Environment Ecology Holding Company of China Announces 2007 Annual Report of Wholly-Owned Subsidiary Sees Profit Break US$1 Million

-- Company Sees First Major Milestone in Corporate History --

XI'AN, Shaanxi, China, Feb. 1 /Xinhua-PRNewswire-FirstCall/ -- Environment Ecology Holding Company of China (OTC Bulletin Board: EVEH), a leading landscape engineering company in China, today announced the preliminary data in unaudited 2007 annual report of its wholly-owned subsidiary Shan Xi Li Bao Ecology 2007 reveals a net profit exceeding US$1 million for the first time in the company's history.

"Li Bao Ecology achieved its first US$1 million fiscal year, which is an outstanding accomplishment," said Liu, Sheng Li, President and Chairman. "But compared to the rapid growth rate of the company, this is just the beginning."

The company considers the US$1 million an important breakthrough in the company's history due to a number of unforeseen competitive challenges it faced in 2007.

Ma, Shun Cheng, Chief Financial Officer, explained that the company saw an influx of real estate developers from other provinces entering the Xi'an market with their own low-cost workers in 2007. Although the company has mastered the walnut seedling technology and began promotion of itself as a leader in the field, developers unfamiliar with the Xi'an market hired local farmers rather than expert planting companies, such as Li Bao Ecology.

Now experienced in dealing with the non-local market real estate developers, the company is prepared to overcome the challenges that lie ahead by further promoting itself as an expert in the field of seedling technology and corporate service.

"Our success can be attributed to very distinct factors: our technology and our commitment to quality," said Ma, Shun Cheng. "Every department of this company employs a positive approach to problem solving -- from the marketing department who shows clients the advantageous and mature technology on down through to the after-sales staff who keep abreast of clients' products and operations if any after-sales services are necessary.

About Environment Ecology Holding Company of China

Shan Xi Li Bao Ecology Co., Ltd. (the Company) is a wholly owned subsidiary of Environment Ecology Holding Company of China

(OTC Bulletin Board: EVEH). The Company is an integrated provider of combined garden afforestation design and construction, municipal government garden Greenland, garden afforestation seedling production and operation. The Company has developed a number of new clean technologies for garden project construction and garden breeding. With the authorized senior qualification, it is a leading company in the industry with the highest market share, the largest breeding base and the highest brand value in northwestern China. The Company has conducted many afforestation projects of with a success rate above 90%. The Company has recognized with national, municipality-level and district-level awards in the PRC. More information about the company can be found on the corporate web site at .

Forward-looking Statements

Certain statements in this report, including statements of our expectations, intentions, plans and beliefs, including those contained in or implied by "Management's Discussion and Analysis" and the Notes to Consolidated Financial Statements, are "forward-looking statements," within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that are subject to certain events, risks and uncertainties that may be outside our control. The words "believe," "expect," "anticipate," "optimistic," "intend," "will," and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any

forward-looking statements. These forward-looking statements include statements of management's plans and objectives for our future operations and statements of future economic performance, information regarding our expansion and possible results from expansion, our expected growth, our capital budget and future capital requirements, the availability of funds and our ability to meet future capital needs, the realization of our deferred tax assets, and the assumptions described in this report underlying such forward-looking statements. Actual results and developments could differ materially from those expressed in or implied by such statements due to a number of factors, including, without limitation, those described in the context of such

forward-looking statements.

For more information, please contact:

Environment Ecology Holding Company of China

Tel: +86-29-8726-3789


Source: Environment Ecology Holding Company of China
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