Fuwei Comments on Sharp Rise in Main Raw Material PET Price

BEIJING, Nov. 16, 2010 /PRNewswire-Asia/ -- Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL), a manufacturer and distributor of high-quality plastic films, today announced that the price of PET (polyethylene glycol terephthalate), the main raw material for BOPET films manufactured by its wholly owned subsidiary Shandong Fuwei Films Co., Ltd. ("Shandong Fuwei"), is experiencing a sharp rise and if the increase is not fully borne by its clients in the retail prices of its products, this will have a negative impact on its operating income.

The company predicts that the lustrous PET price in November will increase by 25-30% compared to that in October and 40-45% higher than that in September.

Mr. He Xiaoan, CEO of Fuwei Films, said, "We are closely monitoring the sharp rise in PET raw material prices and we will take appropriate steps to handle the situation. If the increase can not be fully borne by FFHL clients in their products' retail prices, this will have a negative impact on operating income. We anticipate that PET prices could return to lower levels in the near future."

In the first nine months, the raw materials costs amounted to 75% of the total costs.

About Fuwei Films

Fuwei Films conducts its business through its wholly owned subsidiary Shandong Fuwei Films Co., Ltd. ("Shandong Fuwei") Shandong Fuwei develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei's BOPET film is widely used to package food, medicine, cosmetics, tobacco and alcohol, as well as in the imaging, electronics, and magnetic products industries.

Safe Harbor

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks.  Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the U. S. Securities and Exchange Commission some of which are among other things, competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in China; uncertainty as to future profitability and our ability to obtain adequate financing for our planned capital expenditure requirements; uncertainty as to our ability to continuously develop new BOPET film products and keep up with changes in BOPET film technology; risks associated with possible defects and errors in our products; uncertainty as to our ability to protect and enforce our intellectual property rights; uncertainty as to our ability to attract and retain qualified executives and personnel; and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in view of the volatility in the prices of petroleum products in recent years.  The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release. Actual results of our operations may differ materially from information contained in the forward-looking statements as a result of the risk factors.