XI'AN, China--(BUSINESS WIRE)--Asia Cork Inc. (OTCBB: AKRK.OB), a leading manufacturer of cork-based environmentally-friendly building materials for the Chinese and international building industry, announced today that revenue for the third quarter of 2008 increased 117% to approximately $8.96 million from approximately $4.13 million in the third quarter of 2007. Diluted earnings per share for the quarter were $0.04 based on net income of approximately $1.40 million. This compares with net income of approximately $436,000 or $0.01 diluted earnings per share a year ago.

Third Quarter Financial Highlights

• An increase of 117% in revenue to approximately $8.96 million compared to the third quarter of 2007, primarily due to increased sales of finished cork floorboards and wallboards

• An increase of 41% sequentially in revenue from approximately $6.37 million for the second quarter of 2008

• An increase of 94% in cost of sales. Cost of sales accounted for 65% of net revenues, as compared to 72% of net revenues a year ago

• A 177% increase in gross profit to approximately $3.15 million for the third quarter of 2008 compared to approximately $1.14 million for the comparable quarter of 2007

• An increase in gross profit percentage from 28% to 35% year-over-year, mainly due to increased sales in higher margin products

• A 147% increase in total operating expenses to approximately $1.34 million, due to increased selling expenses, freight costs and commissions associated with increased revenues

• A 220% year-over-year increase in net income to $1.40 million, and sequentially, an 83% increase from $761,675 in the second quarter of 2008

For the first nine months of 2008, revenues were approximately $17.84 million, an increase of 90% over the approximately $9.41 million of revenues for the comparable period last year. Net income for the nine-month period ended September 30, 2008 was $2.55 million, compared with $934,000 for the nine-month period ended September 30, 2007. Diluted EPS was $0.07 for the first nine months of 2008 as compared to $0.03 for the first nine months of 2007. The company has filed its financial statements with financial notes as part of its 10-Q with SEC, which are available for public viewing at http://www.sec.gov and http://hawkassociates.com.

Asia Cork CEO Pengcheng Chen said, “We were pleased with our operating performance characterized by the 117% growth in revenue and the 220% growth in net income during the quarter, which is a reflection of China's strong demand for green building products. We are continuing our efforts to expand our sales channels and to strengthen our intellectual property. Overall the organic growth of our business continues to be very healthy because of the market popularity of our current products and because of the pipeline of new brands."

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 Susan Zhou or Frank Hawkins, Hawk Associates, at 305- 451-1888, e-mail: Asia.cork@hawkassociates.com. 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.

For Asia Cork Inc.
Hawk Associates
Susan Zhou or Frank Hawkins, 305-451-1888
Asia.cork@hawkassociates.com