Asia Cork Shows Strong First Quarter Rebound; Revenue Up 302% To $3.6M; Net Income $210k Vs. ($113k)

Asia Cork Inc. (OTCBB: AKRK), a leading manufacturer of cork-based environmentally-friendly building materials for the Chinese and international building industry, said revenues for the first quarter of 2010 increased 302% to approximately $3.6 million as compared to approximately $902,504 in the first quarter of 2009. The company reported net income of approximately $210,050 as compared to a loss of ($113,541) a year earlier.

CEO Pengcheng Chen said, “We saw a strong rebound in our operations in the first quarter compared with the first quarter of 2009, where we experienced adverse market conditions for home and commercial renovations. We increased our sales of major finished goods including wood materials, floors and boards. In addition, we sold secondary raw materials amounting to $1.18 million. There were no comparable sales in the first quarter of 2009.

“With $10.9 million in net working capital, improvements in our collections of accounts receivable and positive cash flow from operations, we have sufficient resources to finance our operations for the coming year,” Pengcheng Chen said.

The company has filed its financial statements with financial notes as part of its 10-Q with the SEC, which are available for public viewing at http://www.sec.gov.

About Asia Cork Inc.

Located in Xi’an, China, Asia Cork, Inc. is a rapidly growing leader in the development, manufacturing and marketing of cork-based building materials. Cork is a ‘green’ renewable resource harvested only from the bark of the cork oak tree, thus leaving forests generally undamaged. The company’s product lines include raw cork materials, semi-finished cork and finished cork products such as cork floorboards and cork wallboards. Approximately 75% of the company’s products are sold within China and the rest are sold overseas to customers in the United States, Germany, Japan and India. The company currently capitalizes on six technological patents, to which the company has exclusive rights. The company operates in China under the Xi’an Hanxin brand. More information may be found at http://www.hxrm.com.

An investment profile on Asia Cork, Inc. may be found at http://www.hawkassociates.com/profile/akrk.cfm. For an online investor relations kit, visit http://www.hawkassociates.com or http://www.americanmicrocaps.com. For more investor-related questions, contact Frank Hawkins, Hawk Associates, at 305-451-1888, e-mail: [e-mail]. To subscribe to future releases via e-mail alert, visit http://www.hawkassociates.com/about/alert/.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.