Completion of Financing Allows Company to Accelerate Execution of its Retail Strategy

SHANGHAI, China, Feb. 4 /PRNewswire-FirstCall/ -- China Shoe Holdings Inc. (OTC Bulletin Board: CHSH), announced today that it has completed a US $550K private placement of its restricted common stock. On January 30 2008, the Company completed its first round of private equity financing since going public (commonly referred to as a 'PIPE' transaction), and obtained investment funds from YU Guorui in the aggregate sum of US $550,000 for the purchase of 4,230,769 shares of the Company's restricted common stock. This represents a purchase price of $0.13 per share.

China Shoe management is pleased to point out that the PIPE financing terms negotiated are fairly priced, and are a simple stock purchase agreement with no convertible features, warrants, stock options or any type of preferred securitization. All common stock sold in this financing will bear a restrictive legend reflecting the need for a Securities Act registration or an exemption such as Rule 144, for resale. Because there is no convertible security being issued, the Company will not be subject to any 'death spiral' or other dilutive terms in this straight-forward restricted stock purchase agreement

The completion of financing will accelerate the execution of China Shoe's retail strategy and the Company now targets to have, in full operation, up to twenty self-owned stores and numerous licensed stores promoting China Shoe's own brand of Kangies footwear by July 2008.

'This PIPE financing allows the company to invest additional capital to fuel the growth of our retail strategy while maintaining the strong growth on the manufacturing side', said Gu XianZhong, Chairman and CEO of China Shoe Holdings. 'Additionally, we are very pleased to have YU Guorui as our investor as she has had extensive experience in the retail business as well as established business networks in the region, which are definitely tremendous strategic assets for the company.'

About China Shoe Holdings, Inc.

Based in Shanghai, China, China Shoe manufactures, designs and sells private label and its own branded footwear throughout China and in overseas markets, principally Japan. China Shoe has its own manufacturing facilities located in China. China Shoe has built a diversified customer base throughout China and overseas.

Safe Harbor Statement

This release may contain forward-looking statements. These forward- looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. Readers should not place undue reliance on any such forward-looking statements that are based solely on information known as of the date of this release. China Shoe Holdings, Inc. disclaims any obligation to update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based or that may affect the likelihood that actual results will differ from those contained in the forward-looking statement.

SOURCE China Shoe Holdings, Inc.