FOAM Foamasters

RNS Number:3176M
FoaMasters International Limited
23 January 2008



For Immediate Release                                            23 January 2008


                        FoaMasters International Limited
                                        
                                Trading update

                                        
FoaMasters International Limited ("FoaMasters" or the "Company") (AIM: FOAM), a
leading Asia-based manufacturer and producer of high-quality polyurethane
flexible foam and finished products, is pleased to announce a trading and
operational update, ahead of the release of its maiden Preliminary Results for
the year ended 31 December 2007 in April 2008.


Trading Statement

The Board is pleased to report that it expects the results for the year ended 31
December 2007 to be in line with its expectations.

Introduction of EnviroMaster(TM) series of products

EnviroMaster(TM) is FoaMasters' new series of environmentally friendly products.

In November 2007, the Company commissioned its first recycled foam powder
production facility in Heshan, China, with an annual capacity of 854 tonnes. The
use of EnviroMaster(TM) recycled powder in the manufacturing of FoaMasters' foam
products will make them environmentally friendly and potentially improve margins
across the Group's product range. By the end of 2007, the majority of the
Group's facilities had been adjusted to allow for the use of the 
EnviroMaster (TM) recycled powder.

Following Admission to AIM in December 2007, the Company launched its
EnviroMaster(TM) product range and they have been well received by a number of
major customers including True Seating Concept, one of the largest office chair
distributors in North America and Primo, a bedding distributor in Canada and
America.

FoaMasters anticipates that it will increase its capacity to produce the
EnviroMaster(TM) recycled powder through additional facilities within the new
plant in Zhejiang, China, in the second half of 2008.

New foam production facility

In December 2007 FoaMasters commissioned a new production plant in Zhejiang
province, China, which has a capacity of up to 9,000 tonnes per annum. The
facility is the ninth plant in the FoaMasters Group, giving a total annual
capacity of over 66,000 tonnes.


Market Development

In recent months the Company has been increasingly focused on developing its
domestic market presence with a number of initiatives to improve its
distribution within China and the rest of Asia. The Company has increased its
S'fonia own brand marketing functions within Asia, along with an increase in the
number of products in the S'fonia range.


2008 Outlook

During 2008 FoaMasters plans to open another manufacturing plant to further its
planned production expansion in China to cater for the increasing domestic
demand for its products. The Company is also assessing options to expand its
presence within Vietnam, through its joint venture partner, Yue Yuen Holdings.


Mr. Jack Cheong, CEO of FoaMasters, commented:

"We are pleased that 2007's financial performance was in line with our
expectations. Following admission to AIM in December the Company is continuing
to build its production capacity through new plant expansion and focusing the
development of its marketing function in China to take advantage of the growing
domestic demand. We look forward to the year ahead with confidence."



For further information please contact:

FoaMasters International Limited                                  +852 2887 7361

Jack Cheong, Chief Executive Officer
Richard Cheong, Deputy Chief Executive Officer
Teh Kim Seng, Non-executive Chairman


Hanson Westhouse Limited                                        +44 20 7601 6100

Tim Metcalfe
Anita Ghanekar

Buchanan Communications                                         +44 20 7466 5000
                                                                          
Ben Willey                                                  benw@buchanan.uk.com
Suzanne Brocks



Notes to Editors:

FoaMasters, a leading Asia-based manufacturer and producer of high-quality
polyurethane flexible foam and finished products, was founded in 1964 by the
Cheong family and was admitted to trading on AIM in December 2007.

The Company has built up a significant presence in Asia, with 9 production
facilities in China and Vietnam serving many internally recognised brands in the
USA and Europe including Wal-Mart, Aprica, LA-Z-BOY, Nike, Littlewoods, Land of
Leather, Primo, JC Penny, IKEA, Staples, Office Depot, Office Max, Steinhoff
Furniture, SpringAir, Toy R US, Target and Bed Bath and Beyond. FoaMasters
produces a wide range of high quality flexible polyurethane foams including
flame retardant, memory, high resilience, injection moulded and environmentally
friendly foams for use in a variety of industries including bedding, footwear
and furniture.


In 2006 the Company established its own brand label 'S'fonia'.


FoaMasters has numerous accreditations including SATRA and the International
Standards Organisation ISO 9001 and ISO 14001 certifications. In addition, the
Group's products have been accredited the stringent Fire Retardant Standard
BS5852 (UK) and CAL TB 117 (US), which is advantageous to the Group's marketing
in Europe and the USA.

The Company has developed a range of environmentally friendly flexible
polyurethane foam products including CFC free foam and memory foam for energy
absorbent applications and the bedding industry. Recent innovations include the
production of micronised PU powder which is made through the recycling of foam
by employing technology licensed from Mobius Technologies Inc. in the US. The
Group aims to produce a series of 'green' foam products in 2008 utilizing this
technology and eventually the technology will be used in all the Group's
products. The Directors believe that the ability to recycle foam which will be
mainly supplied by its own production waste could reduce production costs and
open up further sales opportunities to more environmentally conscious markets
including the Europe and the USA. The Group also intends to commence production
of latex foam, sourced from organic raw materials, and is currently increasing
production of rebonded scrap foam for use as carpet underlay. For more
information on FoaMasters, please visit www.foamasters.com.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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