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China Clean Energy Expands Specialty Chemicals Product Offering with Launch of High Performance Hot Melt Adhesives

China Clean Energy Inc., a leading producer of biodiesel fuel and environmentally-friendly specialty chemical products made from renewable resources in The People's Republic of China ("PRC"), today announced that it has successfully upgraded its specialty chemicals plant to produce High Performance or Multi-Purpose Hot Melt Adhesives from its patented proprietary processes.

The Company expects to start its High Performance Hot Melt Adhesives production in January of 2008 with annual capacity of approximately 500 tons. China Clean Energy believes it is the first company in China to produce High Performance Hot Melt Adhesives made from environmentally-friendly renewable resources, such as waste oil and yellow grease, using its patented technology. Currently, High Performance Hot Melt Adhesives consumed in China are mostly imported from Europe at a cost of approximately RMB 50,000 per ton, equivalent to about $6,756 per ton at today's foreign currency exchange rates. The Company plans to price its High Performance Hot Melt Adhesives in the range of RMB 35,000 to 40,000 or about $4,700 to $5,400 per ton with over 50% gross margins, and expects this product introduction to make an important contribution to its profitable growth in 2008.

"We are very excited to announce this important addition to our specialty chemicals product line," commented Mr. Tai-ming Ou, China Clean Energy's Chairman and Chief Executive Officer. "This product launch underscores our commitment leveraging our proprietary technology to broaden our product offering, expands our margins and accelerates our profitable growth."

High Performance Hot Melt Adhesives are used primarily for semiconductors, textiles, consumer appliances, and other pressure-sensitive applications, and product assembly processes in various industries, including construction, electronics and automotive industries. The Company believes that there is increasing demand for its vegetable oil-based specialty chemical products, due to high petroleum prices as well as increased awareness and concern for protecting the environment. In addition, China Clean Energy believes that its ability to sell higher value-added specialty chemical by-products such as High Performance Hot Melt Adhesives will help expand its margins and strengthen its competitive position relative to any existing biodiesel competitor, as it can leverage its existing relationships with feedstock suppliers at the same time it diversifies its revenue base.

http://www.chinacleanenergyinc.com

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