Sino Clean Energy to Control 60% Stake in Foshan Nan Hai CWSF Co., Ltd through Acquisition

XI'AN, China, July 18, 2011 /PRNewswire-Asia-FirstCall/ -- Sino Clean Energy Inc. ("Sino Clean Energy" or the "Company") (Nasdaq: SCEI), a leading producer and distributor of coal-water slurry fuel ("CWSF") in China, today announced that it has entered into a non-binding, preliminary agreement to acquire 100% stake in Crown Energy Limited, an investment company registered in Hong Kong, which as its sole business holds a 60% stake in Foshan Nan Hai CWSF Co., Ltd. ("Foshan Nan Hai"). If after due diligence the Company decides to complete the acquisition, Sino Clean Energy will control a 60% stake in Foshan Nan Hai, a producer and distributor of CWSF in China.

Founded in 2003, Foshan Nan Hai has an installed capacity of 1.2 million metric tons and reserved capacity of 1 million metric tons and is widely recognized as the largest producer of CWSF in China. Located in Foshan City, Guangdong Province, where the local government promotes CWSF for energy conservation and carbon emissions reduction, Foshan Nan Hai supplies to the largest CWSF boiler in China and ships its CWSF output from its own 3,000-ton barge dock.

"We believe that Foshan Nan Hai is a significant producer of CWSF producer in China and that the local market it serves shows strong growth potential. The Company is fortunate to have the opportunity to consider the investment, which is in line with our business development strategy," commented Mr. Baowen Ren, Chairman and CEO of Sino Clean Energy. "Based on the results of our investigations, the Company's production capacity in Guangdong Province could be strengthened if we elect to complete this acquisition."

About Sino Clean Energy

The Company believes that Sino Clean Energy is the third largest producer of coal-water slurry fuel ("CWSF") by sales in China, according to data provided in Frost & Sullivan's 2010 Chinese CWSF market report. A leader in developing CWSF as a cleaner alternative to burning coal aggregate in heating, industrial and power generation for residential and industrial applications, the Company has seven production lines located in Shaanxi, Liaoning, and Guangdong provinces. For more information about Sino Clean Energy, please visit http://www.sinocei.net.

About Foshan Nan Hai

Foshan Nan Hai is a producer of coal-water slurry fuel ("CWSF") in China. Founded in 2003, the Company has current capacity of 1.5 million metric tons. For more information about Foshan Nan Hai, please visit http://www.fsnanjie.com/index.asp.

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, release and sales of new products 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 Sino Clean Energy Inc.