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Lihua International Announces Production Capacity Expansion

Lihua International, Inc., (Nasdaq: LIWA), a leading Chinese developer, designer, manufacturer, marketer and distributor of low cost, high quality alternatives to pure copper superfine and magnet wire, today announced new production capacity expansion following the recent completion of the Company’s initial public offering of common stock.

The Company has begun production on four new proprietary high speed manufacturing lines. The new lines increase Lihua’s copper wire capacity from 1,000 metric tons per month to 1,500 metric tons per month and CCA wire capacity from 500 metric tons per month to 600 metric tons per month.

To supplement and capitalize on its well-established CCA business and proprietary cleaning technologies, at the end of the first quarter of 2009, Lihua began utilizing refined, or recycled, copper to manufacture and sell low content oxygen copper cable and copper magnet wire to its existing customer base. Lihua’s copper recycling facility operates two horizontal smelters for a current production capacity of 25,000 tons per annum.

“As CCA and recycled copper magnet wire are increasingly accepted as alternatives to pure copper wire magnet wire, we are leveraging our fine wire expertise to develop new products and processes while aggressively growing our production capacity to meet surging domestic demand,” said Jianhua Zhu, Chairman and Chief Executive Officer of Lihua. “Our highly scalable production facilities and competitive supply chain advantages allow us to steadily add capacity while maintaining healthy margins. We believe that our emphasis on technological innovation and production efficiency has contributed significantly to our leading industry position in China and will enable us to capture a growing share of an enormous market opportunity.”

Market Demand

Lihua’s proprietary copper-cleaning technology, which produces 99.96% copper purity, puts the Company in a leadership position within the world’s largest addressable market for copper consumption. China ranks as the largest copper consuming country in the world with a market share of approximately 22% of global demand. Experts have indicated that China’s four trillion RMB stimulus package should assist in sustaining the rate of copper demand through ongoing and accelerating housing and infrastructure investments.

About Lihua International, Inc.

Lihua International, through its two wholly-owned subsidiaries, Lihua Electron and Lihua Copper, is a leading value-added manufacturer of copper replacement products for China’s rapidly growing magnet and fine wire market. Lihua is one of the first vertically integrated companies in China to develop, design, manufacture, market and distribute lower cost, high quality, alternatives to pure copper magnet wire. Lihua’s products include copper-clad aluminum wire (“CCA”) and recycled scrap copper wire and are sold in China either directly to manufacturers or through distributors in the wire and cable industries and manufacturers in the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. Lihua’s corporate and manufacturing headquarters are located in the heart of China’s copper industry in Danyang, Jiangsu Province.

As of Monday, October 5, 2009, Lihua was ranked the No. 1 performing IPO to date in 2009 with a 152% increase in stock price since the beginning of trading on September 4th.

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