China's Waste Recycling Company Sancon Announces Record Sales and Profitable Third Quarter 06.

SHANGHAI, China -- Sancon Resources Recovery Inc (OTCBB:SRRY), a growing industrial waste recycling company in China, today announced financial results for the quarter ended September 30, 2006.

Company Sees Strong Growth Through 2006

"We are pleased with the company's financial performance in the third quarter as we have exceeded our sales targets set after we became a public company," stated CEO of Sancon, Mr. Jack Chen. "Our results have reflected the successful integration of our China recycling operation with our Australian recycling operation, and the addition of recycled material trading operation based in Hong Kong. All three divisions of the company are headed by experienced local management teams and are fully on track with revenue targets. We continue to see strong demand for recycled plastic materials in China. We aim to grow sales rapidly to satisfy our customer demands with the new business initiatives we have launched recently."

For the quarter ended September 30, 2006, Sancon recorded revenues of $1,647,138, an increase of $1,485,629 or 920%, compared to $161,509 for the three months ended September 30, 2005. The sharp increase in revenues was due to healthy growth from Sancon Recycling (Australia) Ltd, and significant contribution from the Company's wholly owned subsidiaries, Digital Financial Services Ltd and Guangcheng International Trading Ltd, which started their operation in Q3 2006. Third Quarter 2006 Highlights:

* Third quarter revenues grew 920% to $1.65 million from $0.16 million for the same period of 2005.

* Gross profit increased to $0.2 million from $0.06 million for the same period of 2005.

* Net income was $21,686 compared with net loss $8,000 for the same period in 2005.

* Fully diluted EPS for the third quarter 2006 rose to positive $.001 from negative ($0.001) for the third quarter of 2005.

Mr. Chen added, "We are well positioned to become a significant player in the field of plastic recycling. With the financial leverage we achieved from being a public company we expect to expand our current production greatly to meet the demands from our customers. China export of plastic products runs over $10 billion a year in 2005, and China imports more than eight million tons of recycled plastic materials each year. We target to account for 1% of the total imports in the next two years which will triple our current production and output."

Operation Highlights

* Sancon reduces environmental damages by aggressively recycle industrial and commercial wastes such as plastics and cardboards from developed countries such as the US, Japan, UK and Australia.

* Sancon lowers the raw material costs for manufacturers in China by turning wastes into reusable materials that is ready to be re-entered into the production cycle of new products.

* Sancon launches innovative solutions in producing recycled materials in making new plastic products, i.e. Sancon pioneered "BIC Green Pen" with world's leading consumer brand BIC using polystyrene wastes

* Sancon creates more ways to recycle waste products such as electronic wastes, keeping hazardous materials free from our society, and recover valuable secondary raw materials.

About Sancon Resources Recovery Inc

Sancon Resources Recovery, Inc. (OTCBB:SRRY) collects and processes industrial and commercial waste plastics and sells them to manufacturing customers in China. Sancon also trades in recycled plastics originated from countries such as the US, Japan, and Australia. Its operations are in Guangdong Province in China, Australia, and Hong Kong. Today, Sancon serves many industrial clients throughout Asia and Australia and exports more than 25,000 tons of recycled industrial waste materials annually to its customers in China. The use of recycled materials is both environmentally friendly and an important part of the competitive manufacturing to lower raw material costs. The high cost of raw materials resulting from soaring oil prices for Chinese manufacturers have created tremendous demand for recycled waste materials generated from developed countries. For more information visit: www.sanconinc.com.

Forward-looking statements:

The statements made in this press release, which are not historical facts, may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.