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China America Holdings Aohong Subsidiary to Distribute Refrigeration Lubricant Products Manufactured By CPI Engineering Services, Inc.

Posted on: Thursday, 29 May 2008, 06:00 CDT

China America Holdings, Inc. (OTCBB:CAAH), a diversified holding company operating in both the United States and China, announced today that its Shanghai Aohong subsidiary has begun to distribute refrigeration lubricant products manufactured by CPI Engineering Services, Inc. in China.

CPI Engineering Services, Inc., a subsidiary of the Lubrizol Corporation, has significant market share in the Chinese ozone-friendly refrigeration lubricant market. Refrigeration lubricant is an essential fluid used in conjunction with coolants to lubricate the refrigeration compressor system. This fluid is added into coolants and flows through the compressor to lubricate bearings, main parts, and the controlling systems. Aohong will distribute the products through its joint venture with Shanghai Mengda Chemical Co., Ltd. ("Mengda"). The joint venture, named Shanghai Mengjin Chemical Co., Ltd. ("Mengjin"), is 60% owned by Aohong and 40% owned by Mengda. Currently, Mengjin is distributing two of CPI's ozone friendly refrigeration lubricants branded Emkarate R and Icematic SW.

The series of refrigeration lubricants that Mengjin distributes in China are designed to be used with ozone friendly refrigerants. Demand for ozone friendly systems continues to rise in China as the business community places more emphasis on "green" products. Mengjin directly distributes these ozone friendly packaged lubricants to its end customers and anticipates that its distribution operations could generate over $4 million in revenues in 2008.

"We are excited to add CPI's products to our refrigeration lubricant product line. We anticipate that this arrangement will generate strong product sales as we strive to meet the growing demand for more environmentally friendly products. Aohong continues to add complimentary products to its business in an effort capitalize on its extensive distribution network. We anticipate these additional products, coupled with Aohong's current offerings, will continue to positively impact the bottom line of China America throughout 2008 and beyond," stated Dore Perler, CEO of China America Holdings.

CPI Engineering Services, a subsidiary or The Lubrizol Corporation, is a world leader in the synthetic lubricant compressor and pump industry. CPI connects the best of both worlds - the production capabilities and technical resources of major equipment and lubricant manufacturers with the flexibility and responsiveness of a service-oriented organization.

About China America Holdings, Inc.

China America Holdings, Inc. (OTCBB:CAAH) is a holding company with operations in the U.S. and China. China America Holdings has two operating divisions.

Shanghai Aohong Chemical Co., Ltd. based in Shanghai, China, is a distributor of assorted liquid coolants which are utilized in a variety of applications, primarily as refrigerants in air conditioning systems for automobiles, residential and commercial air conditioning systems, and a manufacturer of steel non-refillable cylinders. For more information, please visit http://www.shanghaiaohong.com/English/index.asp.

Sense Technologies, Inc., based in Fort. Lauderdale, FL, is a provider of biometric solutions, and micro-sensor identification systems. Sense develops products targeting Homeland Security, and offers solutions that improve and secure many business, military, and personal processes. Sense owns patents and intellectual property for a MEMS based explosives detection technology licensed through a national government laboratory. For more information about us, please visit our corporate website at http://www.chinaamericaholdings.com.

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China America Holdings, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result,""are expected to,""will continue,""is anticipated,""estimated,""intends,""plans,""believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding revenues, net income and earnings. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations: our ability to effectively integrate our acquisitions and to manage our growth and our inability to fully realize any anticipated benefits of acquired business; our need for additional financing which we may not be able to obtain on acceptable terms, the dilutive effect additional capital raising efforts in future periods may have on our current shareholders and the increased interest expense in future periods related to additional debt financing; our dependence on certain key personnel; the lack of various legal protections in certain agreements to which we are a party and which are material to our operations which are customarily contained in similar contracts prepared in the United States; our ability to assure that related party transactions are fair to our company; the business operating risks and hazards inherent in the segments we operate in; the effect of changes resulting from the political and economic policies of the Chinese government on our assets and operations located in the PRC; the influence of the Chinese government over the manner in which our Chinese subsidiaries must conduct our business activities; the impact on future inflation in China on economic activity in China; the impact of any recurrence of severe acute respiratory syndrome, or SAR's, or another widespread public health problem; the limitation on our ability to receive and use our revenues effectively as a result of restrictions on currency exchange in China; our ability to enforce our rights due to policies regarding the regulation of foreign investments in China; our ability to comply with the United States Foreign Corrupt Practices Act which could subject us to penalties and other adverse consequences; and our ability to establish adequate management, legal and financial controls in the PRC.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2007.

Source: Business Wire

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