Trading Update

RNS Number:3770T
Natsun Holdings Limited
30 April 2008


For immediate release                                              30 APRIL 2008


                            Natsun Holdings Limited

                          ("Natsun" or the "Company")

                                 TRADING UPDATE

The Board of Natsun, (AIM:NTS), today announces a trading update ahead of the
announcement of its audited results for the financial year ended 31 December
2007 which are expected to be released during May 2008.

The Company successfully achieved its IPO on AIM in December 2007 raising
approximately #5.3 million. Despite the disruption of the IPO process, the Board
is extremely pleased to announce that the financial performance of the Company
for 2007 was in line with their expectations at the time of Admission.

Since the year end the Company has continued to strengthen its position as one
of China's largest worsted wool fabric manufacturers. Revenues to date have been
marginally behind management expectations at the time of IPO whilst gross
margins have been materially impacted by historically high wool prices and low
margin sales. However, the Company does expect to see an improvement in both its
revenue generation and gross margin from June 2008 as increased selling prices
are passed to customers and large orders in both Fabrics and Garments are
received.

As outlined at the time of the IPO, the Company intends to expand its capacity
in both its Worsted Fabrics and Garments divisions. This expansion is to be
principally driven by the establishment of a new fabric factory. The Company
expects the new fabric factory to be fully operational in May 2008. The fabric
factory is being funded from the Company's existing cash resources and an
interest bearing credit line from Nanshan Group.

The Board intends to provide further information on the current trading of the
Company at the time of releasing the year end results in May 2008.

For more information please contact:

EVOLUTION SECURITIES CHINA LIMITED                  Tel No: [phone]
(Financial adviser and broker)
Barry Saint
Jerry Zheng
Esther Lee

EVOLUTION SECURITIES LIMITED                        Tel No: [phone]
(Nominated adviser)
Bobbie Hilliam

BUCHANAN COMMUNICATIONS                             Tel No: [phone]
Lisa Baderoon
Mary-Jane Johnson
Robin Haddrill


Notes to Editors:

About Natsun

Natsun Holdings Limited and its subsidiaries ("Natsun Group" or "Group") is a
profitable and integrated worsted fabric and garment producer based in Shandong
Province, the People's Republic of China ("PRC").

The Group produces a variety of worsted fabrics under the "Nanshan" brand for
the domestic and overseas markets. In addition, Natsun Holdings has a 75 per
cent. interest in a joint venture ("JV") with Berwin Holdings Limited ("Berwin
Holdings"), a leading garments group based in the United Kingdom. The JV
Company, Yantai Nanshan Berwin Garments Co., Limited ("Nanshan Berwin") supplies
suits on an original equipment manufacturer ("OEM") basis to Berwin Holdings for
sale to a range of UK and continental European brands such as Moss Bros, Next
and others.

The Group intends to become a leading international worsted fabric and garment
producer with its independent suit business and own brand names.

Global trend

In 2000, the University of Cambridge's Institute of Manufacturing reported that
global clothing spending amounted to approximately US$1 trillion, with Western
Europe and North America each accounting for around a third of the total, and
Asia accounting for one quarter. Although some Western countries, notably Italy,
are still net exporters of clothing, many Western countries' clothing production
has been outsourced to lower cost countries, including China.

China alone now accounts for more than 25 per cent. of global clothing exports,
up from 9 per cent. in 1990. Chinese textile and clothing exports increased
further following the lifting of quotas on Chinese exports by the General
Agreement on Tariffs and Trade in 2005.

Clothing now accounts for more than 20 per cent of China's total exports. The
planned elimination of Chinese clothing export quotas to the United States in
2008 is widely expected to be accompanied by increased Chinese exports there.

Industry backdrop: Taken from Natsun's Admission Document, Dec. 2007




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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