China Clean Energy Announces First Quarter 2008 Results



FUQING, China, May 12 /Xinhua-PRNewswire-FirstCall/—China Clean
Energy Inc. (OTC Bulletin Board: CCGY) ("China Clean Energy”, “the
Company") today reported financial results for the first quarter ended on
March 31, 2008.

First Quarter 2007 Highlights
—Revenue reached $4.5 million, up 8% from the first quarter of 2007
—Gross Profit was $1 million, down 9% from the first quarter of 2007
—Operating income totaled $311,686, compared to $446,834 in the first
quarter of 2007
—Net income was $163,783, or $0.01 per share in the first quarter 2008
“The recent spike in the cost of our raw materials associated with the
rapid increase in global crude oil prices and agricultural commodity prices
in Asia and China during the quarter, combined with a stagnant wholesale
diesel price in China impacted our results for this quarter,” said Mr.
Tai-ming Ou, Chairman and CEO of the Company. “We have made the necessary
adjustments by shifting our focus away from biodiesel production and toward
the sale of higher value-added specialty chemicals, the market for which is
not regulated by the Chinese government.”

First Quarter 2008 Results

Net revenue for the first quarter 2008 was $4.47 million, an increase
of 8% over the same period in 2007. Biodiesel accounted for 12% and
specialty chemicals for 88% of total revenue. The Company shipped 770 tons
of biodiesel at an average price of $717 per ton after value added tax
(VAT), and 2,909 tons of specialty chemicals (including dimer acid,
printing inks, polyamide resins, hot melt adhesives, plant asphalt) at an
average price of RMB1,350 per ton after VAT. Exports accounted for 24% of
the Company’s specialty chemical shipments and 35% revenues.

Gross profit for the first quarter of 2008 was $1.04 million, compared
to $1.15 million during first quarter of 2007. Gross margin for the first
quarter of 2008 was 23.3%, down from 27.8% in the first quarter of 2007.
The decrease in gross profit and gross margin was mainly due to an increase
in the cost of raw materials, as the prices for waste cooking oil, cotton
seed waste and rape seed waste feedstock, the principal raw materials of
the Company’s biodiesel and specialty chemical products, increased to over
$500 per ton in February 2008, compared to an average cost of $320 per ton
in the first quarter of 2007.

Operating expenses were $731,550 for the first quarter of 2008, as
compared to $701,583 during the first quarter of 2007, representing a 4.3%
increase.

The Company’s higher operating cost structure resulted in lower
operating profits, which were $311,686, with margins of 7.0%, in the first
quarter of 2008, as compared to operating profits and margins of $446,834
and 10.8%, respectively, in the first quarter of 2007.

Net income for the first quarter of 2008 was $163,783, or $0.01 per
basic and diluted share, as compared to net income of $400,706, or $0.02
per basic and diluted share, during the first quarter of 2007.

Private Placement

The Company completed a $15 million private placement of common stock
and warrants in January 2008, that resulted in net proceeds of $13,627,403
of net proceeds to us. The proceeds will be used principally to build a
refinery capable of producing 100,000 tons of biodiesel per year, or
100,000 tons specialty chemicals per year, or a combination of biodiesel
and specialty chemicals at Jiangyin Industrial Park, Fuqing City, Fujian
Province of China.

Financial Condition

At March 31, 2008, China Clean Energy had $6.2 million in total cash
and approximately $9.3 million in working capital, and $0.2 million in
debt. Cash flows from operations for the three months ended March 31, 2008
totaled $1.9 million, up from $236,301 during the three months ended March
31, 2007. This increase in cash flow from operations was attributable to
$1.03 million of accounts receivable reductions, $440,595 in inventory
reductions and our amortization of $253,618 of stock-based compensation
expenses. Capital expenditures totaled $9.7 for the three months ended
March 31, 2008 and shareholders’ equity was $30.0 million, as compared to
$14.8 million at the end of 2007.

Subsequent Events

On April 9, 2008, the Company engaged Moore Stephens Wurth Frazer and
Torbet, LLP to serve as the Company’s independent auditor. Moore Stephens
Wurth Frazer and Torbet, LLP is an international independent auditing firm
serving clients in many industries and geographic locations, and through
its association with Moore Stephens International Limited in London has an
international accounting network with over 621 offices in more than 95
countries.

About China Clean Energy:

China Clean Energy, through its wholly-owned subsidiary, Fujian Zhongde
Technology Co., Ltd., is engaged in the development, manufacturing, and
distribution of specialty chemical products made from renewable resources.

Safe Harbor Statement

This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. 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 operate as a public company; 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. These forward-looking statements
involve known and unknown risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the Company and
the industry. The Company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events or
circumstances, or to changes in its expectations, except as may be required
by law. Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, they cannot assure you
that their expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the anticipated
results.

China Clean Energy Appoints Interim Chief Financial Officer and Updates Business Outlook



FUQING CITY, China, Aug. 4 /Xinhua-PRNewswire-FirstCall/—China Clean
Energy Inc. (OTC Bulletin Board: CCGY) ("China Clean Energy”, “the
Company"), today announced the appointment of Shannon Yan as its interim
Chief Financial Officer effective, August 01, 2008. Ms. Yan replaces Mr.
Gary Zhao, who resigned effective July 31, 2008 to pursue other interests.

Ms. Yan served as a senior financial analyst for Sara Lee Corporation
from January 2007 through July 2008. Prior to that, Ms. Yan served as a
financial analyst and project leader and formerly as a senior accountant
for World Richman Manufacturing Corporation, an international manufacturer
of leather goods. Ms. Yan is currently pursuing her MBA degree on a
part-time basis at University of Chicago with concentrations in accounting,
finance and strategic management. She obtained her Master of Education with
concentration in accounting from Calvin College at Michigan and her BA of
English in China.

“We are very pleased to have Ms. Yan join China Clean Energy as our
Chief Financial Officer,” said Mr. Tai-Ming Ou, CEO of China Clean Energy.
“We also greatly appreciate the unique contributions Gary made during his
tenure and wish him and his family the very best with his future
endeavors.”

“I am delighted to join China Clean Energy and look forward to working
closely with Mr. Ou to build China Clean Energy’s business,” commented Ms.
Yan. “I also look forward to working with the investment community to
communicate our strategic goals and objectives and update our progress.”

Business Outlook

China Clean Energy expects to report modest growth in revenues and
expects to be profitable for the second quarter of 2008. These results are
preliminary and subject to adjustment based on review by the Company’s
auditors. For the full year the Company expects revenues to grow in the
5-10% range over 2007 levels and the Company expects to remain profitable.

“Despite the challenges associated with rising raw materials costs that
temporarily have made biodiesel production uneconomic, China Clean Energy
has been able to successfully shift our product mix to increase production
of our high performance, environmentally friendly specialty chemicals to
sustain our operations on a profitable basis,” said Mr. Ou.

About China Clean Energy:

China Clean Energy, through its wholly-owned subsidiaries, Fujian
Zhongde Technology Co., Ltd. and Fujian Zhongde Energy Co., Ltd, is engaged
in the development, manufacturing, and distribution of specialty chemical
products made from renewable resources.

Safe Harbor Statement

This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. 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. These forward-looking statements
involve known and unknown risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the Company and
the industry. The Company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events or
circumstances, or to changes in its expectations, except as may be required
by law. Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, they cannot assure you
that their expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the anticipated
results.

For more information, please contact:

China Clean Energy Inc.
Ms. Shannon Yan, CFO
Email:
Web:  http://www.chinacleanenergyinc.com

CCG Elite Investor Relations Inc.
Mr. Crocker Coulson, President
Tel:  +1-646-213-1915 (New York)
Email:

Ed Job, Account Executive
Tel:  +1-646-213-1914
Email:
Web:  http://www.ccgir.com

SOURCE China Clean Energy Inc.