China Evergreen announces acquisition of B.O.T. operating facilities

Wholly owned subsidiary Evergreen Asset Group Ltd. executes letters of intent to acquire 100% of two operating BOT (build, operate, transfer) waste water treatment facilities in Henan Province, China, for $7.7 million. The facilities currently process 130,000 cu. m/day (equivalent to 130,000 tonnes/day) of industrial and municipal waste water with a (municipal) water recovery component of 80,000 cu.m/day...

HONG KONG, Jan. 25, 2005 (BUSINESS WIRE) -- China Evergreen Environmental Corp., a wholly owned subsidiary Evergreen Asset Group Ltd., has executed letters of intent to acquire 100% of two operating BOT (build, operate, transfer) waste water treatment facilities in Henan Province, China.

The facilities currently process 130,000 cu. m/day (equivalent to 130,000 tonnes/day) of industrial and municipal waste water with a (municipal) water recovery component of 80,000 cu.m/day.

Total investment for the two projects is US$7.7 million, which will generate annual pre-tax profit of US$2.35 million per annum, or an internal rate of return of approximately 32% pa over the remaining (22 year) life of the facilities.

In announcing the agreement, Pu Chongliang, chairman of Evergreen Environmental commented: "The opportunity to acquire these high quality existing facilities at low cost and incorporate them into our existing network is attractive and an important part of our growth model. Given our patented treatment technology and efficient operational profile, we expect that Evergreen can further increase the throughput and profitability of each facility with a direct impact on our bottom line."

Pu continued, "There are many additional facilities, such as these which are currently operated by local government, that have been slated for privatization. Our track record as a pioneer in this business and reputation for efficiency and technological superiority ensured that Henan Province approached us first when seeking a private sector operator for what are two key facilities in the Province, and enabled us to negotiate very attractive investment terms. As the leading designer, engineer and developer of waste water treatment facilities in China, Evergreen has successfully completed 11 projects since 1999 and currently has an order backlog of over US$50 million for both turnkey and BOT projects."

About Evergreen
Evergreen Asset Group Ltd is a leading designer, engineer and developer of waste water treatment facilities in China. With its proprietary technology resources and project management experience, the company provides both turnkey and BOT (build, operate, transfer) services to a range of industrial companies and municipalities throughout China.

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