News Release
12 Nov 2007

Everbright International Acquires Waste Water Treatment Project in Boxing County Expands Environmental Protection Business in Shandong Province

China Everbright International Limited ("Everbright International" or the "Company") (SEHK stock code: 0257) will acquire a waste water treatment plant in Boxing County, Shangdong Province by way of TOT (transfer – operate – transfer) and will undergo further upgrade project of the plant.("Boxing Project").

On 9 November 2007, Everbright International signed a "Concession Right Agreement", an "Assets Transfer Agreement" and a "Waste Water Treatment Service Agreement" with the People's Government of Boxing County, Shandong Province("Boxing Municipal Government") and the Boxing County State-owned Assets Administrative Bureau in relation to the Boxing Project. The Company also signed a "Cooperation Framework Agreement" with the Boxing Municipal Government, wherein the two parties agreed to continue talks on phase II expansion, construction of pipe network and facilities of recycling water, etc. of the waste water treatment project.

Construction of the Boxing Project in two phases began in 2001. With a designed processing capacity of 60,000 tonnes per day, it is the first waste water treatment plant in Shandong Province to adopt the BOT model. The first phase of the plant, with daily processing capacity of 30,000 tonnes, commenced operation on 30 June 2003.

Everbright International will set up a project company in Boxing County, which will acquire phase one of the Boxing Project via the TOT format commanding an investment of approximately RMB40 million. The Company will continue to negotiate with the Boxing Municipal Government about expansion of phase two of the project involving construction of pipe network and facilities of recycling water, etc. at an estimated total investment of RMB70-80 million.

Boxing County neighbours Zibo City and has abundant natural resources and well-established infrastructure. It has a total area of 900.7 sq. km. and a population of about 478,000. The waste water treatment charge of Phase one of the Boxing Project is RMB0.75 per tonne of waste water. It will bring in profit to the Company immediately after handover is completed in January 2008. As for the upgrade project, construction will begin in 2008 and is expected to be completed by the end of 2008. By then, it will be able to treat water in compliant with the National Grade 1B Standard and be able to raise treatment charge to RMB0.9 per tonne.

Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, concluded, "This is another waste water treatment project we are going secured in Shandong Province after the Qingdao, Jinan, Zibo and Zhoucun projects. This proves that the "Everbright Environmental" brand has gained a foothold in Shandong Province. We will continue to expand our market share in the province as well as strengthen our leadership in the environmental protection market."