New Dragon Asia Corporation

Company and Strategy:

Q When was New Dragon founded?
A The company was founded in 1952 in Longkou, Shandong Province.

Q Where is New Dragon headquartered?
A New Dragon is headquartered in Shenzhen, China.

Q Who is on the New Dragon Board of Management?
A The Board of Management includes:

Q How does New Dragon differentiate itself from its competitors?
A Superior quality, nationwide distribution, a well-established brand name and a rapidly growing international business.  The company is also vertically integrated, handling all milling, processing, packaging, and distribution in-house.

Q How many employees does New Dragon have?
A New Dragon has approximately 2,000 employees.

Q Who are New Dragon’s largest competitors?
A New Dragon’s largest competitors are “Master Kang,” “President,” and “Tingyi” brand instant noodles, all of which are predominantly sold in the urban coastal markets.

Q What products does New Dragon offer?
A New Dragon offers a wide variety of products including different types of flour, packaged instant noodles, and soybean powder.  New Dragon plans to add ginger power to its product lineup in the near future.

Q What are the sizes of New Dragon Asia’s markets?
A The Chinese flour market is approximately US$40 billion and growing 10% per year. The instant noodle market is US$5 billion and growing 20% per year. The soybean market is approximately US$15 billion.

Q What is New Dragon’s export strategy?
A New Dragon exports throughout South East Asia, including Singapore, Malaysia, Korea, and Australia.  With the HACCP approval obtained in June 2006, New Dragon has commenced exporting products to Europe, with orders already placed by customers in Greece and Sweden.  Italy, France and the UK are all targets for future expansion.  Export sales are important to the company’s overall growth strategy, as they generate higher margins that domestic sales.

Q What is New Dragon’s domestic strategy?
A New Dragon has taken a “four corners” approach to develop regional penetration and sales, while limiting distribution costs.  A focus on the rural market and the strong “Long Feng” brand name allow marketing expenses to remain low. Products are also exported throughout South East Asia and to Europe.

Q What is New Dragon’s share of the noodle and flour market?
A New Dragon is the #1 flour manufacturer and the 4th largest producer of instant noodles in China.

Q What is New Dragon’s production capacity of flour, noodle and soybean products?
A New Dragon’s has a production capacity for 190,000 tons of flour, 1.5 billion packages of noodles, and 4,500 tons of soybean products per year. 

Q Does New Dragon make products for health conscious consumers?
A Yes, New Dragon produces a line of organic wheat and top grade soy powders.

Q Are there many expansion opportunities within the Chinese instant noodle market?
A The industry in China is very fragmented, with a large number of smaller brands and only a handful of leading national brands such as “Long Feng.”  We will continue to make selective acquisitions of the very best regional brands to expand out product range, while continuing to grow our signature brand.  Our recent acquisition of the Chengdu plant in Sichuan province increased our production capacity by 30%.

Q What is the breakdown of revenues?
A Instant noodles comprise approximately 30%, flour is 60% and soybean products are 10%.  By the end of 2006, soybean products should make up 15% of revenues, with noodles holding steady and flour constituting 55%.

Financials:

Q When will New Dragon publish its next set of financial results?
A Please see the Upcoming Events tab. 

Q What currency does New Dragon publish its results in?
A New Dragon publishes its results in US dollars.

Q Which accounting regulations are the financial statements of New Dragon based on?
A New Dragon publishes results following US GAAP.

Q Does New Dragon have any analyst coverage?
A New Dragon is currently being covered by Riedel Research Group (www.riedelresearch.com).

Q How can I receive a copy of New Dragon’s annual report?
A Please fill out the “information request form” on the Investor Relations section of the website.

New Dragon Stock:

Q What is New Dragon’s ticker?
A New Dragon trades on the AMEX as NWD.

Q When is the next Annual General Shareholder Meeting of New Dragon Asia?
A Please see the Upcoming Events tab.

Q How many shares are there outstanding?
A There are, as of July 21, 2006, 51 million shares outstanding.

Q What does New Dragon’s shareholder structure look like?
A The New Dragon shareholder structure.

Q What is the current market cap of New Dragon?
A $70 million.

Q Does New Dragon pay a dividend?
A No, New Dragon Asia does not currently pay a dividend.

Q Who should I contact with questions regarding NWD shares?
A Please refer questions to New Dragon’s Transfer Agent and Registrar:
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, New York 10038 USA
(800)937-5449
www.amstock.com