The Chairman of Interchina Mr. Zhang Yang said, “Our Company is dedicated to being a total environmental water solution provider and places its business in three focused development areas including North East, North Central and North West of China. After acquisition completion of the A-share company Black Dragon, it will provide a two-pronged financing platform for our Company, increasing our Company’s business scale.”

Interchina acquires 70.21% stake in an A-share company listed on the Shanghai Stock Exchange namely Heilongjiang Black Dragon Company Limited (“Black Dragon”)(600187) to expand into water business in the PRC and as an attempt to seek for more investment opportunities. The plan was approved as ordinary resolution in the Extraordinary General Meeting held on 25 February 2008. The acquisition of Black Dragon has entered final stage as regulatory authorities of PRC had held hearing of the resumption proposal of Black Dragon. It is anticipated that the trading of Black Dragon’s A shares will be resumed shortly.

About Interchina Holdings Company Limited (SEHK Code: 0202)

Interchina Holdings Company Limited is a professional water solution provider. The Group predominantly develops environmental protection and water treatment operation focusing on Chinese features in the PRC. In May 2007, the Group signed an agreement in relation to the acquisition of 70.21% share of Heilongjiang Black Dragon Company Limited, an A-share company listed on the Shanghai Stock Exchange, to further expand the Group’s environmental protection and water treatment operation and create a diversified financing platform.

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