China Everbright International Ltd.

07/07/2008

Jiangyin Waste-to-energy Project Commences Commercial Operation

Urban Waste Water Upgrading Project Starts Running

Offers Complete Solution toPollution in Jiangyin

China Everbright International Limited (“Everbright International” or the “Company”) announced that its waste-to-energy project in Jiangyin, Jiangsu province has commenced commercial operation and its urban waste water treatment plant upgrading project in the city was also completed. A ceremony marking the inauguration of the projects was held on 4 July and attended by representatives of provincial and municipal government departments.

Jiangyin Waste-to-Energy Project

In January 2006, the Company secured Jiangyin waste-to-energy project on BOT basis with an exclusive operation right for 30 years. The project is divided into two phases. With a total investment of approximately RMB389,000,000, Phase I has a daily designed processing capacity of 800 tonnes and will supply no less than 77,000,000 KWh of electricity to the power grid per year during the concession term. Phase I construction was completed and started supplied electricity to the power grid in January this year, two months ahead of schedule and has begun commercial operation on 26 March. Phase II, with a designed processing capacity of 400 tonnes a day, is being planned.

Jiangyin Waste Water Treatment Upgrading Project

Jiangyin waste water treatment project is the Company’s first water treatment project in Jiangsu province and its “first stop” to restore water quality in the Taihu Lake region. The acquisition cost of the project is RMB624,000,000 with the Company holding 70% equity interest. In January this year, four water treatment plants in Jiangyin region were formally handed over to the Company for upgrading to National Grade 1A water discharge standard. The upgrade cost is RMB201,000,000 and was completed on schedule this month with the designed daily waste water treatment capacity reaching 190,000 tonnes.

Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, “Jiangyin has had strong economic growth in recent years and a commercial sector with rising need for environmental protection services. To tap this market with strong growth potential, the Company adopting a practical yet effective approach managed to develop environmental protection projects including the waste-to-energy projects and waste water treatment projects with much success in just a few years. Furthermore, we signed a letter of intent with the Jiangyin municipal government to invest in an urban and a rural sewage piping network, and waste water treatment plants in the next two to three years. Our ultimate goal is to create an integrated plant and piping network system that can serve as the first model project integrating urban and rural waste water treatment operations in one system in China. ”

“This is just the beginning of our work in Jiangyin. In addition to the two projects, we will actively seek to expand into urban sludge treatment and methane-to-energy areas, so as to offer solutions to all the different environmental protection problems encountered by the city, while enhancing the reputation of the ‘Everbright Environment’ brand and in turn the Company’s profit.” Mr. Chen concluded.