Pacrim International Capital Inc. announces MOU for investment in Wah Sang
Paper Products by CCB International Capital Management

HONG KONG, July 16 /CNW/ - PACRIM INTERNATIONAL CAPITAL INC. (PCN: TSX) ("Pacrim") holds 46% of the outstanding common shares of Pacrim International Capital Holdings Inc., ("PICH") a holding company with business interests in the People's Republic of China consisting of an indirect 75.07% interest in Wah Sang Paper Products (Shenzhen) Co. Ltd. ("Wah Sang"), a corrugated packaging company. Pacrim is pleased to announce that Wah Sang has entered into a non-binding Memorandum of Understanding ("MOU") with CCB International Capital Management (Tianjin) Co., Ltd. ("CCBICM"), a subsidiary indirectly wholly-owned by China Construction Bank, for CCBICM or an affiliate to acquire a 10% equity interest in Wah Sang by the purchase of treasury shares. The purchase price is to be eight times Wah Sang's audited net profit for the year ended December 31, 2009 to a maximum price of RMB28,440,000, being Cdn$4,365,540 based on the Bank of Canada noon exchange rate on July 15, 2010.

CCBICM is to provide consultation services to Wah Sang for mergers and acquisitions and may choose to make co-investments with Wah Sang.

The MOU contemplates that the definitive agreement for the investment by CCBICM will provide CCBICM with rights of redemption in certain situations including Wah Sang not completing an initial public offering within 24 months of the share issuance to CCBICM or Wah Sang failing to achieve prescribed net profit levels. The MOU also contemplates CCBICM being provided with a guarantee with respect to prescribed profit increases for Wah Sang to 2012, the guarantee to be supported by a pledge of certain Wah Sang shares by a subsidiary of PICH.

The investment by CCBICM is subject to completion by CCBICM of due diligence and the parties negotiating and entering into a definitive agreement. It is contemplated the investment will be completed by September 30, 2010 but there can be assurance that the parties will successfully conclude the investment.

The corrugated packaging operations of Wah Sang are located in Shenzhen, in the Pearl River Delta of southern China which houses one of the world's largest concentrations of manufacturing of consumer electronics, office and telecommunication equipment. Wah Sang sells its high-end packaging products almost exclusively to multinational corporations which export from China. Wah Sang has annual production capacity of 63,000 tonnes of containerboard, 50,000 tonnes of flexo containers and 20,000 tonnes of off-set colour containers. The bulk of the containerboard produced is used internally for further processing into flexo containers or off-set colour containers. A description of Wah Sang is contained in Pacrim's Annual Information Form of September 28, 2009.

About Pacrim International Capital Inc.

Pacrim International Capital Inc. ("Pacrim") is an investment holding company with its investments focused mostly in southern China. Pacrim's business strategy is to concentrate on the corrugated paper products and packaging industry in the Pearl River Delta area of southern China, the heart of the "World's Factory". The company's head office is in Hong Kong with offices in Shenzhen, Guangzhou and Beijing. An intended strategy of Pacrim is to acquire selected small or medium size enterprises in China and to merge them for better operational efficiency. Like many industries in a developing economy, China's corrugation sector is comprised of mostly SMEs, some of which are weakened by the recent international financial crises, and may therefore be available to be taken over.

Caution concerning forward-looking statements

Statements made in this news release, other than those concerning historical financial information, should be considered forward-looking and subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend" or "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: risks associated with China including state ownership, government sector intervention, foreign investment, repatriation of profit and currency conversion, tax, the developing legal system, protection of intellectual property rights, shareholder rights and enforcement of judgments, permits and business licenses, appropriation, political stability considerations, the central planned economy, fluctuations in foreign exchange rates and Chinese accounting and auditing standards; risks in business and operations including risks associated with expansion, future capital requirements, dependence on key personnel, environmental regulation, competition, risk in purchasing abroad, risk of change in the price of raw materials, product price volatility, insurance and operating plant risk; customer risk including risk of a single market and risk depending on major customers; technical risk including risk in the advance of technology and risk of relying on technology abroad; financial risk including foreign exchange risk, credit risk, liquidity risk, cash flow and fair value interest rate risk; investment strategy risk; and short term management transition risk.

We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of Pacrim's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings. Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time-to-time by us or on our behalf; such statements speak only as of the date made.

%SEDAR: 00003175E

For further information: Guy Lam, Chief Executive Officer, Pacrim International Capital Inc., Tel. [phone]