Inauguration of Yixing waste-to-energy plant

The Company's Yixing waste-to-energy plant ("Yixing Project") was inaugurated on 26 June 2007 in the presence of Mr. Xu Xuejun, Deputy Head of Jiangsu Provincial Department of Construction, Mr. Jiang Hongliang, Secretary of Yixing CPC Committee, and other local government officials from different departments. In his opening address, Mr. Chen Xiaoping, Chief Executive Officer of China Everbright International, thanked the different government departments and officials for supporting the project. He also called on the staff of the Company to continue to work hard and cooperate with the authorities in Yixing on environmental protection and other pubic amenity areas. Mr. Zang Qiutao, General Manager of China Everbright Holdings Company Limited, also emphasized the importance of environmental protection in ensuring sustainable development of the Chinese economy and community. He added that the waste-to-energy project was a part of the Company's investment strategy for environmental protection business in Jiangsu and marked only the beginning its investment in Yixing. The Company will continue to complement the environmental protection work in Jiangsu.

Yixing City in Wuxi, Jiangsu province is one of the top ranked county-level cities with strongest economies. The Yixing Project is the second waste-to-energy project of the Company with the first being the Suzhou waste-to-energy plant. The total investment of the project is RMB238.3 million and the Company has exclusive right to operate the plant for 25 years. Occupying an area of 65,985 sq. m., the Yixing Project is equipped with two incinerators with daily processing capacity of 250 tonnes each and a 9,000 kilowatt turbine generator. Capable of treating up to 500 tonnes of waste per day and generating on average no less than 44.5 million kilowatt-hour of electricity per year, the plant is expected to begin contributing operating income to the Company in the second half of the year.

The Yixing Project is the first waste-to-energy project equipped with China-made incinerators that employ proven advanced overseas technology. The incinerator is divided into two burning zones and is able to burn waste completely to ensure electricity is generated most efficiently. Moreover, the project boasts gas emission level meeting or higher than the national standard. Smoke and dust emission from the plant also complies with EU I standard and dioxin emission meets EU II standard.

It had only taken the Group 20 months since September 2005 to complete construction of the plant and had it up and running. The inauguration of the plant marked the expansion of coverage of the Group's waster-to-energy business and boosted the "Everbright Environment" brand. It will benefit development of the Group's waste-to-energy and other environmental protection businesses in developed regions and enable it to strengthen its leadership in the environmental protection industry.