Sinoenergy Corporation Provides Updated Earnings Guidance for Fiscal Years 2008 and 2009

    BEIJING, July 15 /Xinhua-EMWNews-FirstCall/ -- Sinoenergy

Corporation (OTC Bulletin Board: SINE) (''Sinoenergy'' or the ''Company''),

a manufacturer of compressed natural gas (CNG) vehicle and gas station

equipment and a designer, developer and operator of retail CNG filling

stations in the People's Republic of China, today provided updated net

income guidance for fiscal years 2008 and 2009.



    Sinoenergy expects net income for fiscal year 2008, ending September

30, 2008, to be $10 million - $12 million, and net income for fiscal year

2009, ending September 30, 2009, to be $18 million - $20 million. The high

ends of these estimates mean a year-on-year net income increase of about

102.0% from fiscal year 2007 to 2008, and about 66.7% from fiscal year 2008

to 2009.



    Following the recent 1-for-2 reverse stock split of the Company's

common stock on July 9, 2008, the total number of outstanding common shares

became 15,709,033. Basic and diluted Earnings Per Share (EPS) for fiscal

year 2008 are expected to be from $0.64 to $0.76 and $0.55 to $0.60

respectively. Looking forward to fiscal year 2009, basic and diluted EPS

are expected to be from $1.15 to $1.27 and $0.95 to $1.00.



    ''As reflected by our updated guidance, we remain confident that

Sinoenergy will deliver very strong growth in both net income and earnings

per share during fiscal years 2008 and 2009. During the first six months of

fiscal year 2008, our year-on-year net income grew by 252% to $5.2 million,

primarily because of the excellent performance of our manufacturing

business, and we are confident that this strong growth trend will be

sustained in the second half of fiscal year 2008,'' said Mr. Bo Huang, CEO

of Sinoenergy.



    ''Although development of our retail CNG filling station business

lagged behind our original schedule because of the complexity of local

government approval processes, we are encouraged by our recently announced

new station openings and believe that increased gasoline prices will result

in more support for opening retail CNG filling stations from local

government authorities. We believe our retail CNG filling station business

will make a significant financial contribution to our Company throughout

fiscal year 2009.''

    About Sinoenergy



    Sinoenergy is a manufacturer of compressed natural gas (CNG) vehicle

and gas station equipment as well as a developer and operator of retail CNG

stations in China. In addition to its CNG related products, the Company

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.



    Safe Harbor Statement



    This announcement contains forward-looking statements within the

meaning of the safe harbor provisions of the Private Securities Litigation

Reform Act of 1995. All statements other than statements of historical fact

in this announcement are forward-looking statements, including but not

limited to, future changes in the wholesale and retail price for CNG for

vehicles in China; changes in policy by the national, provincial and

municipal government of the PRC regarding CNG prices, the CNG vehicle

industry, the construction and operation of retail CNG filling stations and

related issues; the Company's ability to raise additional capital to

finance the Company's activities; the effectiveness, profitability, and the

marketability of its products; the future trading of the common stock of

the Company; the ability of the Company to operate as a public company; the

period of time for which its current liquidity will enable the Company to

fund its operations; the Company's ability to protect its proprietary

information; general economic and business conditions; the volatility of

the Company's operating results and financial condition; the Company's

ability to attract or retain qualified senior management personnel and

research and development staff; and other risks detailed in the Company's

filings with the Securities and Exchange Commission. These forward-looking

statements involve known and unknown risks and uncertainties and are based

on current expectations, assumptions, estimates and projections about the

companies and the industry. The Company undertakes no obligation to update

forward-looking statements to reflect subsequent occurring events or

circumstances, or to changes in its expectations, except as may be required

by law. Although the Company believes that the expectations expressed in

these forward looking statements are reasonable, they cannot assure you

that their expectations will turn out to be correct, and investors are

cautioned that actual results may differ materially from the anticipated

results.






    For more information, please contact:



    Sinoenergy Corporation

     Mr. Anlin Xiong, Vice President

     Tel:   +86-10-8493-2965 x860

     Email: [email protected]

     Web:   http://www.sinoenergycorporation.com



    CCG Elite Investor Relations Inc.

     Mr. Crocker Coulson, President

     Tel:   +1-646-213-1915 (New York)

     Email: [email protected]

     Web:   http://www.ccgir.com