China Flooring Holding Gets Equity Financing

Beijing, China, June 10, 2008--China Flooring Holding Co. received $100 million in funding from Morgan Stanley and the International Finance Corp and promptly set its sights on going public in Hong Kong.

Red-hot growth in China's real estate sector, driven by rapid urbanization, has boosted demand for engineered and laminate flooring in recent years, making the sector a magnet for foreign capital.

The IFC, an arm of the World Bank that lends to the private sector, provided half of the funding for China Flooring, comprising $20 million in equity and $30 million in long-term debt.

The money will fund the development of plantation forests in Jiangxi province to provide raw materials for China Flooring, which sells its products under the "Nature" label.

"We wish to implement a global strategy for the brand," Se Hok Pan, the firm's chairman.

"Only global shareholders can help to create a global brand."

The Guangdong-based company hopes the investment will pave the way for an initial public offering.