SOURCE: Sancon Resources Recovery Inc

October 02, 2007 15:40 ET

Sancon Awarded Waste Management License From the Chinese Government

SHANGHAI, CHINA--(Marketwire - October 2, 2007) - Sancon Resources Recovery Inc. (OTCBB: SRRY), a growing waste management and recycling company with operations in China and Australia, announced today its newly formed China division, Sancon Shanghai, has successfully obtained the first waste management and recycling license issued by the Chinese government in Shanghai to a foreign company. Sancon reported earlier that it has recently expanded its Chinese operations and has established several waste recycling facilities in the cities of Shanghai, Chengdu, Tianjin and Dongguan. These sites are strategically located to serve customers on a national coverage basis. Sancon plans to establish additional recycling sites in over 20 cities by the end of 2007.

The waste management and recycling license in China is currently only available to Chinese local companies, therefore no presence of any other foreign companies in the sector. Sancon's lobbying efforts for the past year have resulted in the success of obtaining this license, which is the first of any foreign company and it will ensure the legitimacy and success of our future expansions in China. Sancon has evidently identified the growing demand for quality waste management services in an economy that is growing at record speed with strong consumer spending for 1.3 billion consumers.

Sancon's recycling facilities will initially focus on processing and recycling consumer product packaging materials into reusable raw materials, and then expand into other areas of waste management. Sancon's recycling solution will enable the effectively collection and secure processing of packaging wastes on behalf of its customers. The secured destruction of packaging materials prevents the potential breach of trade secrets and production of counterfeits. The recycling of waste materials not only is environmentally friendly, but also impacts positively on Sancon customers' sales growth and solidifies responsible corporate behavior.

"Sancon has a natural competitive advantage in the Chinese market as we have accumulated many years of experience from developed markets and most of our management teams are China born and educated overseas. Sancon can now offer our quality waste management solutions to a large number of multinational companies operating in China due to the license, and will ultimately expand our services to local Chinese companies," comments Mr. Jack Chen, CEO of Sancon. "We will invest continuously in building additional facilities, equipment, staffing and management in anticipation of the market growth. China presents many promising opportunities to a company like Sancon, as more and more companies increasingly turn their attention to environmental initiatives."

About Sancon Resources Recovery Inc.

Sancon Resources Recovery Inc. (OTCBB: SRRY) specializes in the collection, processing, and selling of industrial and commercial solid wastes such as plastic, paper, cardboard, and glass. The recycled materials are re-used by Sancon's manufacturing customers in China to make a wide variety of new products that include outdoor furniture, construction materials, building materials, road surface, and various new products. Sancon also trades in recycled plastic wastes originating from the United States, Japan, and various European countries to satisfy the growing demand for recycled materials by manufacturers in China. Sancon operates facilities in China, Australia, and Hong Kong. The use of recycled raw materials is both environmentally friendly and an important method to lower production costs for manufacturers to stay competitive. For more information please visit: www.sanconinc.com.

Forward-looking statements:

The statements made in this press release, which are not historical facts, may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.

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