omniture

China Industrial Waste Management, Inc. Acquires 65% Interest of Hunan Hanyang Environmental Protection Science & Technology Co., Ltd.

DALIAN, China, Sept. 22 /PRNewswire-Asia/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT) ("China Industrial Waste Management" or the "Company"), a PRC-based industrial waste processor and provider of environmental protection, pollution treatment and waste management design services, announced today that the Company's 90%-owned subsidiary, Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dalian Dongtai") has signed with Hunan Luyi Industrial Development Co., Ltd ("Hunan Luyi") and Ms. Song Wenling to acquire 65% interest of Hunan Hanyang Environmental Protection Science & Technology Co., Ltd. ("Hunan Hanyang") for RMB15 million (approximately $2.2 million) in cash on September 18, 2009. After the transaction, Dalian Dongtai and Hunan Luyi will hold 65% and 35% of the equity interest in Hunan Hanyang, respectively.

Headquartered in Changsha, the capital city of Hunan Province, Hunan Hanyang is engaged in the business of treatment and comprehensive utilization of waste and the management and operation of waste treatment facilities. In 2006, Hunan Hanyang signed a BOT Agreement with the Bureau of Environmental Protection of Hunan Province, pursuant to which Hunan Hanyang has the right to construct and operate the Hazardous Waste Treatment Center of Changsha City, Hunan Province (the "Center") for 25 years upon completion of construction. The Center is one of fifty-five hazardous waste treatment centers included in the Chinese government's National Construction Planning of Hazardous Waste and Medical Waste Disposal Facilities. Hunan Hanyang is also authorized to perform collection, disposal and treatment of hazardous waste generated from 10 cities including Changsha, Zhuzhou, Changde, Yiyang, Xiangtan, Yueyang, Zhangjiakou, Huaihua, Loudi and Xiangxi in northern Hunan Province during the franchising period.

The total cost to construct the new facility is estimated to be RMB185 million (approximately $27.1 million), 60% of which, RMB110 million (approximately $16.1 million), will be subsidized by the central government. The subsidy of RMB110 million will be allocated to Hunan Hanyang by installment based on construction progress. The Center will include a storage facility, an incinerator, a hazardous waste landfill, and an industrial effluent treatment facility, with a total capacity of 46,000 tons per year. Management anticipates that the Center will be operational in early 2012 as it will take two years to complete the construction.

"We are pleased to acquire a 65% interest in Hunan Hanyang as this is a cornerstone for us to execute our expansion into this fast-growing region and provide advanced hazardous waste processing to the local industry," said Mr. Jinqing Dong, the Company's Chief Executive Officer. "Changsha is one of the rapidly developing cities in central China. The growing economy requires more capacity for industrial waste treatment so as to support a long-term and sustainable development. We look forward to leveraging our expertise in environmental protection to capture the growing demand in central China."

During the first six months of 2009, GDP of Hunan Province increased 12.8% year-over-year to RMB535 billion, 25% of which was contributed by Changsha, the capital city. The industry development zones in Changsha and cities nearby have attracted companies in machining, auto manufacturing, pharmaceuticals, and electronics industries, who are either expanding production capacity or moving from coastal regions to central China.

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit: http://www.chinaciwt.com .

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

For more information, please contact:

Company Contact:

Ms. Guo Xin, CFO

Tel: +86-411-8581-1229

Email: hellenguo@chinaciwt.com

Mr. Zhang Dazhi, Company Secretary

Tel: +86-411-8259-5339

Email: darcy.zhang@chinaciwt.com

Web: http://www.chinaciwt.com

CCG Investor Relations:

Mr. Crocker Coulson, President

Phone: +1-646-213-1915 (New York)

Email: crocker.coulson@ccgir.com

Web: http://www.ccgirasia.com

Source: China Industrial Waste Management, Inc.
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