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China Bio Energy Reports Fiscal 2007 Financial Results.

 -- Full Year Revenue Increases 60% to $87.1 Million

 -- Full Year Net Income Increases 61% to $8.6 Million




XIAN, China, April 1, 2008 /Xinhua-PRNewswire-FirstCall/ -- China Bio Energy Holdings (BULLETIN BOARD: CBEH) , (CBEH or the "Company"), an energy company engaged in the wholesale distribution and processing of heavy oil and finished oil products and the development, production and distribution of bio- diesel fuel, today announced consolidated financial results for the fiscal year ended December 31, 2007.

Fiscal 2007 Results

Net sales for 2007 were approximately $87.1 million, a 60% increase as compared to net sales in 2006 of approximately $54.4 million. The net sales increase was a result of the Company's territorial expansion into five new provinces in China through the opening of two new representative offices. In addition, the Company started production of the new biodiesel production line in October 2007, which resulted in a $4.4 million increase in biodiesel sales.

Gross profit was approximately $10.5 million for 2007, an increase of 58% as compared to approximately $5.8 million for 2006. Gross margin as a percentage of sales increased from 11% in 2006 to 12 % in 2007. The slight increase in gross margin was mainly due to greater production of biodiesel and sales volume of oil products in 2007.

Operating expenses, consisting of selling, general and administrative expenses, were approximately $2.1 million for 2007 as compared to $0.4 million for 2006, an increase of approximately $1.8 million or 498%. General and administrative expenses increased $1.3 million from 2006, of which $1.1 million was associated with the Company's reverse merger and financing in 2007. The major expenses related to the reverse merger and financing included U.S. and Chinese legal counsel expenses, auditing expenses, consulting expenses, and due diligence expenses.

Net income in 2007 was $8.6 million as compared to $5.3 million in 2006, an increase of $3.2 million or 61%. This increase was due to the benefit of the economies of scale resulting from the growth in revenue and corresponding efficiencies in manufacturing operations and the extension in industry chain. Earnings per diluted share decreased to $0.21 in 2007 from $0.22 in 2006, a decrease of roughly 5%. The decrease was primarily the result of a $3.4 million deemed dividend to preferred shareholders related to warrants and conversion rights attached to the Company's preferred shares. The management of CBEH believes that the sales revenue and net income will continue to grow well as the increases of the output of biodiesel and oil products business. Excluding the deemed dividend to preferred shareholders, earnings per share actually increased 55% to $0.34 per share.

"We are pleased with our results for 2007," stated Gao Xincheng, Chief Executive Officer of China Bio Energy. "All segments of our business experienced significant growth and we believe that we are well positioned to continue growing. With the launch of our new bio diesel production facility in October of 2007 we expect bio diesel fuel revenue to continue to increase in 2008. As we did in 2007 we plan to continue to strengthen our distribution channel for our petroleum products business and expect that business to continue to grow as well."

About China Bio Energy Holdings

CBEH is a distributor of petroleum related products and a manufacturer and distributor of biodiesel fuel. CBEH sells a variety of related products including, gasoline (used primarily in automobiles), diesel fuel (commercial vehicles, agricultural machines, etc.), heavy oil and slurry (ship boilers, heating furnaces, metallurgical furnaces and other industrial furnaces), residual oil (utilized to manufacture petroleum coke, residual lubricating oil and asphalt or as a feedstock for cracking), and naphtha (used to manufacture ethane, propane, benzene, toluene and xylene). Sales of oil products in 2007 currently accounts for approximately 94% of CBEH's total revenues.

Bio-diesel refers to a clean burning alternative fuel produced from domestic, renewable resources. Bio-diesel is made through a chemical process whereby glycerin is separated from fat or vegetable oil. Bio-diesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a bio-diesel blend and can be used in compression-ignition (diesel) engines with little or no modifications. Bio-diesel is the ideal substitute of petro-diesel and it has many benefits, including excellent environmental performance, superior ignition, compatibility with existing diesel engines, better lubrication to extend the life time of engines, and renewability. Sales of bio-diesel fuel in 2007 account for approximately 6% of the Company's total revenues. The percent of bio-diesel in the Company's total revenues will increase greatly as the output of biodiesel increases.

Safe Harbor Statement

This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov/ ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
 CHINA BIO ENERGY HOLDING GROUP CO., LTD. AND ITS SUBSIDIARIES
 CONSOLIDATED BALANCE SHEET

 As of December 31,
 2007 2006
 ASSETS
 CURRENT ASSETS
 Cash and cash equivalents $1,382,371 $ 631,443
 Restricted cash 200,000 641,433
 Accounts receivable, net 288,589 5,745,362
 Other receivables 1,548,681 159,857
 Prepaid expenses 2,896,493 --
 Advance to suppliers 16,546,506 4,276,233
 Inventories 12,082,962 7,303,981
 Advance to shareholders -- 22,054
 Due from related party 593,696 315,497
 Total current assets 35,539,298 19,095,860
 CONSTRUCTION IN PROGRESS -- 515,742
 PROPERTY AND EQUIPMENT, net 8,166,250 704,871

 TOTAL ASSETS $43,705,548 $20,316,473

 LIABILITIES AND STOCKHOLDERS'
 EQUITY
 CURRENT LIABILITIES
 Accounts payable 179,617 2,267,116
 Advance from customers 499,908 381,809
 Value added tax payable 125,015 744,666
 Other payables 3,165,677 282,638
 Accrued expenses 67,875 --
 Notes payable - trade /
 related party -- 1,282,052
 Loan payable 1,370,877 1,019,231
 Long term notes payable -
 current portion 67,287 36,670
 Total current
 liabilities 5,476,256 6,014,182
 LONG TERM LIABILITIES 33,655 61,862
 Total liabilities 5,509,911 6,076,044

 COMMITMENT AND CONTINGENCIES
 STOCKHOLDERS' EQUITY
 Preferred stock, $.001 par
 value; authorized shares
 1,000,000; issued and
 outstanding 1,000,000 shares 1,000 --
 Common stock, $.0001 par
 value; authorized shares
 80,000,000; issued and
 outstanding 25,454,545 and
 23,954,545 as of December
 31, 2007 and 2006,
 respectively 2,545 2,395
 Paid in capital 19,611,938 2,533,837
 Statutory reserve 2,051,030 1,110,374
 Accumulated other
 comprehensive income 2,319,732 624,806
 Retained earnings 14,209,392 9,969,017
 Total stockholders'
 equity 38,195,637 14,240,429

 TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY $43,705,548 $20,316,473



 CHINA BIO ENERGY HOLDING GROUP CO., LTD. AND ITS SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

 For The Years Ended December 31,
 2007 2006 2005
 Net sales $87,104,187 $54,427,820 $29,217,184
 Cost of goods sold 77,006,690 48,666,440 24,843,313
 Gross profit 10,097,497 5,761,380 4,373,871
 General and
 administrative expenses 1,686,760 356,392 216,362

 Income from operations 8,410,737 5,404,988 4,157,509
 Non-operating income (expenses)
 Interest income expenses) (142,442) (86,254) (16,422)

 Other income 328,264 24,845 --

 Financial expenses (16,994) -- --
 Total non-operating
 income (expenses) 168,828 (61,409) (16,422)
 Net income 8,579,565 5,343,579 4,141,087
 Other comprehensive item
 Foreign currency
 translation gain 1,694,926 464,099 128,667
 Comprehensive Income $10,274,491 $ 5,807,678 $ 4,269,754

 Net income $ 8,579,565 $ 5,343,579 $ 4,141,087
 Deemed dividend to
 preferred stockholders 3,398,534 -- --
 Net income available to
 common stockholders $ 5,181,031 $ 5,343,579 $ 4,141,087
 Basic and diluted
 weighted average shares
 outstanding
 Basic 24,238,107 23,954,545 23,954,545
 Diluted 25,145,122 23,954,545 23,954,545
 Basic and diluted net
 earnings per share
 available to common
 stockholders
 Basic $ 0.21 $ 0.22 $ 0.17
 Diluted $ 0.21 $ 0.22 $ 0.17




 CHINA BIO ENERGY HOLDING GROUP CO., LTD. AND ITS SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOW

 For The Years Ended December 31,
 2007 2006 2005
 CASH FLOWS FROM OPERATING
 ACTIVITIES:
 Net income $8,579,565 $5,343,579 $4,141,087
 Adjustments to
 reconcile net income
 to net cash provided
 by operating
 activities:
 Depreciation 228,833 104,443 65,861
 Bad debt expenses -- 28,930 --
 (Increase) decrease
 in current assets:
 Accounts receivable 5,644,946 (3,607,785) 734,378
 Other receivable
 and prepaid expenses (4,099,356) (143,252) 299,071
 Advance to suppliers (11,484,067) (1,826,306) (4,129,702)
 Inventory (4,098,099) (1,791,200) (460,985)
 Due from related party (245,852) (37,756) (528,426)
 Advance to shareholders -- -- --
 Increase (decrease) in
 current liabilities:
 Accounts payable (1,889,778) 1,226,872 1,040,244
 Advance from customers 87,896 (83,033) (1,456,698)
 Taxes payable (643,780) 752,253 (56,980)
 Other payables and
 accrued expenses 2,811,389 53,803 130,706
 Net cash provided by (used in)
 operating activities (5,108,303) 20,548 (221,444)

 CASH FLOWS FROM INVESTING
 ACTIVITIES:
 Restricted cash for
 investing activity (200,000) -- --
 Sale of investment -- 37,175 --
 Acquisition of property
 and equipment (6,809,173) (412,717) (19,659)
 Construction in progress -- (515,742) --
 Net cash provided by
 (used in) investing
 activities (7,009,173) (891,284) (19,659)

 CASH FLOWS FROM FINANCING
 ACTIVITIES:
 Repayment from / (Advance
 to) shareholder 22,617 (738) (12,790)
 Repayment of short term
 loan (1,577,744) -- --
 Proceeds from short term
 loan 269,531 1,019,231 --
 Repayment of long term
 notes payable (4,235) -- (21,800)
 Proceeds from long term
 notes payable -- 89,697 --
 Issuance of preferred
 stock 9,774,993 -- --

 Capital contribution 3,905,724 -- --
 Notes payable - trade -- (743,494) 743,494
 Notes payable -
 related party -- 290,726 (713,912)
 Restricted cash 657,811 225,977 (14,791)
 Net cash provided by
 (used in) financing
 activities 13,048,697 881,399 (19,799)

 NET INCREASE (DECREASE) IN
 CASH AND CASH EQUIVALENTS 931,221 10,663 (260,902)
 EFFECT OF EXCHANGE RATE CHANGE
 ON CASH AND CASH EQUIVALENTS (180,293) 464,099 128,033
 CASH AND CASH EQUIVALENTS,
 BEGINNING OF YEAR 631,443 156,681 289,550
 CASH AND CASH EQUIVALENTS, END
 OF YEAR $1,382,371 $ 631,443 $ 156,681
 Supplemental Cash flow
 data:
 Income tax paid $ -- $ -- $ --
 Interest paid $ 137,463 $ 108,423 $ 40,016




 CHINA BIO ENERGY HOLDING GROUP CO., LTD. AND ITS SUBSIDIARIES
 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

 Preferred stock
 Additional
 paid in
 Shares Amount Shares Amount capital

 Balance at December
 31, 2004 -- $ -- 23,954,545 $2,395 $2,533,837

 Net income for the
 year -- -- -- -- --

 Transfer to
 statutory
 reserves -- -- -- -- --

 Foreign currency
 translation gain -- -- -- -- --

 Balance at December
 31, 2005 -- -- 23,954,545 2,395 2,533,837

 Net income for the
 year -- -- -- -- --

 Transfer to
 statutory
 reserves -- -- -- -- --

 Foreign currency
 translation gain -- -- -- -- --

 Balance at December
 31, 2006 -- -- 23,954,545 2,395 2,533,837

 Capital
 contribution -- -- -- -- 3,905,724

 Recapitalization on
 reverse
 acquisition -- -- 1,500,000 150 -150

 Shares issued for
 cash 1,000,000 1,000 -- -- 13,172,527

 Net income for the
 year -- -- -- -- --

 Transfer to
 statutory
 reserves -- -- -- -- --

 Foreign currency
 translation gain -- -- -- -- --

 Balance at
 December 31,
 2007 1,000,000 $1,000 25,454,545 $2,545 $19,611,938



 Common stock
 Other Total
 Statutory comprehensive Retained stockholders'
 reserves income earnings equity

 Balance at December
 31, 2004 $130,317 $32,040 $1,464,408 $4,162,997

 Net income for the
 year -- -- 4,141,087 4,141,087

 Transfer to
 statutory reserves 445,699 -- -445,699 --

 Foreign currency
 translation gain -- 128,667 -- 128,667

 Balance at December
 31, 2005 576,016 160,707 5,159,796 8,432,751

 Net income for the
 year -- -- 5,343,579 5,343,579

 Transfer to
 statutory
 reserves 534,358 -- -534,358 --

 Foreign currency
 translation gain -- 464,099 -- 464,099

 Balance at December
 31, 2006 1,110,374 624,806 9,969,017 14,240,429

 Capital contribution -- -- -- 3,905,724

 Recapitalization on
 reverse acquisition -- -- -- --

 Shares issued for
 cash -- -- -3,398,534 9,774,993

 Net income for the
 year -- -- 8,579,565 8,579,565

 Transfer to
 statutory
 reserves 940,656 -- -940,656 --

 Foreign currency
 translation gain -- 1,694,926 -- 1,694,926

 Balance at
 December 31,
 2007 $2,051,030 $2,319,732 $14,209,392 $38,195,637




 For more information, please contact:

 US Contact:
 Mary Xia/Lin Li
 Tel: +1-732-230-3148

 Asia Contact:
 Dan Joseph
 ICR, Inc.
 Tel: +86-21-6122-1077

 Gaihong Li
 China Bio Energy Holdings
 Tel: +86-29-8320-4383



CONTACT: Gaihong Li of China Bio Energy Holdings, +86-29-8320-4383, or Mary Xia or Lin Li of China Bio Energy, +1-732-230-3148; or Dan Joseph of ICR, Inc., +86-21-6122-1077, for CBEH
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