Sinoenergy Corp., Granted Land Title Deed in Qingdao

Sinoenergy Corporation, a manufacturer of compressed natural gas (CNG) filling station equipment and car/bus conversion kits in China, as well as an emerging developer and operator of natural gas filling stations in China, announced that Sinogas, the wholly-owned subsidiary of Sinoenergy, was granted the land use rights for the 60,860 square meter (approximately 653,000 square foot) plot of land on which Sinogas' facilities are located. The land is located in the central part of Qingdao City, Shandong Province, China. The cost of the land use right was approximately US$18.4 million, of which US$15 million has been paid by the Company as of today.

Located in the east coast of China, Qingdao City is a scenic tourist destination, where the sailing competition of the 2008 Beijing Olympic Games will be held. The land has been divided into two parcels by a main road of the Si'fang District of Qingdao City, where Sinoenergy's manufacturing plants are located.

The government has granted Sinoenergy transferable land use rights for a 50-year term with an option to renew. In China, there is no private ownership of land; rather, the government grants a transferable land use right.

"The land prices in Qingdao have risen dramatically in the past few years," said Mr. Deng Tianzhou, Chairman of Sinoenergy Corporation. "This favorable market environment provides Sinoenergy with several attractive alternatives. We are evaluating the best use of this asset."

About Sinoenergy

Sinoenergy is a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as a designer, developer and builder of CNG stations in China. In addition to its CNG related products, the Company also manufactures a wide variety of pressure containers for use in different industries, including the design and manufacture of various types of pressure containers in the petroleum and chemical industries, the metallurgy and electricity generation industries and the food and brewery industries.