ZhongDe Waste Technology AG / Letter of Intent 06.04.2009 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ZhongDe Waste Technology AG signs Letter of Intent on Renewable Energy Projects for Electricity Generation in Jilin, PRC Hamburg, 6 April, 2009 - ZhongDe Waste Technology AG [Ticker ZEF] announced today that ZhongDe Group ('ZhongDe') and Genesis Energy Holdings Limited ('Genesis') have entered into a non-legally binding Letter of Intent with the Jilin Provincial Government on possible investments in building and operating waste incineration and biomass renewable energy projects for electricity generation in Jilin. The indicative amount of the total investment is up to RMB 5 billion over the next 5 years. J.P. Morgan will commit to provide related financing, financial advisory and investment banking services to this long term project. The Letter of Intent has established a platform for long-term and sustainable future collaboration between ZhongDe and the Jilin Provincial Government. It is expected that the initial four waste incineration power plants will be built in the cities of Liaoyuan, Songyuan, Tonghua and Baishan respectively and will be completed in 2011 with a daily refuse handling capacity of 2,300 tonnes in total. The extent of the waste treatment subsidies provided by the government will be determined on the basis of the scale of investment and operating costs involved. Preliminary estimated subsidies will range from RMB 85 to RMB 95 per tonne. Local governments will also provide tax and land use incentives. The Letter of Intent with the Jilin Provincial Government is not legally binding, and at this stage no definite agreement has been reached. ZhongDe and Genesis will conduct feasibility studies and further negotiations on these potential projects. Zefeng Chen, founder and CEO of ZhongDe Waste Technology AG, comments: 'ZhongDe will be responsible for design, procurement, installation and construction of these projects. With this Letter of Intent ZhongDe opens further doors for generating new project business, we are confident that ZhongDe will have a promising future.' Genesis Energy's principal business is the development of oil fields, oil and gas exploitation and extraction, crude oil storage and pipeline transportation of crude oil and natural gas. Furthermore, it includes the construction of operation of municipal natural gas distribution networks and gas refilling stations supplying natural gas and liquefied petroleum gas ('LPG') for vehicle use as well as the sale of LPG in cylinder. The company is listed in the Main Board of the Hongkong Stock Exchange (Ticker 702HK). J.P. Morgan is one of the largest global financial holding groups doing business in more than 50 countries. It has a leading position in the areas of investment banking, financial services, financial matter handling, investment management, private banking business and private equity investment. About ZhongDe Group: ZhongDe Group designs, manufactures and installs pyrolytic, grate and rotary kiln waste incinerators for the disposal of solid municipal, industrial (including hazardous) and medical waste, as well as complete sets of incineration plants with electricity generation. Since 1996, ZhongDe Group has installed approximately 190 waste incinerators in about 13 provinces, and more than 130 waste incinerators in the last three financial years alone. Its waste incinerators are principally constructed for small and midsized Chinese cities in developed areas of the People's Republic of China, as well as for operators of medical disposal centres in the hospital and healthcare industry. ZhongDe Group is one of the leading suppliers of small and midsized solid waste incinerators in China, supplying state-of-the-art products. Sylvia Faber CEO Citigate Dewe Rogerson GmbH Goethestraße 26-28 60313 Frankfurt am Main Tel: 0049-69 90 500-100 Fax: 0049-69 90 500-101 E-Mail: sylvia.faber@citigatedr.de Internet: www.citigatedr.de DGAP 06.04.2009 --------------------------------------------------------------------------- Language: English Issuer: ZhongDe Waste Technology AG Stadthausbrücke 1-3 20355 Hamburg Deutschland Phone: +49 40 37644 745 Fax: +49 40 37644 500 E-mail: cornelia.dieker@zhongdetech.de Internet: www.zhongdetech.de ISIN: DE000ZDWT018 WKN: ZDWT01 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: ZhongDe Waste Technology AG signs Letter of Intent on Renewable Energy Projects for Electricity Generation in Jilin, PRC
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