Asian Bamboo AG Signs Land Lease Contract

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or distribution in the United States of America.

Asian Bamboo Group, a leading producer of bamboo trees and organic
bamboo shoots in China, has signed a land lease contract comprising a
total acreage of approx. 2,100 ha of mature bamboo forest in the
Fujian province in China. The contract with a duration of 20 years as
of 1 January 2008, envisages a lump-sum lease payment of some EUR
4,400 per ha which amounts to approx. EUR 9.2 million for the whole
acreage. This contract finalises the first of five non-binding letters
of intent with improved key terms to contract more than 10,000 ha of
already mature land for additional plantations and therefore will
increase the already mature acreage of Asian Bamboo by more than 40%
versus the current status. Since the newly contracted land is already
mature it will contribute to Asian Bamboo´s revenues and earnings
immediately.

With its IPO on the Prime Standard of the Frankfurt Stock Exchange
on the 16th November, 2007, Asian Bamboo AG raised net proceeds of
approx. EUR 74 million which are intended primarily to finance the
long-term contracting of additional mature bamboo forests in China.
Due to long-term contracts including the most recent one, the company
currently has access to 14 bamboo plantations comprising a total
acreage of more than 16,700 ha in the Fujian province, one of the most
suitable and largest bamboo growing areas in China. The company
intends to increase its acreage to more than 30,000 ha by the end of
2010.

Recently, Asian Bamboo AG announced its first quarterly interim
report after the IPO on the Q3 results. Asian Bamboo Group increased
revenues by approximately 95% yoy to nearly EUR 6.4 million in the
third quarter of FY 2007 and the adjusted net profit by some 210% yoy
to around EUR 4.4 million. This growth is mainly driven by a
significant increase of bamboo tree sales which climbed to EUR 4.8
million in Q3 2007 from EUR 3.3 million in Q3 2006, an increase of
92.5%. In addition to the extension of bamboo tree sales volume, from
approx. 1.0 million units in Q3 2006 to approx. 2.6 million units in
Q3 2007, Asian Bamboo managed to achieve a rise in the bamboo tree
average selling price from EUR 1.51 in Q3 2006 to EUR 1.87 in Q3 2007.

Total revenues for the first nine months of FY 2007 were approx.
EUR 11.7 million. Compared to the first nine months of 2006 with
approx. EUR 7.7 million this is an increase of more than 50%. For the
same period the adjusted net profit increased significantly by
approximately 126% to around EUR 6.1 million (first 9 months 2006:
approx. EUR 2.7 million). Adjusted earnings per share rose from EUR
0.21 in the first nine months of FY 2006 to EUR 0.47 in the same
period of FY 2007, an increase of approx. 124% (based on 12,750,000
shares after capital increase in the course of the IPO).

Mr. Zuojun Lin, CEO of Asian Bamboo AG, comments on the new
contract: "This land lease contract marks the next step on our growth
path as announced at the time of the IPO. We have not lost time using
the IPO proceeds to contract further plantations in order to,
particularly, expand our high-margin bamboo tree business. The
negotiations on the four further plantation portfolios are going
according to plan, and we are confident to be able to successfully
close the respective contracts soon."

About Asian Bamboo AG

Asian Bamboo Group is a leading bamboo producing company in China
focusing on two product categories: bamboo trees and organically grown
bamboo shoots. Due to long-term contracts the company at this stage
has access to 14 bamboo plantations comprising a total acreage of more
than 16,700 ha in the Fujian province, one of the most important and
suitable areas for the growing of bamboo in China.

Over the last three years, the company has achieved a compound
annual growth rate (CAGR) of 79% in revenues to EUR 10.89 million in
2006 and - adjusted for changes in the fair value of biological assets
- a CAGR of 127% in net profit to EUR 3.94 million in 2006. In the
first nine months of 2007 Asian Bamboo Group generated revenues of EUR
11.7 million and an adjusted net profit of EUR 6.1 million.

Asian Bamboo Group´s registered office is located in Hamburg,
Germany. Its production facilities are located in China´s Fujian
province, one of the main areas for growing bamboo in the People´s
Republic of China. As of 30 September 2007, Asian Bamboo Group had
approximately 300 employees.

Further information on Asian Bamboo AG can be obtained at:
www.asian-bamboo.com

This document constitutes neither an offer to sell nor a
solicitation to buy securities of Asian Bamboo AG. The securities have
already been sold.

This document is not an offer of securities for sale in the United
States of America. Securities may not be offered or sold in the United
States of America absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended. The
shares in Asian Bamboo AG have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, and are not being
and will not be offered or sold in the United States of America.

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