RINO Signs Sinter Flue Gas Desulphurization BOT Contracts with Shougang Jingtang Iron & Steel Co., Ltd. Valued at $118 million

DALIAN, China, Jan. 22 /PRNewswire-Asia-FirstCall/ — RINO International
Corp. (Nasdaq: RINO), which through its subsidiaries and controlled affiliates
(collectively, the “Company” or “RINO”), designs, manufactures, installs and
services proprietary and patented wastewater treatment, desulphurization
equipment, and high temperature anti-oxidation systems for iron and steel
manufacturers in the People’s Republic of China (“PRC”), today announced that
it signed Sinter Flue Gas Desulphurization BOT (Build-Operate-Transfer)
contracts with Shougang Jingtang Iron & Steel Co., Ltd. The BOT contracts
consist of a build contract and an operating contract, valued at a total of
$118 million. Shougang Jingtang Iron & Steel Co., Ltd. is owned 51% by
Shougang Iron & Steel and 49% by Tangshan Iron & Steel Co., Ltd.

The build contract, valued at $33.8 million, includes $25.8 million
construction principal and $8 million in interest, covers the design,
construction and installation of two Semi-Dry Flue Gas Desulphurization (“FGD”)
Units, each of which is approximately 500 square meters in size, which
collectively produce approximately 11 million tons of sinter mine annually.
The project commenced at the Hebei Province Tangshan City Caofeidian Industry
zone facility with initial engineering design work on January 1, 2010 and the
installation will be completed by September 30, 2010. RINO anticipates these
systems will filter at least 91.7% of the sulphur dioxide produced, from
sinter mines.

The customer will make an initial payment of $4.0 million one year after
the FGD Units have received product approval by the customer and environmental
acceptance by the State Environmental Protection Department. The balance of
the build contract amount will be paid in annual installments of approximately
$3.0 million, which includes interest at a blended rate of 5.75%. Gross
margins associated with the build contract are estimated at approximately 38%.

The operating contract, valued at approximately $84.3 million, has a 10-
year term, will commence upon receipt of final State Environmental Protection
Department approval. RINO will be responsible for daily operation of the two
FGD Units installed under the build contract. This includes obtaining
desulfurization supplies such as lime, and utilities, such as process water,
power and compressed air, in addition to staff salaries, maintenance repair
and FGD ash handling fees. Under the operating contract, the customer shall
make annual payments to RINO of approximately $8.24 million through monthly
installments. RINO will bear the utility expenses estimated at $6.21 million
annually, which are the largest component of the operating costs. RINO will
also receive $1.9 million for maintenance upgrades of the FGD Units in the
fifth year.

After the final payments under the BOT Contracts, the ownership of the FGD
Units will be transferred to Shougang Jingtang Iron & Steel Co., Ltd.

“We are extremely pleased to finalize this contract with Shougang Jingtang
Iron & Steel Co., Ltd, a top Steel Producer in China with annual production of
approximately 10 million tons,” stated Mr. Zou Dejun, President and CEO of
RINO International. “Shougang Jingtang Iron & Steel Co., Ltd. currently
operates two sinters at its newly established production facilities measuring
1,000 square meters in total capacity. The Company has plans to double its
capacity in the near term, which will create an incremental future opportunity
for additional FDG systems.”

“This is the first BOT agreement signed to date and is a means for meeting
our customers’ operating objectives while providing long term recurring
revenue for RINO. This is a true win-win for both parties. We are encouraged
by this new model and believe it will serve as a model for future agreements
with top tier steel producers as the government continues to support
installation of flue gas desulphurization systems and more actively regulates
emission standards.”

ABOUT RINO INTERNATIONAL

We are an industrial technology-based environmental protection and
remediation company based in China. Specifically, through our subsidiaries
and controlled affiliates in China, we are engaged in the business of
designing, manufacturing, installing and servicing wastewater treatment and
exhaust emission desulphurization equipment principally for use in China’s
iron and steel industry, and anti-oxidation products and equipment designed
for use in the manufacture of hot rolled steel plate products. All of our
products are custom-built for specific project installations, and we execute
supply contracts during the design phase of our projects. Our products are all
designed to reduce industrial pollution, energy utilization, or both.

    For more information, please contact:

    For the Company:
     Jenny Liu
     Tel:   +86-411-8766-2700
     Email: jennyliu@rinogroup.com

    Investors:
     Matt Hayden
     HC International, Inc.
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net

SOURCE RINO International Corp.