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China Holdings Inc. Announces Joint Venture with Aroma International Petroleum (HK) Co., Ltd. to Develop 1.2 Million Cubic Meter Oil Storage Facility in China

2007-07-16 20:42 918

Aroma International Petroleum (HK) Co., Ltd. to Acquire Approximately 30% of China Holdings, Inc.

LAS VEGAS, July 16 /Xinhua-PRNewswire-FirstCall/ -- China Holdings, Inc. (OTC Bulletin Board: CHHL), a development stage company with the goal of becoming a leading diversified global asset holding company and engaged in multiple China-focused business activities including pharmaceutical, real estate, utilities, energy and finance, today announced that the Company has executed a memorandum of understanding (MOU) with Aroma International Petroleum (HK) Co, Ltd. for a 50%/50% joint venture investment partnership with its wholly-owned subsidiary Aroma International Petroleum (China) to complete development of a 1.2 million cubic meter (approximately 7.5 million barrel) oil storage facility (Tank Farm Area) and its auxiliary facilities. In addition, both parties agreed that Aroma International Petroleum (HK) Co. Ltd. will purchase approximately 30% of China Holdings, Inc. by acquiring 70 million shares of common stock from the Company's treasury shares within one month at a price to be negotiated later.

The MOU also provided China Holdings right of first refusal during the next 9 months for further development and investment in the joint venture investment partnership. The Companies agreed to execute a definitive agreement for their joint venture within one month upon mutually agreeable terms.

Under the terms of the MOU, China Holdings and Aroma International Petroleum agree to jointly invest, develop and construct the 1.2 million cubic meters oil storage facility (Tank Farm Area) and its auxiliary facilities, consisting of 2.2 square kilometers located in Yangkou Port, China. The project will require a total investment of approximately $235 million and completion is expected in approximately 2 years. The complex will be comprised of a 1.2 million cubic meter oil tank complex including the oil tank block, logistic park, pipeline wharf and a complete pipeline system.

There is abundant and stable demand for petroleum products in China and the expected capacity of the oil storage facility for all kinds of petroleum products is 2.5 million tons (approximately 2.4 million barrels) with an annual minimum capacity of 20 million tons (approximately 19 million barrels) to 37.5 million tons (approximately 35.7 million barrels).

About the Oil Storage Facility Location

Located in the Yangkou Port overlooking Korea and Japan from the Yellow Sea, the oil storage facility possesses a strategic proximity to Shanghai and the North part of Jiangsu Province. It is also well positioned to link midstream and upstream to the Yangtze River, which is the key route for water transportation in Central and East China. Yangkou is a unique and ideal location to build a modernized deepwater seaport with the capacity of over 200,000 tons to the north part of Yangtsi River Delta. Moreover, on one side of the water route there is a natural sandbank island (Sun Island) with an area of 6 km2, which is a significant location to be explored for dock storage. According to the scientific research, the watercourse of the Yangkou Port is well protected by natural underwater sandbanks on both sides so that destructive waves from the outer sea are reduced and there is no need for jetty construction.

About Aroma International Petroleum (HK) Co., Ltd. and Aroma International Petroleum (China) Co., Ltd.

Aroma International Petroleum (China) Co., Ltd. is a wholly-owned subsidiary of Aroma International Petroleum (HK) Co., Ltd., and engages in the petrochemical products, oil derivatives, oil & natural gas and energy resource industry. It is the first professional foreign-based enterprise in China that serves as an energy resource reserve specifically for the Chinese government. In addition, it is a large-scale foreign-invested company in the Chinese petroleum industry nationwide and is strategically positioned to participate more broadly in international economic and technological cooperation and competition.

The Company's objective is to achieve long-term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in China, and/or worldwide, and/or which derive a significant part of their revenue from China, and/or worldwide.

About China Holdings, Inc.

China Holdings, Inc. (OTC Bulletin Board: CHHL) is a development stage company with the goal of becoming a diversified global asset holding company. The Company and its subsidiaries engage in multiple China-focused business activities including pharmaceutical, real estate, utilities, energy and finance. Its objective is to achieve long-term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in China, and/or worldwide, and/or which derive a significant part of their revenue from China, and/or worldwide.

The Company has two wholly-owned subsidiaries: (i) China Power, Inc., and (ii) China Health Holdings, Inc. For more information, please see the Company's website at: http://www.chinaholdings.org .

To be added to China Holdings, Inc.'s investor email list, please contact Haris Tajyar, Managing Partner, at htajyar@irintl.com and/or Zachary Bryant at zbryant@irintl.com or at 818-382-9700.

About China Power, Inc.

China Power Inc., a wholly owned subsidiary of China Holdings, Inc, is a development stage company with the goal of becoming a global leading energy holding corporation, that focuses on the Merger & Acquisition, investment, Research & Development, construction and operation of energy, and renewable energy, and environment protection projects in China and worldwide. It expects to capture China's growing energy, renewable energy, and environment protection projects domestically and worldwide.

For worldwide investor and media inquiries, please contact:

China Holdings, Inc. (OTC Bulletin Board: CHHL)

Las Vegas and China

Julianna Lu

Chief Executive Officer

Tel/Fax: +86-10-6586-4790 (China)

+1-604-608-6788 (North America)

Mobile: +86-1370-133-1287 (China)

Email: info@chinahealthholding.com

Website: http://www.chinaholdings.org

Investor Relations International (Los Angeles)

Haris Tajyar, Managing Partner

Email: htajyar@irintl.com

Zachary Bryant

Vice President and Account Group Manager

Tel: +1-818-382-9718

Email: zbryant@irintl.com

Safe Harbor Statement: To the extent that statements in the press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company's development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward looking, all forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements, which may accompany the forward-looking statements, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the Company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. In addition, the company disclaims any obligation to update or correct any forward-looking statements in all of the Company's press releases to reflect events or circumstances after the date hereof.

Source: China Holdings, Inc.
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