Ever-Glory Completes Acquisition of Nanjing Catch-Luck Garments Co., Ltd.

NANJING, China, Sept. 6 /Xinhua-PRNewswire-FirstCall/ -- Ever-Glory International Group, Inc. ("Ever-Glory"), a leading apparel manufacturer in the People's Republic of China ("PRC"), today announced that it has completed the acquisition of Nanjing Catch-Luck Garments Co., Ltd. ("Catch-Luck").

The transaction was funded by a combination of $0.6 million in cash and $9.4 million in common stock. Upon completion of this transaction, Catch-Luck became a wholly-owned subsidiary of Ever-Glory.

"The acquisition of Catch-Luck increases our existing production capacity, expands our product lines and provides an additional source of revenue and income," said Mr. Yihua Kang, Chairman and Chief Executive Officer of Ever- Glory. "We expect to achieve greater economies of scale in the areas of production, administration and purchasing as we integrate the operations of our two companies."

Catch-Luck is primarily engaged in the manufacturing and sale of garments to China, Europe, Japan and the United States. Founded in 1995, Catch-Luck has more than 500 non-union employees with annual production capacity of 1.2 million garment pieces. It currently operates one factory spanning 6,000 square meters in the Nanjing Jiangning Economic and Technological Development Zone.

During the first half of 2007, Catch-Luck generated revenues of $9.7 million and net income of $1.2 million. Approximately 78% of revenues came from customers in Europe, 9% from customers in the U.S., 8% from customers in China and 4% from customers in Japan.

About Nanjing Catch-luck Garments Co., Ltd.

Nanjing Catch-luck Garments Co., Ltd. (the "Company") is a Chinese limited liability company. The Company is principally engaged in the manufacturing and sale of casual wear, sportswear, jackets, trousers and shorts for high to middle brands and international chain stores. It has a staff of more than 500 employees with an annual production capacity of 1.2 million garment pieces.

About Ever-Glory International Group, Inc.

Ever-Glory International Group is a U.S. publicly traded company engaged in international garment manufacturing for well-known middle- to high-grade casual, outer, and sportswear brands. The Company's U.S. headquarters is based in Los Angeles, CA, although Ever-Glory also owns three full subsidiary companies, Goldenway Nanjing Garments Co. Ltd., Nanjing New-Tailun Garments Co, Ltd and Nanjing Catch-Luck Garments Co., Ltd., Ever-Glory has strategic business partners in countries including China, Europe and the U.S. The Company cooperates with well-respected garment retailer chains such as Itochu, Shinko, Debenhams, Next, C&A, Itoyokado and others in handling high- and middle-grade casual wear and sportswear. The Company entered into production and sales cooperation agreements with a number of internationally famous brands such as Matalan, Eddie Bauer, Best-Seller, BB Dakota and others. Ever- Glory employs more than 2,000 people. At present, the market distribution is segmented as 15 % in Japan, 54% in Europe, 27% in United States and 3% in China. For more information about Ever-Glory International Group, please visit: http://www.everglorygroup.com .

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to the Company's ability to accurately complete product orders, coordinate product design with its customers, ability to expand and grow its distribution channels, political and economic factors in the People's Republic of China, the company's ability to find attractive acquisition candidates, dependence on a limited number of larger customers and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                        -- FINANCIAL TABLE FOLLOWS --

            EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
                       PRO FORMA CONSOLIDATED CONDENSED
                           STATEMENT OF OPERATIONS
                    FOR THE SIX MONTHS ENDED JUNE 30, 2007

                            EGLY      Catch-Luck     Pro Forma    Pro Forma
                        (Historical) (Historical)   Adjustments   Combined

    NET SALES           $21,006,831  $  9,656,704     140,101    $30,523,434

    COST OF SALES       (17,880,051)   (8,152,343)   (140,101)   (25,892,293)
    GROSS PROFIT          3,126,780     1,504,361                  4,631,141

    OPERATING EXPENSES    1,651,008       380,865                  2,031,873

    INCOME FROM
     OPERATIONS           1,475,772     1,123,496                  2,599,268

    OTHER INCOME
     (EXPENSES)            (253,028)          802                   (252,226)

    INCOME BEFORE
     INCOME TAX EXPENSE   1,222,744     1,124,298                  2,347,042

    INCOME TAX EXPENSE      (82,323)           --                    (82,323)

    NET INCOME            1,140,421     1,124,298                  2,264,719

    OTHER COMPREHENSIVE
     INCOME                 362,080        88,626                    450,706

    COMPREHENSIVE
     INCOME             $ 1,502,501  $  1,212,924                $ 2,715,425

    Net income per
     share - basic      $      0.03  $       0.15                $      0.05

    Net income per
     share - diluted    $      0.01  $       0.15                $      0.02

    Weighted average
     number of shares
     outstanding during
     the period - basic  40,805,091     7,391,305                 48,196,396

    Weighted average
     number of shares
     outstanding during
     the period -
     diluted            100,720,079     7,391,305                108,111,384

    For more information, please contact:

    Ever-Glory International Group, Inc.
     Mr. Devin Jean, Corporate Secretary
     Tel:   +86-25-5209-6801
     Email: jinqiu@ever-glory.com

    CCG Elite Investor Relations
     Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com