Under terms of this agreement, the Italian-based distributor will exclusively market and distribute China Linen's range of linen fabrics in a well-known area in Italy. The long-term contract, effective in March 2010 and extending through to 2013, is expected to increase the annual sales volume for linen fabric from this company by approximately 20%, or 400,000 meters.

In 2008, Italy's apparel market was worth an estimated USD18.1 billion, and the market is expected to grow at a five-year compound annual growth rate of 4%. China is the world's largest exporter of apparel and textile products globally. According to China's General Administration of Customs, the country's total exports of textile products and clothing for 2008 amounted to USD185.2 billion.

Gao Ren, the chairman and president of China Linen, stated that the renewed agreement also demonstrates China Linen's continued commitment to building long-term and stable relationships with their clients and solidifying their position in the Italian market. He added that in 2009, the company exported millions of dollars worth of linen fabric to Italy, and they expected to continue to capitalize on opportunities in this market.