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Ever-Glory Reports Record Sales and Earnings for First Quarter Ended March 31, 2006 Posting Sharp Revenue Gain of 272 Percent Over Same Period Last Year

Add: 2006   Update: 2009/03/22

LOS ANGELES, June 26, 2006 (PRIMEZONE) -- Ever-Glory International Group (OTC BB:EGLY.OB - News) today announced results for its fiscal quarter which ended March 31, 2006.

Revenues for the quarter ended March 31, 2006 were $5,229,520, an increase of 272% from $1,407,196 for the same quarter in 2005. The dramatic increase in revenues was primarily attributable to an overall increase in sales to customers in the EU, the U.S., Japan and Russia. As of March 31, 2006, sales to customers in the EU increased by $2,195,902 or 268%, sales to customers in the U.S. increased by approximately $1,180,615 or 720% , sales to customers in Japan increased by approximately $262,347 or 239% and sales to customers in Russia increased by $144,271 as compared to 2005.

``In the past year, we have made significant progress with both our performance and our quality. With customers like Eddie Bauer, Abercrombie & Fitch and Wal-Mart, Ever-Glory is proving that it is a premier manufacturer in the garment industry,'' stated Mr. Edward Kang, President and CEO of Ever-Glory. ``Going forward, the Ever-Glory business will continue to focus on providing the best quality for garment retailers, while maintaining steady and material top and bottom line growth.''

Cost of sales for the quarter ended March 31, 2006 was $4,320,640, an increase of $3,179,595 from $1,141,045 for the quarter ended March 31, 2005. As a percentage of revenues, cost of sales increased to approximately 83% for the three months ended March 31, 2006 from approximately 81% for the quarter ended March 31, 2005. Consequently, gross margin as a percentage of revenues decreased to approximately 17% for the three months ended March 31, 2006 from approximately 19% for the three months ended March 31, 2005. EBIT (Earnings before income tax) for the three months ended March 31, 2006 was $457,442, an increase of $402,017 from $55,425 for the three months ended March 31, 2005.

``First quarter results reflect the benefits of our diversified product offering. The improvement in gross margin is attributable to our higher-margin product mix and economies of purchasing, both of which have resulted from the Company's growth strategy. In the coming months, we will be focusing our efforts on internal growth and further integrating past acquisitions with the goal of realizing additional operating synergies,'' commented Mr. Edward Kang, President and CEO of Ever-Glory.

As of March 31, 2006, the Company had cash and cash equivalents of $1,287,239, other current assets of $2,717,526 and current liabilities of $4,156,494. To date, the Company has financed its operations primarily from operations and cash flow from operations is expected to continue to be the Company's primary source of funds to finance its short-term cash needs. Net cash used in investing activities was approximately $569,881 as of March 31, 2006, compared with $174,419 in the same quarter of 2005. The increase was primarily attributable to construction costs of approximately $489,860 associated with our new office building and factory.

Ever-Glory's continual success in attracting the business of top-tier clothing brands is a sign that their business practices and production quality are well respected. Top-level quality control, attention to detail, accountability, affordability, and a consistent attitude of always striving for improvement are among the reasons why Ever-Glory is building a solid reputation in the industry as the obvious ``go to'' maker for many middle to high-end clothing brands in markets throughout the world.

About Ever-Glory International Group

Ever-Glory International Group (OTC BB:EGLY.OB - News) is a U.S. publicly-traded company engaged in international garment manufacturing for well-known middle to high-grade casual, outer, and sportswear brands. The company's U.S. headquarters is based in Los Angeles, CA, although Ever-Glory also owns a full subsidiary company, Nanjing Goldenway Garments Co. Ltd. located in China. Ever-Glory has strategic business partners in countries including China, Europe and the U.S. The Company cooperates with well-respected garment retailer chains such as Itochu, Abercrombie & Fitch, Shinko, Debenhams, Next, OTTO, C&A, I.Y., etc. in handling high and middle grade casual-wear and sportswear. The company entered into production and sale cooperation agreements with a number of internationally famous brands such as Matalan, EB, Best-Seller, BB Dakota, Fat Face, Lindex, and Just Jeans, etc. The company employs about 700 people. At present, the market distribution is segmented as 35% in Japan, 50% in Europe and the 15% in United States.

For more information about Ever-Glory International Group, please visit: http://www.everglorygroup.com.

This press release contains certain ``forward-looking statements,'' as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors are detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities.

Contact:

Ever-Glory International Group

Ms. Sarah Liu

(626) 839.9116

info@everglorygroup.com

Source: Ever-Glory International Group Inc.