China Solar & Clean Energy Solutions, Inc. Announces Record Fourth Quarter

NEW YORK and BEIJING, April 11 /Xinhua-PRNewswire-FirstCall/ -- China Solar & Clean Energy Solutions, Inc. (OTC Bulletin Board: CSOL), a premier seller and distributor of solar water heaters, renewable energy solutions, and space heating devices in the People's Republic of China (the "PRC"), today announced its financial results for the fourth quarter and fiscal
year ended December 31, 2007 (''FY07'').

Revenues for fourth quarter 2007 increased approximately 119% to approximately $12 million, from $5.5 million in the prior year's quarter. The increase was driven primarily by its recent acquisition of Tianjin Huaneng Group Energy Equipment Co., Ltd. (Tianjin), which contributed $5.8 million in revenue for the fourth quarter of 2007 compared to none for the
same period in 2006 and $3.8 million for the third quarter in 2007. Revenues of the Company's core business generated from its Bazhou facility in the quarter totaled approximately $6.2 million, a slight increase over the prior year's fourth quarter.

The Company's gross profit in the fourth quarter of 2007 increased by 158% to approximately $3.1 million compared to the year ago period. Of the $3.1 million, $1.2 million was contributed by the Bazhou facility, representing 22% organic growth. Tianjin Huaneng contributed $1.9 million
in the fourth quarter and was not a component of the Company in the fourth quarter 2006. Revenues emanating from our Bazhou facility had gross margins of 21%, while Tianjin had 28%, and overall gross margins were 22.39%, an increase from 21.7% reported in 2006 which benefited from integration of Tianjin and the operational advantages it brought to Bazhou.

Operating expenses in the fourth quarter increased 66% to $1.7 million as compared to $1.0 million in the prior year period, representing operating margins of 14.4% and 18.9% respectively. This increase in expenses was primarily a result of higher general and administrative expenses associated with the integration of the Tianjing Huaneng acquisition. As a percentage of sales, operating expenses decreased to 4.7% from 4.9%.

Net income in the fourth quarter increased 479% to $1.1 million, or 9% of revenue, up from $0.2 million, or 3.5% of revenue last year. Excluding the Tianjing Huaneng facility, net income and net margins were $1.02 million and 16% respectively. The higher net income was due primarily to substantially higher revenues. Diluted earnings per share (EPS) in the fourth quarter of 2007 were $0.11 based on 9.9 million fully diluted shares, versus $0.03 on 6.96 million fully diluted shares in the prior year period.

Mr. Deli Du, President and Chief Executive Officer of China Solar commented, "We are encouraged by the successful consolidation of Tianjin Huaneng with our Bazhou facility which will enable us to become one of the leading integrated solution providers of clean and renewable energy to industrial and residential customers in China. During the fourth quarter, we complemented our core solar water heater business with strong growth from Tianjin Huaneng, which enabled us to achieve 72.1% revenue growth. As anticipated, we experienced margin pressure in our core solar water heater products which was offset by higher margins through Tianjin Huaneng's proprietary energy saving boilers and environmental protection equipment
which helped to improve our overall profitability in 2007. Tianjin also integrated our solar water heaters into its heat recovery projects to further increase waste heat recovery while we began to incorporate Tianjin's technology into our product portfolio. We believe we are well positioned as a leading player in the clean energy industry in China and will grow the business both organically and through complementary acquisitions, which collectively will enable us to capitalize on our
technology and engineering expertise, marketing and branding strength, to deliver a truly integrated clean energy solutions company.