China New Energy Retains HC International as Investor Relations Advisor

TIANJIN, China, Jan. 31, 2011 /PRNewswire-Asia-FirstCall/ -- China New Energy Group Company (OTC Bulletin Board: CNER) ("China New Energy" or the "Company"), a natural gas network developer and distributor of natural gas to residential, industrial, and commercial users in small and medium sized cities in China, today announced it has retained HC International, Inc. ("HC International") as its strategic investor relations advisor to assist China New Energy with articulating its value proposition to investors and broadening its presence in the financial markets.

Matthew Hayden, Scott Powell, and the HC International team will be advising the Company in all facets of corporate and financial communications.

"As a rapidly growing U.S. listed company based in China and after careful review, we have selected HC International to provide us with a comprehensive investor relations and corporate communications strategy," said Mr. Yangkan Chong, Chief Executive Officer of China New Energy. "We are confident that the well respected team at HC International will provide strong support in conveying our business model, growth strategy, competitive advantages, and value proposition to shareholders and the investment community at large."

"China New Energy's vertically integrated business model positions the Company to significantly benefit from the sustained growth in the natural gas market in China," said Matthew Hayden, President of HC International, Inc. "The recent acquisition of Tianjin Dadi Friendship Co. Ltd. is a key component of that growth strategy, and complements the existing business via an increased presence in the fast growing second and third tier cities in China that are located in close proximity to economically developed areas with sufficient natural gas resources. We look forward to working with the senior management team to implement an investor communications and marketing strategy which will expand the Company's coverage and shareholder base."

About China New Energy Group Company

China New Energy Group Company ("China New Energy" or the "Company") is a vertically integrated natural gas company engaged in the development of natural gas distribution networks, and the distribution of natural gas to residential, industrial, and commercial users in small and medium sized cities in China. The Company generates revenues primarily from the connection fees it charges its customers for interconnecting to pipelines in its natural gas distribution networks, and fees for natural gas usage. For more information, please visit http://www.cnegc.com.

Safe Harbor Statement

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to access natural gas for distribution, and ability to identify and develop operational locations under favorable terms, changes in natural gas pricing mechanism imposed by the Chinese government, changes in the regulatory environment and future national or regional economic and competitive conditions, and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. 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 China New Energy Group Company