Fuwei Films Announces Revised Agreement to Advance Delivery of New BOPET Production Line by Three Months

BEIJING, August 1, 2011 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films in China, today announced that on July 22, 2012, its subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Shandong Fuwei") entered into a Supplementary Agreement to the contract entered into on March 30, 2011 with Lindauer Dornier GmbH ("Lindauer Dornier GmbH"), a German equipment supplier, pursuant to which, among other things, both parties agreed to change the scheduled delivery to between March 10, 2012 to April 21, 2012, three months earlier than the original agreement.

As previously disclosed, the original contract between Shandong Fuwei and Lindauer Dornier GmbH to purchase equipment for the Company's thick film BOPET production line was entered into on January 20, 2007, as amended on February 2, 2007. However, as a result of Shandong Fuwei's inability to pay the balance of the purchase price, the contract was cancelled and the construction of the production line was suspended. After negotiation and discussion with Lindauer Dornier GmbH, on March 30, 2011, Shandong Fuwei entered into this contract with Lindauer Dornier GmbH to purchase equipment for its thick film BOPET production line in Weifang City, Shandong Province, China. The originally scheduled delivery period was between June 2 to July 14, 2012.

Additionally, in accordance with the recent meeting attended by the engineers from both parties to discuss latest products and technology developments in Lindau, Germany, this Supplementary Agreement includes some targeted adjustments regarding technical specifications and device configuration. Accordingly, the total price of this production line has been increased by EUR 400,000 to EUR 16.85 million.

"We are pleased to be able to receive the new BOPET production line three months in advance of its originally scheduled delivery time, which should allow us to be confident that we could complete all necessary installation and testing procedures regarding the project and enable it to be put into operation by the end of next year," said Mr Xiaoan He, Chairman and CEO of Fuwei Films.

About Fuwei Films

Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (Shandong) 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 which, among other things, include 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.