PHI GROUP INC. Represents Asean Pulp and Paper Corporation to Acquire Majority Interest in a $US 180 Million Vietnamese Pulp Company

LOS ANGELES, CA and HO CHI MINH CITY, VIETNAM--(Marketwire - July 7, 2009) - PHI GROUP INC (OTCBB: PHIE) (FRANKFURT: PR7), a company engaged in mergers and acquisitions, real estate development, mining, and investing in special situations, today announced that the Company has signed an agreement on behalf of Asean Pulp and Paper Corporation Limited, a United Kingdom corporation, to acquire a majority interest in Phuong Nam Pulp Company, a subsidiary of Tracodi that manages Phuong Nam Pulp Mill located in Long An Province, 20 kilometers south of Ho Chi Minh City, Vietnam.

According to the agreement, Asean Pulp and Paper Corporation will contribute a minimum of $15 million in equity and a portion in debt financing to Phuong Nam Pulp Company and will hold a minimum of 51% stake in this company, subject to the final approval of the Prime Minister or the highest jurisdiction in Vietnam overseeing Tracodi and Phuong Nam Pulp Mill.

Phuong Nam Pulp Mill's total investment is approximately $US 180 million, of which over $US 132 million has come from Societe General, France, Petro Vietnam Finance Corporation, Bank of Investment and Development of Vietnam, and Vietcom Bank. Phuong Nam expects to generate over $US 100 million in revenue per year when running in full capacity.

Asean Pulp and Paper Corporation will serve as a holding company to acquire and manage pulp and paper businesses in Southeast Asian. The Company is in the process of listing its ordinary stock on the Frankfurt Stock Exchange.

Henry Fahman, Chairman and CEO of PHI GROUP INC, stated: "We are excited to assist Tracodi in this recapitalization process and look forward to greatly enhancing the value of Phuong Nam Pulp Company, Asean Pulp and Paper Corporation, and all other stakeholders."

Mr. Phan Thanh Nam, Chairman and General Director of Tracodi, commented: "Since Vietnam has continued to rely on imports to meet about 40% of the demand for paper products, we believe Phuong Nam will greatly benefit from this trend."

About PHI GROUP INC.

PHI GROUP focuses on M&A and consulting services, real estate development, mining and investing in special situations. The Company assists companies to go public and raise capital, develops "Pointe 91," a luxury resort and premium residential community in Chu Lai, central Vietnam,(www.philandranch.com), and engages in mining in Southeast Asia (www.phimining.com). Main URL: www.phiglobal.com.

About Asean Pulp and Paper Corporation

Asean Pulp and Paper Corporation Limited, a United Kingdom corporation, Company No. 6924352, ISIN:GB00B554JS23, serves as holding company to acquire and manage pulp and paper business opportunities in Southeast Asia. Web site: www.aseanpaper.com

About Phuong Nam Pulp Mill

Phuong Nam Pulp Mill, a wholly-owned division of Transport and Communication Development and Investment Company Limited (TRACODI), is a manufacturer of high-quality bleached pulp from kenaf and other softwood plants with PR-CAPMP (Pre-Conditioning Alkaline Peroxide Mechanical Pulping) technology to be firstly used in Vietnam and Southeast Asian region as well from Andritz -- a global leading supplier of paper and pulp processing technology (http://www.andritz.com). Web site: www.phuongnampaper.com.

Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Contact Information: Contact: Frank Pham Tel: 714-843-5461 Email: