Jade Art Group Announces Initiation of Coverage by Murphy Analytics Research Group

  
    
  
  
    
      Jade Art Group Inc. (OTCBB: JADA), a seller and distributor of raw jade 
      sourced from the SheTai Jade mine in China, today announced that Murphy 
      Analytics, a fee-based equity research group, has initiated coverage on 
      Jade Art Group with an "Outperform" rating.
    
    
      In the report entitled, "Gold Has a Value; Jade is Invaluable," Murphy 
      Analytics discussed such investor highlights as Jade Art Group’s 
      exclusive distribution right with XiKai Mining, which has China’s 
      largest high quality jade reserves. The report also reviewed industry 
      drivers, including the increasing demand for jade throughout China.
    
    
      According to analyst Patrick J. Murphy, CFA, and author of the report, 
      much of the Chinese economy’s increasing 
      demand for jade is driven by the rapidly growing affluence of the middle 
      and upper classes whose rising incomes make “treasures 
      such as jade not only desirable but obtainable by an ever-expanding 
      market.”
    
    
      These are among the factors substantiating the Company’s 
      2008 guidance of $61- $65 million in revenues, according to the report.
    
    
      “With favorable production and product cost 
      agreements in place, JADA has created a highly profitable distribution 
      business with the potential to generate as much as $40 million in net 
      income in calendar year 2008, or approximately $0.50 EPS,” 
      the report stated. “At a price of $4.75 on 
      June 25, 2008 and a price of $3.00 on July 2, 2008 Murphy Analytics sees 
      the potential for significant price appreciation for JADA and is 
      initiating coverage on JADA with an Outperform rating.”
    
    
      “We are very pleased with the quality of 
      Murphy Analytics research coverage,” 
      commented Mr. Hua-Cai Song, CEO of Jade Art Group. “The 
      report provides serious investors with an in-depth understanding of our 
      Company and the jade industry in China.”
    
    
      The report is available for review free of charge at http://www.murphyanalytics.com/uploads/JADA_Initiation. 
      Jade Art Group has engaged Murphy Analytics to provide research coverage 
      under the compensation terms described below.
    
    
      About Jade Art Group Inc.
    
    
      Jade Art Group Inc., through its wholly owned subsidiary, Jiangxi SheTai 
      Jade Industrial Co., Ltd., sells and distributes raw jade sourced from 
      the SheTai Jade mine throughout China, with uses ranging from decorative 
      construction material to high-end jewelry. This mine’s 
      operating capacity is estimated to reach 40,000 tons and it contains one 
      of the largest jade reserves in China. The mine is owned by XiKai 
      Mining, with which Jade Art Group signed an agreement to acquire 
      exclusive distribution rights to sell 90% of the SheTai Jade produced 
      from the mine for the next 50 years. According to a survey report issued 
      by the Inner Mongolia Geological Institution, the mine has proven and 
      probable reserves of approximately 6 million tons, or approximately $16 
      billion worth of jade at current market rates of $2,750 per ton. Several 
      national jade experts have noted the high quality of SheTai Jade as 
      compared to the other existing varieties of Chinese jade.
    
    
      For more information, please visit: www.jadeartgroupinc.com
    
    
      About Murphy Analytics
    
    
      Murphy Analytics provides company-sponsored research coverage on 
      small-cap stocks in a broad range of sectors. Murphy Analytics was paid 
      $9,000 by Jade Art Group in advance of the creation of this report. For 
      additional information, please visit www.murphyanalytics.com. 
      The views expressed in the report on Jade Art Group accurately reflect 
      the analyst's personal views. Neither the analyst's compensation nor the 
      compensation received by Murphy Analytics is in any way related to the 
      specific ratings or views contained in this research report.
    
    
      FORWARD-LOOKING STATEMENTS: This document includes forward-looking 
      statements. Forward-looking statements include, but are not limited to, 
      statements concerning estimates of, and increases in, production, 
      projected volume of customer orders, performance by customers under 
      existing and future agreements, cash flows and values, statements 
      relating to the continued advancement of Jade Art Group’s 
      projects and other statements which are not historical facts. When used 
      in this document, the words such as "could," "plan," "estimate," 
      "expect," "intend," "may," and similar expressions are forward-looking 
      statements. Although Jade Art Group believes that its expectations 
      reflected in these forward-looking statements are reasonable, such 
      statements involve risks and uncertainties and no assurance can be given 
      that actual results will be consistent with these forward-looking 
      statements. Important factors that could cause actual results to differ 
      from these forward-looking statements include, but are not limited to, 
      those set forth in our reports filed with the Securities and Exchange 
      Commission, together with the risks discussed in our press releases and 
      other communications to shareholders issued by us from time to time, 
      such as our ability to raise capital as and when required, the 
      availability of raw products and other supplies, competition, the costs 
      of goods, government regulations, and political and economic factors in 
      the People's Republic of China in which our subsidiaries operate.