[Immediate Release]

Merry Garden develops timber villa hotel in Fujian
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Hong Kong, 13 July 2015 - A fast-growing wooden leisure products enterprise in China, Merry Garden Holdings Limited ("Merry Garden" or the "Company", and its subsidiaries the "Group", Stock Code: 1237.HK) is pleased to announce that parties including King Wood (Hong Kong) Holding Limited (a wholly-owned subsidiary of the Company) and Liancheng County Zhailong Tourism Investment and Operations Co., Ltd. (on behalf of Liancheng County State owned assets, Fujian Province, the PRC) have entered into a cooperation framework agreement (the "Agreement") , for development and operation of a timber villa hotel project in Guanzhai Mountain (A National 4As scenic area) in Liancheng County, Fujian Province.

Pursuant to the Agreement, the parties agree to leverage the tourism resources to facilitate the stable development of tourism in Liancheng County, so as to boost the brand awareness of "Refreshing Fujian". The parties will collaborate to develop Liancheng County into a well-established town with a nationally well-known touristy destination which features sight-seeing, leisure and healthcare.

The parties will establish a joint venture company with a total investment amount of RMB200 million in Liancheng County. The total investment amount includes the RMB100 million registered capital of the joint venture company dedicated for the project. The Group will hold 40% equity interest of of the joint venture company and will be mainly responsible for the construction works.

Liancheng County is located at Longyan Municipal, Fujian Province, the PRC. It is a famous town of Hakka culture in China, as well as the key development area of the Fujian western coast economic zone. The Liancheng County has been awarded ''Outstanding Tourism County in China'', ''Town of Hot Spring in China'' and ''The Famous Town for Chinese Hakka Delicacies''. The Liancheng County possess rich tourism resources, with three national 4As tourist attractions, of which the Guanzhai Mountain Scenic Area was named the National Geological Park, National Natural Heritage and National Scenic Area.

Mr. Wu Zheyan, the Chairman and Chief Executive Officer of Merry Garden said, 'The parties of the cooperation enjoy outstanding statuses in their respect aspect. Liancheng County being a renounced Hakka-culture city enjoys an prviledged reputation nationwide. Merry Garden with its advanced wood processing technologies, provide one-stop services for home building materials, leisure furniture and tourist facilities. The project allows the Company to more closely capture the trend driven by the flourishing development of the Chinese tourism, and solidify its leading positions in both of the leisure tourist facility developer and wood processing industry in China. We shall continue to implement Merry Garden's motto - "to align with the trend of the Chinese tourism and leisure market and to capture the opportunity arisen from the recovery of the United States", and strive to enlarge its growth catalyst, with a view towards greater returns for the shareholders."

About Merry Garden Holdings Limited (Stock code:1237.HK)
Merry Garden Holdings Limited specialises in wood processing technology. Holding over 90 registered patents, the Company has a leading position in the innovation of wood modification technology. Via advanced wood processing technology, the Company provide one-stop services on home building materials, leisure furniture and tourism facilities to customers in over 35 countries and regions. The customer base of the Company covers large home improvement chains, tourism industry developers, builders and end consumers.

Mission of the Company: To build ecological and environmentally-friendly leisure lifestyle for the customers.

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Issued by Financial PR (HK) Limited
For and on behalf of Merry Garden Holdings Limited

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