased 28.4% to US$203.9 million, and accounted for 79.5% of 1HFY2008 revenue, while fishmeal operations contributed the remaining 20.5%.PRC remained the largest market accounting for 52.3% of the Group’s revenue, followed by Japan and Korea at 33.9%, and Europe at 6.4%.

1HFY2008 Net Profit Jump 26% to US$63.9 mln

With higher catch volumes and better fish prices, complemented with the Group’s efforts to improve operational efficiencies despite higher oil prices and other inflationary factors, gross profit for 1HFY2008 saw 23.5% growth to US$94.8 million, while earnings before interest, tax, depreciation and amortisation (“EBITDA”) increased 28.3% to US$104.0 million, and net profit after tax grew 26.2% to US$63.9 million. In correlation, net profit margin saw improvements from 21.8% to 24.9%, while net debt-to-equity ratio improved considerably from 108.3% to 93.6%. Furthermore, basic earnings per share increased 25.0% from US6.54 cents to US8.17 cents.Another driving force behind the positive numbers was attributed to enhanced operational efficiencies, achieved through higher production volumes following the acquisition of the 8th fishmeal processing plant in Peru.

For 2QFY2008, China Fishery recorded US$137.2 million revenue, a 24.1% growth from 2QFY2007. Sales to the PRC increased 13.7%, while sales to Japan and Korea increased 27.5%, and sales to Europe increased 163.7%. With regards to gross profits, the Group reported 20.9% increase to US$41.6 million due to continuous improvements in operational efficiency despite higher oil prices and other inflationary factors. EBITDA increased 36.3% to US$48.1 million, and net profit after tax grew 16.6% to US$23.5 million.

Commenting on the effects of high oil prices on the Group’s business, Group Managing Director Mr Ng Joo Siang says, “Although oil prices have increased significantly, rising fish prices and effective fleet deployment have helped contain the increase in the fuel cost within our fishing division. The selling price for our main specie alone has seen compounded annual growth rate (“CAGR”) of 12.7% over the past 12 years, and the trend is expected to continue this year. In addition, our economies of scale and efficient fleet utilisation in the fishing division have offset the impact of rising fuel costs.”

For administrative efficiency, China Fishery has adopted a practice of not declaring an interim dividend. China Fishery would therefore be declaring a final dividend amounting to one-third of its FY2008 net profits after tax.

Outlook for FY2009

The global outlook for demand of fish continues to be positive in the light of healthy life-style and dietary choice and preference. Global demand for fishmeal is also expected to increase, supported by the rapid growth in aquaculture. The Group is well placed to meet the increase in demand as its production efficiency continues to improve with fleet upgrading and expansion.

The Group’s trawling operations are expected to continue delivering higher catch volumes with the upgrading and expansion of its fishing fleet in the South Pacific Ocean. As of July 2008, 2 supertrawlers have been deployed to the South Pacific, with additional supertrawlers to follow.As the government in Peru announced the new quota fishing system to replace the Olympic fishing system in 2009, the Group will continue to expand its presence in the region by way of additional vessel acquisitions to further increase its anticipated quota allocation and competitive edge.