8 June 2012 MEDIA RELEASE

KINGFORM TO LIST ON ASX TODAY

Kingform Health Hometextile Group Limited (ASX: KFG) Kingform will list today on the ASX at 11:00 am (AEST). The Initial Public Offering (IPO) recently closed after successfully reaching the minimum subscription. The total number of shares on issue will be 78,320,170 shares at $0.20 each. On listing, Kingform will have a market capitalisation of over $15.66 million. The lead Manager to the IPO is Melbourne based investment advisory and securities firm, AFS Capital Securities Ltd. The Chinese Financial Adviser is Shanghai based 5G Capital Management. Kingform is the designer, developer, manufacturer and distributor of silk textile products, targeting a high-end market. The products include high quality of silk quilts, blankets, pillows and quilt covers. The Companys management team has extensive experience in the home textile and silk exporting industry, with the Executive Director and CEO, Mr Jin Xikang, being a veteran in the home textile industry with over twenty years of experience. The vast majority of the home textile companies in China remain focused on low-cost, lowend products. Brand awareness is weak, market strategies are not well developed and after-sale service is limited. By contrast, Kingform's strategy is to further build on its brand recognition and focus on the premium end of the market. It is the management's view that the Company is well placed to take advantage of the growing home textiles market in China and around the globe. Kingform believes that there is a unique opportunity to be the first mover of this fragmented industry. The Company is the patent holder of a turned hand-free manufacturing process that assists to produce a more refined feeling in the final silk product. Kingform targets the high-end of the market globally with 81% of the Companys revenue last financial year coming from exports, of which one quarter of the sales were from Australia. The average revenue generated in the past three year is $4,790,000. In commenting on this significant milestone for Kingform, Executive Director and CEO, Mr Jin Xikang, said: Kingform is delighted to be listing on the ASX today. The Kingform brand is well-established and recognised in China and the Company can now enter into an exciting phase of its development as it is well-positioned to take advantage of the growing home textiles market opportunities in China, Australia and overseas. Our objective is to build on our established brand and reputation, and become a leading provider of premium silk home textile products. We aim to expand our distribution channels through opening new "experience" stores in major cities in China, developing new online marketing and sale platforms, and also increasing exports to other developed countries around the world including Australia. We will continue to focus on developing new fabrics and styles and in addition to targeting sales growth we are also looking to invest additional capital to establish a sericulture farm to ensure supply of quality raw materials to the Company in the future.

About Kingform Health Hometextile Group Ltd

Based in a region with a rich tradition of silk production, Kingform Health Hometextile Group Ltd (ASX: KFG) is the ultimate holding company of Zhejiang Kangbao Household Textiles Co., Ltd, an operating company located in Tongxiang City, Zhejiang province in China. Kangbao operates a manufacturing plant in Tongxiang City, Zhejiang province, in the heart of silkworm cocoon cultivation in China. Kingform is the owner of the only "turned hand-free" silk manufacturing process in China, ensuring that the quilt fabric will not become hardened after being used for several years and users will not need to have the quilt turned by hand which often requires professional service. The Company's operations extend to the design, development, manufacturing and distribution of a large range of household textile products including quilts, cushions, bed set products, quilted products, blankets, and other textile gift products. Kingform now exports nearly 81% of its products to retailers and distributors around the world, including Australia, Korea and European countries.

The Board of Directors: Tradition, Experience and Strength

Jin Xikang, Executive Director and Chief Executive Officer Mr Jin has more than twenty years' experience in the textile industry. He has significant experience with textile materials, home textile technology and the home textile industry. He is the founder of Zhejiang Kangbao Hometextile Co. Ltd and is the president of Kangbao. He is a member of the China Hometextile Association, the China Textile Association, and a member of Tongxiang People's Congress. He also previously received the Outstanding Private Entrepreneur award in China. He is the patent inventor of "turned hand-free" silk manufacturing method, which assists in producing a more refined feel in the final silk product. Yang Xun, Independent Director Yang Xun's has over 20 years' business experience, including roles as Sales Executive at Vinetex & Co Pty Ltd, an indent agent in Australia which represents Chinese textile exporters, Finance Manager at Provincial Clothing Pty Ltd which is an importer and wholesaler of men's clothing to retail stores. He is currently the Owner and Director of Advancetex Agencies which is a sourcing agent on behalf of a number of importing companies in the area of clothing, bed linen and towels, home ware, stationery, furniture and related products and a Majority Shareholder and Director of Madison Skye Pty Ltd which is an importer and wholesaler of menswear and work wear products. The company deals with a number of major discount department stores (eg. Big W, Aldi) as well as menswear chain stores (eg. Man to Man, Lowes Manhattan). Paul Desmond Nolan, Independent Director Paul Desmond Nolan brings with him extensive business experience in the textile and retail industries as former Buying Consultant for The Reject Shop and Owner and Director of Geelong Home Textiles Pty Ltd. Thomas Rowe, Company Secretary Thomas Rowe is a Corporate and Commercial Lawyer with a specialty in listed company secretarial practice. Mr Rowe holds a BA LLB (Hons) from the University of Adelaide and is an Associate of the Chartered Institute of Secretaries and a Fellow of FINSIA. He is the current Principal of Company Matters Pty Ltd, a specialist provider of legal, governance and company secretarial services. Previously, he held the position of Legal Counsel and Company Secretary at CSR Ltd. For more information, please visit: www.kingform.com.au For further information please contact: Rod North, Managing Director, Bourse Communications Pty Ltd; T: (03) 9510 8309; M: 0408 670 706; E: rod@boursecommunications.com.au