Sancon Reports Full Year Results for 2006 and Records Strong Growth.

SHANGHAI, China -- Sancon Resources Recovery Inc (OTCBB:SRRY), a growing industrial waste recycling company with operations in China and Australia, today announced it reported operating results for the financial year ending December 2006.

2006 Financial Year Highlights are:

* 2006 revenues grew 294% to $3.45 million from $2.57 million in 2005.

* Gross profit increased to $0.52 million in 2006 from $0.24 million in 2005.

* Net income was $17,902 compared with net loss of $42,552 in 2005.

* Two new operating entities were launched for trading of plastic waste materials.

* Australia division reprocesses EPS waste materials from Veolia Environment Services (Collex).

* Entry into the electronic waste business through a partnership with Australia's computer distributors.

* Supply of plastic waste recovery solutions to Cleanaway.

* Numerous customer wins in Australia and Asia in both public and industrial sectors.

Sancon reported an increase of revenue by $2,572,002 or 294% from $875,400 in 2005 to $3,447,402 in 2006. The sharp increases were mainly due to the significant sales amount contributed from two newly launched subsidiaries in Hong Kong in 2006 engaging in plastic waste material trading and export business.

The gross profit for the year ended December 31, 2006 was $518,261, representing 116% increase compared to $239,398 for 2005. The increase of the gross profit was a direct result of increase in revenue. However the gross margin dropped from 27.6% in 2005 to 15.0% in 2006 mainly due to lower gross margin business from its newly launched material trading businesses. The collection, material reprocessing and recovery business operated in Australia has higher margins. The trading business is highly complimentary to the reprocessing business and it's launched to gain a much bigger footprint in the market place and to win more end customers.

Sancon Anticipates Stronger Growth in 2007

"We are pleased with the company's financial performance in 2006 as we have executed 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 Chinese recycling operation with our Australian recycling operation, and the addition of material trading operations, which all contributed strongly to our sales. All three divisions of the company are headed by an experienced management team and are fully on track with $8mil revenue target for 2008. We continue to see strong demand for plastic production and for our recycled material business in China. With our three divisions, we look forward to growing our operations in China to satisfy customer demands and capture market opportunities."

Mr. Chen added, "We are well positioned to become a significant player in the field of plastic recycling in China. The export of plastic products from China exceeded $10 billion in 2005, and China imports more than eight million tons of recycled plastic materials each year and growing. We anticipate being able to reach our target of 1% of the total national imports in the next two years, which will triple our current production and output. We plan on updating the market with our progress periodically."

Sancon collects and processes industrial and commercial waste plastics and sells them to manufacturing customers in China. Sancon also trades in recycled plastics originating from developed countries such as the US, Japan, and Australia. Its operations are located in Guangdong Province of China, Australia, and Hong Kong. The total annual turnover of the global recycling market exceeds $160 billion according to the Bureau of International Recycling (BIR), and is dominated by major multi-nationals such as Allied Waste (NYSE:AW), Waste Management, Inc. (NYSE:WMI), Veolia Environment (NYSE:VE), Republic Services (NYSE:RSG), and Covanta Holding (NYSE:CVA). The Chinese market for high quality waste management solutions is still in its infancy of development, yet it is fast growing and is wide open for young, innovative companies like Sancon. For more information: 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.