NOVEMBER 2008

China Bio Energy adds four retail bio-diesel gas stations

China Bio Energy Holding Group (CBEH), an energy company that distributes heavy oil and finished oil products and the production and distribution of bio-diesel fuel, announced that it has added four retail gas stations to its operations. China Bio Energy now operates five retail gas stations.

The stations, previously operated by the Shaanxi Highway Service Company and equipped to sell gasoline and diesel fuel, are all located along major highways in Shaanxi Province. CBEH will operate the stations under long-term leases for which the initial duration is 15 years.

The Company expects that annual revenue per station will average at least $8 million and anticipates net margins of 10 percent or more.

“We are very pleased to have expanded our retail business,” stated Gao Xincheng, chief executive officer of China Bio Energy. “Demand for fuel is high in China and often outstrips supply. As such, retailers are frequently unable to secure enough supply to sustain operations. Because we regularly distribute large amounts of gasoline and diesel fuel it is relatively easy for us to secure supply. In our bio-diesel business our ability to utilize our existing fuel distribution network to facilitate sales has allowed us to grow rapidly without having to invest significant time and capital into developing a new customer base.”