China Natural Gas Announces Acquisition of Three Filling Stations

China Natural Gas, Inc., one of the leading providers of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi’an, China, announced today that it has acquired three CNG/gasoline filling stations located in Xi’an City, Shaanxi Province, China. The filling stations have the necessary government permits to operate and are now selling natural gas and gasoline for CNG/gasoline powered vehicles. Today’s announcement brings the Company’s total revenue generating filling stations to 35.

“We are very pleased to share this announcement with our investors. Like our existing stations in Xi’an city, these three new filling stations are in advantageous locations and can provide superior, quality service to our customers. We believe this achievement speaks to our continuing efforts to solidify our leading position in Xi’an, Shaanxi province. We are very confident in our ability to continue to capitalize on the growing demand for natural gas from vehicle owners,” stated Mr. Qinan Ji, CEO and Chairman of the Board of China Natural Gas, Inc.

China Natural Gas, Inc., (”CHNG”), is the first China-based natural gas retailing company publicly traded in the U.S. It currently owns and operates a network of CNG retail filling stations as well as a 120 kilometer long compressed natural gas pipeline in Xi’an, China. Xi’an is a fast growing Chinese city supported by a population of approximately 8.5 million and is the “gateway” to the broad Western regions of China. CHNG has three business segments: retail natural gas at company-owned filling stations, end user delivery of natural gas services to residential, commercial and industrial customers, and conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. Currently it is estimated that there are 5,000 buses and 20,000 taxis using CNG in Xi’an.