Tai-ming Ou, Chairman and CEO of the Company, ”We also made significant progress towards the build-out of our new 100,000 tons, or 30 million gallons per annum, biodiesel plant in Jiangyin and as of today have completed the approval process and received our business license, with construction work now expected to start in the fourth quarter of 2007 and production start-up expected during the fourth quarter of 2008. In first half of 2007 China Clean Energy gained status as a Wholly Owned Foreign Enterprise (”WOFE”) in China, and its operating subsidiary, Fujian Zhongde, applied for and was granted approval for income tax exemptions for 2007 followed by 50% exemption or at 12% income tax rate in the subsequent three-year period. The combination of strong transportation fuel demand and tightening supply has forced the Chinese government to mandate an 8% increase in retail fossil diesel prices from approximately $736 to $795 per ton effective on November 1, 2007, and as a result China Clean Energy has increased its wholesale biodiesel price from $633 to $694 per ton, which the Company expects will positively impact margins and accelerate its growth in the quarters ahead. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s ability to raise additional capital to finance the Company’s activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the Company; the ability of the Company to expand its production capacity; the period of time for which its current liquidity will enable the Company to fund its operations; the Company’s ability to protect its proprietary information; general economic and business conditions; the volatility of the Company’s operating results and financial condition; the Company’s ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company’s filings with the Securities and Exchange Commission. read more

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