Sino Clean Energy, Inc. Commences Production of New 300,000-Ton Capacity Facility in Guangdong

XI'AN, China, Jan. 26, 2011 /PRNewswire-Asia-FirstCall/ -- Sino Clean Energy Inc. (Nasdaq: SCEI) ("Sino Clean Energy," or the "Company"), a leading producer and distributor of coal-water slurry fuel ("CWSF") in the People's Republic of China ("China"), today announced that its new CWSF production facility located in Dongguan, Guangdong Province has commenced production on January 4, 2011.

The new 300,000 metric tons (MT) CWSF production facility expands the Company's total annual production capacity to 1,150,000 metric tons. Sino Clean Energy used a portion of the proceeds from its follow on public offering completed in December 2010 to fund this expansion. With strong support from the local government and a large base of industrial customers, Guangdong is the largest consumer of CWSF in China. Sino Clean Energy has signed supply agreements with 4 customers, including Yongchang Paper and Tongyi Group, to deliver a combined almost 200,000 MT of CWSF over the next twelve months.

"This is an exciting and important milestone for our company," started Baowen Ren, Chairman of Sino Clean Energy. "Entering Guangdong, the largest province in China in terms of economic output and CWSF consumption, is a key component of our growth strategy. The Dongguan government is aggressively promoting the use of CWSF and plans to expand consumption to 7 million tons in the next 3 years. We believe that our early entry into this market positions us well to be a beneficiary of this growth."

About Sino Clean Energy

Sino Clean Energy is a U.S. publicly traded company and a China-based producer and distributor of coal-water slurry fuel ("CWSF"). With locations in Shaanxi Province and Liaoning Province, Sino Clean Energy is one of the leading CWSF producers in China. For more information about Sino Clean Energy, please visit http://www.sinocei.net.

Safe Harbor Statement

This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to uncertainties in product demand, the impact of competitive products and pricing, our ability to obtain regulatory approvals, changing economic conditions around the world and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Sino Clean Energy Inc.