September 11, 2008

China Clean Energy Updates Progress on Jiangyin Plant Construction

FUQING CITY, China, Sept. 11 /Xinhua-PRNewswire-FirstCall/ -- China Clean Energy Inc. (BULLETIN BOARD: CCGY) ("China Clean Energy", the "Company") today updated investors with regards to the progress made on the construction of its Jiangyin Plant.

China Clean Energy has completed the building structure of its office and inspection facilities as well as 3 of the planned 6 stories at the main factory building. China Clean Energy has also purchased boilers, storage tanks and reaction kettles in addition to completing the foundational work necessary to accommodate this equipment. Once the construction of the new facility is completed, it will have the flexibility to produce 100,000 tons of biodiesel per year, or 100,000 tons specialty chemicals per year, or a combination of biodiesel and specialty chemicals for a total output of approximately 100,000 tons per year.

In order to procure additional raw material feedstock to support its capacity expansion, China Clean Energy continues to negotiate with a group of Indonesian and Malaysian waste palm oil suppliers. The Company expects it to begin importing waste palm oil prior to the new Jiangyin Plant starting production of biodiesel and other specialty chemicals.

"We are very pleased with the progress we have made on the build-out of our Jiangyin Plant and we will try our best to finish the construction work by the end of 2008 should there be no interruption from inclement weather or other uncontrollable circumstances," said Mr. Tai-Ming Ou, CEO and Chairman of China Clean Energy Inc. "With our proprietary technology, as well as our experienced management team, we remain hopeful that we will be in a position to restart our biodiesel production once the margin structure in this industry returns to historical norms. We also remain very positive on our specialty chemical business and feel that the expanded production capacity from our Jiangyin Plant will strengthen our competitive position and drive strong revenue and profit growth in the years ahead," concluded Mr. Ou.

For more information on China Clean Energy's construction update, please visit China Clean Energy's website at:

About China Clean Energy:

China Clean Energy, through its wholly-owned subsidiaries, Fujian Zhongde Technology Co., Ltd. and Fujian Zhongde Energy Co., Ltd, is engaged in the development, manufacturing, and distribution of specialty chemical products made from renewable resources.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the Company; the ability of the Company to expand its production capacity; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

   For more information, please contact:    China Clean Energy Inc.    Shannon Yan, CFO    Email: [email protected]    CCG Elite Investor Relations Inc.    Crocker Coulson, President    Phone: +1-646-213-1915 (New York)     Ed Job, CFA    Phone: +1-646-213-1914    Email: [email protected]  

China Clean Energy Inc.

CONTACT: Shannon Yan, CFO of China Clean Energy Inc.,[email protected]; or at CCG Elite Investor Relations Inc,Crocker Coulson, President, +1-646-213-1915 (New York), or Ed Job, CFA, +1-646-213-1914, or [email protected], for CCGY

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