Zungui Haixi Completes Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2009) -

NOT FOR DISTRIBUTION TO U.S NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Zungui Haixi Corporation (TSX VENTURE:ZUN), a China-based manufacturer of sportswear and casual footwear, is pleased to announce the successful closing today of its initial public offering. 11,500,000 common shares were sold for gross proceeds of $37,375,000 by a syndicate of underwriters led by CIBC World Markets Inc. and including Canaccord Financial Ltd., GMP Securities L.P. and Research Capital Corporation.

The underwriters have an over-allotment option exercisable for a period of 30 days from closing to purchase up to an additional 1,725,000 common shares at the offering price of $3.25 per share.

Zungui Haixi intends to use the net proceeds of the offering to expand its retail and distribution network in China, increase production capacity, invest in marketing and promotional activities and for working capital and general corporate purposes.

"We are gratified with the support by investors of this successful initial public offering," said Mr. Jixu Cai, Chief Executive Officer. "We are pleased to be listed as a public company on the TSX Venture Exchange."

About Zungui Haixi

Zungui Haixi Corporation, through its wholly owned subsidiaries, is engaged in the manufacture and sale of athletic footwear, apparel and accessories, and also casual footwear, in the People's Republic of China. Both product lines are marketed under the ZUNGUI brand. Zungui Haixi distributes its products to consumers throughout China through an extensive network of retail outlets which exclusively carry ZUNGUI branded products. There are 61,500,000 common shares issued and outstanding.

Caution Regarding Forward-Looking Statements

This press release contains statements that may constitute forward-looking statements, which may include financial and other projections, as well as statements regarding future plans, objectives or economic performance. Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied and accordingly, investors should not place undue reliance on any such forward-looking statements. Factors that could cause results to vary include those expressed in the company's filings with Canadian securities regulatory authorities. All information presented herein should be read in conjunction with such filings.