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China Bio Energy Holding Announces Acquisition of Gas Station in the City of Xi'an

Posted on: Monday, 17 August 2009, 15:15 CDT

XI'AN, China, Aug. 17 /PRNewswire-Asia-FirstCall/ -- China Bio Energy Holding Group Co. Ltd. (Nasdaq: CBEH) (the "Company"), a leading integrated bio-diesel producer & distributor, wholesale distributor and processor of heavy oil and finished oil products, and operator of retail gas stations in China, today announced that it has reached an agreement to acquire, through a 29-year lease, all of the assets of a gas station located in the city of Xi'an, Shaanxi Province, PRC.

The gas station was acquired for a total consideration of $8.5 million and will be operated under a 29-year lease. The gas station distributes both gasoline and diesel, which includes blended bio-diesel. During the past twelve months, the gas station sold approximately 4,300 tons of fuel and generated revenues of $4.1 million. For the next twelve months, the Company estimates it will sell approximately 6,000 tons and generate approximately $5.3 million in revenues.

Operating as both a producer and distributor, China Bio Energy has the ability to provide stable supply for each of its six gas stations. Customers pay cash with an average inventory turn of 3 days. As of March 31, 2009, average gross margins for its service stations were 13% with net margins of 11%, which is higher than traditional distribution.

"We are pleased to complete this acquisition, which marks our seventh gas station in Shaanxi province," stated Mr. Gao Xincheng, Chief Executive Officer of China Bio Energy Holding Group. "This acquisition is part of our strategy to lease an additional three to four gas stations by the end of 2009, which will provide incremental revenues and profitability."

About China Bio Energy Holding Group

CBEH is a distributor of refined oil products including gasoline, diesel, and heavy oil, and a manufacturer and distributor of bio-diesel fuel. CBEH's bio-diesel fuel is made at its 100,000-ton capacity facility in Shaanxi Province. Feedstock consists of naturally growing non-edible seeds and waste oil from restaurants. CBEH's bio-diesel can be used as a complete substitute for petro-diesel or can be blended with petro-diesel. The Company's products are sold via its own distribution network, which includes six retail gas stations in Shaanxi Province that have both road and rail access.

Cautionary Statement Regarding Forward-Looking Information

The upcoming presentations and discussions may contain forward-looking information about the Company. Forward-looking statements are statements that are not facts. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and statements which may include discussions of strategy, and statements about industry trends future performance, operations and products of each of the entities referred to above. Actual performance results may vary significantly from expectations and projections as a result of various factors, including without limitation and the risks set forth "Risk Factors" contained in the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and the Registration Statement on Form S-1 and the amendments thereto filed with the Securities and Exchange Commission.

SOURCE China Bio Energy Holding Group Co. Ltd.

Source: PR Newswire

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