China Redstone Provides Corporate Update

CHONGQING, China, Jan. 26, 2011 /PRNewswire/ -- China Redstone Group, Inc. (OTC Bulletin Board: CGPI) ("China Redstone" or the "Company"), the largest private provider of cemetery products and services in Chongqing, China, today provided an update on its cemetery operations and growth plans.

Cemetery Operations

China Redstone, through its operating subsidiary Chongqing Foguang Tourism Development Co. Ltd. ("Foguang"), is licensed to develop and operate cemeteries in Chongqing, China. In August 2006, the name of the cemetery project was changed from Changshou Longqiao Cemetery to Chongqing Guiyuan ("Guiyuan"). The Company applied for and received approval for the name change on August 22, 2006. Below is a summary of the current cemetery license:

Similar to licenses issued to other private cemetery operators in Chongqing, this license permits the Company to develop and operate cemeteries for as long as it has available land and is in compliance with all applicable rules and regulations issued by the Chongqing Civil Administration Bureau. The Company pays approximately $26,500 per year for the rights to develop and operate cemeteries on 164 acres of land. (Link to copy of local government policy: https://cgpi.box.net/shared/ttfak2x913; See "Exhibit II –Local Government Policy".)

The Company's operations and cemeteries are located in Chongqing, China (Link to maps: https://cgpi.box.net/shared/ttfak2x913: See "Exhibit III - Map of Guiyuan II"). Through a series of approvals from May 2003 to August 2005, the Company acquired land use rights covering approximately 667,391 square meters, or the equivalent of approximately 164 acres of land. The key components of the Guiyuan cemetery can be found below:

(Link to land use permits: https://cgpi.box.net/shared/ttfak2x913; See "Exhibit IV - Land Use Permits".)

In addition, the Chongqing municipal government has committed to enable Foguang to secure the land use rights to approximately 1,194,804 square meters, or the equivalent of 295 acres of land and includes the Longqiao Lake (357,220 sq meters or 88 acres), which portions of Guiyuan II overlook. However, as of the date of this press release, Foguang has yet to officially receive such land use rights. Foguang has the option but is not obligated to apply for such rights in the future.

This information and the associated exhibits are available on periodic reports filed with the Securities and Exchange Commission ("SEC").

Conference Call

Management will host a conference call to discuss recent operational results and to detail its expansion plans on Friday, January 28 at 11 a.m. ET. Participants can join the call or webcast through the following means: Call 1-877-941-1427 when calling within the United States or 1-480-629-9664 when calling internationally (passcode 4405495).

The call will include a Q&A session. Please submit your questions by Thursday 5:00pmET in order for them to be addressed to the following email: [email protected].  

This conference call will be broadcasted live over the Internet and can be accessed by all interested parties with this link: http://viavid.net/dce.aspx?sid=000080D3, or by visiting http://www.viavid.net, where the webcast will be available through February 11, 2011. A playback will be available through February 11, 2011. To participate in the call, please call 1-877-870-5176 within the United States or 1-480-629-9659 when calling internationally (passcode 4405495).

Investors Day

The Company will also host an Investors Day for current and prospective investors and analysts that will include site visits to the Company's cemetery operations located in Chongqing, China.

For additional information on the Investors Day, including travel arrangements, please contact Debra Juhl at 949-259-4993 or email her at [email protected]. If you are interested in attending Investors Day, please make a reservation with Debra Juhl prior to February 18, 2011.  

China Redstone Group, Inc.

China Redstone Group, Inc. is a cemetery developer and provider of cemetery products and services in Chongqing, China, through its contractually controlled affiliate Chongqing Foguang Tourism Development (Group) Co., Ltd ("Foguang"). Founded in 2002, Foguang provides a complete range of funeral merchandise and services, including cemetery property, both at the time of need and on a preneed basis. Its cemeteries are highly regarded in terms of a number of factors such as tradition, reputation, physical size, capacity of business, available supply, name recognition, aesthetics and potential for development or expansion.   

Safe Harbor Statement

Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company's business and financial results is included in the Company's periodic reports, available via the SEC.

SOURCE China Redstone Group, Inc.