May 22, 2008. /Lesprom.com/. Orient Paper announced its operating results for the 1Q 2008. Net revenues for the 1Q 2008 increased 66.04% to $13.5 million compared to $8.1 million for the 1Q 2007. First quarter’s net income was $1.4 million, compared to $0.78 million for the 1Q 2007, with earnings per share increasing to $0.04 per diluted share compared to $0.02 per diluted share for the comparable period of 2007. The $5.4 million increase in net revenues during the 1Q 2008 was attributable to increased demand for our products as a result of the closure of many small paper milling companies because of heightened environmental laws and regulations. In addition to the increased demand, we launched a successful market expansion plan that increased our sales volume in the domestic market. Gross profit was $2.5 million with a gross margin of 18.36% for the three months ended March 31, 2008, compared to $1.3 million in gross profit and a gross margin of 15.61% recorded during the first quarter 2007. The favorable variances resulted from the fact that the Company experienced an increase in their sales and related pricing which was greater than the increases noted in related costs during the period. General, administrative, and research and development expenses in the quarter were $0.22 million, up $0.15 million from last year’s 1Q level, reflecting the funding of a new research venture of the Company to increase the market position in other areas. Net income in the 1Q was $1.4 million, an improvement of $0.67 million, or 85.51% from the prior year’s $0.78 million. This increase reflects the higher revenues and improved cost efficiencies. Orient Paper, a large paper milling manufacturer in China. The Company engages mainly in the production and distribution of products such as copy paper, uncoated and coated paper, digital photo paper, corrugated paper, plastic paper, kraft paper, graphic design paper, antifraud thermal security paper and other paper and packaging-related products.