BERWICK, MAINE – Prime Tanning Co., Inc. (“Prime”) announced today the completion of the sale of its wet blue tanning facility in St. Joseph, MO to an affiliate of National Beef Packing Company, LLC. Terms of the transaction were not disclosed. The sale transaction concludes the operational streamlining, factory consolidation, and financial restructuring undertaken by Prime since November 2007.

In addition, Prime announced the resignation of Robert Moore as CEO of Prime. Mark Kehaya, Prime’s current Chairman, will assume the role of CEO of Prime.

Prime’s Chairman and CEO Mark Kehaya commented: “Prime has successfully emerged from a difficult operational and financial restructuring that has streamlined the company, significantly reduced operating costs, decreased debt, and positioned Prime for future profitability despite an unprecedented downturn in the global economy. We are eager to get back to work and focus our efforts solely on making superior leather for our global leather customers.”

Prime’s reorganization activities in 2008 included the consolidation of three finished leather facilities into one, sale of its wet blue tanning facility, reduction of over $25 million of Senior Debt, and annual SG&A cost reductions in excess of $8.9 million.

Separately, Prime and Shanghai Richina Leather Company, Ltd. (“SRL”) have suspended by mutual consent their Management Agreement, which facilitated the sharing of certain sales and technical resources.

About Prime Tanning

Prime Tanning Company, Inc. operates the largest side-leather finishing tannery in North America, with annual capacity of over 30 million feet. Prime also maintains operations in Vietnam through a joint venture agreement with a local tannery. Prime’s manufacturing facility is BLC Silver Medal certified, and produces side-leather for the largest and best known leather brands in the world, with products that serve high quality footwear, handbag, upholstery, and specialty markets worldwide, as well as the U.S. Military. Prime employs approximately 200 people.

Prime’s Web site is www.primetanning.com.