Nature Flooring

completed

China Flooring Holding Co., Ltd. (or the company or Nature) is one of the largest flooring manufacturers in China. The company, which was established in late 2007 based on the restructuring of its fully owned onshore wood flooring business in China, is aimed to become a world class flooring manufacturer through following expansions: - investment in three new plants in Guangdong province, Shanghai area and North East of China; - investment in a plantation/MDF/Flooring integrated project located in Jiangxi province of Central China; - investment in sales channel expansion. The company is planning an IPO on the Hong Kong stock exchange in late of 2009.The total project cost is about $120 mln which will be financed by: $70 million new equity from Morgan Stanley Asian Fund ($50 million) and IFC ($20 million), $20 million long term debt from IFC and $20 million from local banks and the internal cash flow. Further details of the project are provided in the Summary of Project Information (SPI).