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China Clean Energy Provides Business Update
Date:7/7/2009

development efforts. In the second quarter, two new clients started to place orders and we look forward to further enhancing our sales force to support the ramp up of our new plant."

China Clean Energy management continues to closely evaluate the developments relating to the recently announced consumption tax on diesel products in the Fujian Province, where the Company has operating facilities. Currently, the local tax authority has recommended that biodiesel be exempt from such tax, but a final decision is pending PRC government approval. Once a decision is announced by the PRC government, the Company will evaluate any potential impact on its biodiesel business and make the necessary adjustments to its business model.

China Clean Energy also wishes to reiterate that the implementation in Fujian of the Value-Added-Tax ("VAT") refund for biodiesel made from waste vegetable oil has not been finalized. The Company is monitoring the situation and will proceed to take advantage of this incentive once the provincial government provides more clarity.

About China Clean Energy:

China Clean Energy, through its wholly-owned subsidiaries, Fujian Zhongde Technology Co., Ltd. and Fujian Zhongde Energy Co., Ltd, is engaged in the development, manufacturing, and distribution of biodiesel and specialty chemical products made from renewable resources. For additional information please visit: http://www.chinacleanenergyinc.com .

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company
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SOURCE China Clean Energy Inc.
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