SOURCE: Sancon Resources Recovery Inc.

September 27, 2007 13:44 ET

Sancon Invests in a New China Subsidiary, Sancon Shanghai

SHANGHAI, CHINA--(Marketwire - September 27, 2007) - Sancon Resources Recovery Inc. (OTCBB: SRRY), a growing industrial waste recycling company with operations in China and Australia, announced today it has exercised a conversion right pursuant to the terms of a convertible note into 70% equity interest of Sancon Resource Recovery (Shanghai) Co., Ltd., a newly formed subsidiary located in Shanghai, China.

Sancon announced previously that it has expanded its China operations by investing US$200,000 in setting up several recycling centers around China. The investment was made in the form of a convertible note with face value of US$200,000 issued on June 1, 2007. The convertible note entitles Sancon to 70% ownership of the newly formed China subsidiary, called Sancon Resource Recovery (Shanghai) Co., Ltd. Sancon holds 70% equity interest of Sancon Shanghai through its wholly owned subsidiary, Crossover Solutions Inc. The remaining 30% equity interest is held by the local management team as a reward for the signing of the first multi million dollar customer contract and for setting up of the subsidiary. The newly set up recycling facilities are located in the cities of Shanghai, Chengdu, Tianjin and Dongguan.

Sancon converted the note into 70% equity interest of Sancon Shanghai on August 15, 2007, after Sancon Shanghai reported its first profitable month. Documents for the ownership of the 70% equity interest were completed on September 10, 2007.

About Sancon Resources Recovery Inc.

Sancon Resources Recovery Inc. (OTCBB: SRRY) specializes in the collection, processing, and re-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 other new plastic 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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