China Shengda Packaging Group Announces Appointment of Marcum Bernstein & Pinchuk as New Independent Auditor

HANGZHOU, China, April 28, 2011 /PRNewswire-Asia-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("China Shengda Packaging" or the "Company"), a leading Chinese paper packaging manufacturer, today announced that on April 28, 2011, the Company engaged Marcum Bernstein & Pinchuk LLP ("MarcumBP") as its independent registered public accounting firm.  

As the Company previously disclosed in its 8-K filing dated April 22, 2011, its former independent registered public accounting firm, Bernstein & Pinchuk LLP ("B&P"), entered into a joint venture agreement with Marcum LLP and formed MarcumBP in a transaction pursuant to which B&P merged its China operations into MarcumBP and certain of the professional staff of B&P joined MarcumBP as employees of MarcumBP (the "Merger").  Accordingly, and solely as a result of the Merger, B&P effectively resigned as the Company's independent registered public accounting firm on April 18, 2011, and MarcumBP became the Company's independent registered public accounting firm on April 28, 2011. The engagement of MarcumBP was approved by the Company's Board of Directors on April 28, 2011.

"We are pleased to announce the engagement of Marcum Bernstein & Pinchuk, one of the leading PCAOB-registered audit firms with significant, on-the-ground resources in China," stated Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging.  "Marcum is one of the largest independent public accounting and advisory services firms in the United States and Bernstein & Pinchuk is one of the largest middle-market, PCAOB-registered auditors in China.  As a result of the merger, we will now have access to the capabilities and credibility that Marcum's leading SEC practice brings plus a great depth of localized SEC expertise, integrity and resources through more than 75 highly qualified, U.S. GAAP and SEC trained professionals in China."

B&P's reports on the Company's consolidated financial statements for the years ended December 31, 2009 and 2010, did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.  Since B&P's engagement as the Company's independent registered public accounting firm on May24, 2010, through April 18, 2011, the date of B&P's resignation, there have been no disagreements on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of B&P, would have caused B&P to make reference thereto in connection with its reports on the financial statements for such periods.

About Marcum Bernstein & Pinchuk LLP

Marcum Bernstein & Pinchuk, a PCAOB-registered firm, provides a full range of audit and assurance, tax and transaction advisory services for clients in a variety of industries throughout the world. With offices in New York, Beijing, Hong Kong, Guangzhou, and Hangzhou, MarcumBP provides the expertise, cultural understanding and support needed to efficiently serve and advise our clients. MarcumBP currently provides services to over 30 clients in the China market. For more information please visit http://www.marcumbp.com.

About Marcum LLP

Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation. Ranked within the top 15 firms by Inside Public Accounting and Accounting Today, Marcum offers the resources of more than 1,100 professionals, including more than 150 partners, in 23 offices throughout New York, New Jersey, Massachusetts, Connecticut, Pennsylvania, California, Florida, Grand Cayman, China and Hong Kong. The Firm's presence runs deep with full service offices strategically located in major business markets. Marcum is a member of the Marcum Group, the gateway to a group of organizations that provide a variety of professional services including accounting and advisory, technology solutions, recruiting, and wealth management. These organizations include Marcum LLP; MarcumStonefield, a division of Marcum LLP; Marcum Technology LLC ; MarcumBuchanan Associates LLC; Marcum Search LLC; Marcum Financial Services LLC; Marcum Cronus Partners LLC; and Marcum Bernstein and Pinchuk LLP.

About China Shengda Packaging Group Inc.

China Shengda Packaging Group Inc. is a leading paper packaging company in China. It is principally engaged in the design, manufacturing and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths. It also manufactures corrugated paperboards, which are used for the production of its flexo-printed and color-printed cartons. The company provides paper packaging solutions to a wide variety of industries, including food, beverage, cigarette, household appliance, consumer electronics, pharmaceuticals, chemicals, machinery and other consumer and industrial sectors in China. For more information, visit http://www.cnpti.com.

Safe Harbor Statements

This press release may contain forward-looking statements. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to access capital for expansion and continued investment in R&D, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in profit margins of principal product and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

SOURCE China Shengda Packaging Group Inc.