China Integrated Energy Completes Construction of New 50,000-ton Biodiesel Production Facility

XI'AN, China, Jan. 31, 2011 /PRNewswire-Asia-FirstCall/ -- China Integrated Energy, Inc. (Nasdaq: CBEH; the "Company"), a leading non-state-owned integrated energy company in the People's Republic of China, today announced that it has completed the construction of a new 50,000-ton biodiesel production facility, adjacent to its existing 100,000-ton biodiesel production facility in Tongchuan City, Shaanxi Province.

The new 50,000-ton production facility will bring the Company's total biodiesel production capacity to 200,000 tons per annum. The company operates a 100,000-ton biodiesel plant in Tongchuan City, Shaanxi Province and a 50,000-ton plant in Chongqing City, China.

The total construction cost of the new biodiesel production facility was approximately $19.3 million. $18.3 million has been paid by the Company to date, and the remaining $1 million will be paid in the first quarter of 2011.

The facility is expected to be operating at 25% - 30% capacity in the first quarter of 2011 and 50% - 60% capacity in the second quarter, ramping to 80% - 90% utilization rate in the third quarter. For the full-year 2011, the new facility is expected to contribute approximately $21 million in revenue and $5.2 million in net income.

The Company's advanced production technology at this second-generation 50,000-ton biodiesel facility is estimated to reduce production costs by approximately 20%. The new second-generation facility utilizes an even further diverse supply of raw materials, such as crop straw, agricultural waste and organic waste, and will provide the Company with better input cost controls while ensuring optimal capacity utilization.

"Our new biodiesel facility is an integral step in our growth strategy for 2011. It brings on line an additional 50,000 tons of capacity to meet the growing market demand for biodiesel, supported by the government's goal to increase renewable energy consumption to 15% of China's total energy consumption by year 2020," stated Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy. "This new facility, along with our plans to construct a 300,000-ton biodiesel plant (phase one with 200,000-ton) upon the acquisition of Hainan Lin Gao Chemical Co., will support our revenue and net income targets moving forward."

About China Integrated Energy, Inc.

China Integrated Energy, Inc. is a leading non-state-owned integrated energy company in China engaged in three business segments: the production and sale of biodiesel, the wholesale distribution of finished oil and heavy oil products, and the operation of thirteen retail gas stations. The Company operates at 200,000-ton biodiesel production capacity with two plants located in Tongchuan City, Shaanxi Province and one plant in Chongqing City, China. The Company utilizes a distribution network covering 16 provinces and municipalities, established over the past 11 years, to distribute both heavy oil and finished oil, including gasoline, petro-diesel and biodiesel. For additional information on the Company please visit http://www.chinaintegratedenergy.com.

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Safe Harbor Statement

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. For example, statements about the future use of the proceeds are forward looking and subject to risks. China Integrated Energy, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.