DGAP-News: ZhongDe Waste Technology AG signs Letter of Intent on Renewable Energy Projects for Electricity Generation in Jilin, PRC

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.
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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 
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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
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