China Shengda Packaging Group Inc. Prices $32.6 Million Public Offering and Announces Listing on NASDAQ

HANGZHOU, China, Dec. 10, 2010 /PRNewswire-Asia/ -- China Shengda Packaging Group Inc. (Nasdaq: CPGI; the "Company"), a leading Chinese paper packaging manufacturer, today announced the pricing of an underwritten public offering of 8,145,631 shares of its common stock at a public offering price of $4.00 per share. Of these shares, 8,000,000 are being sold by the Company and 145,631 are being sold by a selling stockholder.  The offering is expected to close on or about December 15, 2010, subject to customary closing conditions. The Company has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of common stock to cover over-allotments. The Company's shares are expected to begin trading on Friday, December 10, 2010 on The Nasdaq Global Market under the symbol "CPGI."

The net proceeds to the Company from the offering are expected to be approximately $28.9 million, after deducting underwriting discounts and commissions and other estimated offering expenses without giving effect to any exercise of the underwriters' over-allotment option. The Company will not receive any proceeds from the sale of shares by the selling stockholder. The Company intends to use the net proceeds from this offering to pay for part of the acquisition cost for a paper manufacturing company, which the Company expects to cost approximately $40 to $45 million. Any remaining balance may be used (i) together with cash on hand, cash from operations and/or funds available under the Company's lines of credit, to acquire one or more paper packaging companies or (ii) for upgrading existing equipment, purchasing new equipment, working capital and general corporate purposes.

Oppenheimer & Co. is acting as the sole book-running manager, William Blair & Company is acting as the co-lead manager and Brean Murray, Carret & Co. is acting as co-manager for the offering. A registration statement on Form S-1 relating to these shares has been declared effective by the Securities and Exchange Commission. The offering of these shares will be made only by means of a prospectus, copies of which may be obtained by visiting EDGAR on the SEC's Website at http://www.sec.gov and from Oppenheimer & Co. Inc., Syndicate Prospectus Department at 300 Madison Ave., 4th Floor New York, New York 10017, or by telephone at 212-667-8563 or email to EquityProspectus@opco.com.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.

About China Shengda Packaging Group Inc.

China Shengda Packaging Group Inc. is a leading paper packaging company in China. It is principally engaged in the design, manufacturing and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths. It also manufactures corrugated paperboards, which are used for the production of its flexo-printed and color-printed cartons. The company provides paper packaging solutions to a wide variety of industries, including food, beverage, cigarette, household appliance, consumer electronics, pharmaceuticals, chemicals, machinery and other consumer and industrial sectors in China. For more information, visit http://www.cnpti.com.

Safe Harbor Statements

This press release may contain forward-looking statements. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to access capital for expansion, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in principal product profits and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.