<B>Chinese Company Inks Deal to Increase Production</B>

DF China Technology Inc. signed an agreement with Vida, a leading specialty Taiwanese marketer of away-from-home paper products, to contract-pack Hand Towel Rolls and Jumbo Roll Tissue.

Away-from-home paper products, which include Jumbo Roll Tissue, Hand Towel Rolls, ``N'' multifold towels and interfolding toilet tissue, represent an expanded product line for Dransfield China Paper Corp., a wholly owned subsidiary of DFCT. The company produces its own hygienic tissue paper products under the brand name, D&F, for the Hong Kong, Macau and mainland Chinese markets.

When completed, DCPC's two paper mills will produce approximately 65 metric tons per day of tissue paper at substantially lower cost than either the average U.S. or local paper mill. They will be the first environmentally friendly paper mills in China using a technologically advanced enzymatic process to produce deinked pulp. The completed mills will make DCPC a fully vertically-integrated paper company engaged in the production and sale of recycled pulp and jumbo paper rolls, as well as finished tissue paper products distributed under the company's own brand name, D&F.