SOURCE: Sancon Resources Recovery Inc.

November 19, 2007 08:00 ET

Sancon Reports Profitable Third Quarter in 2007

SHANGHAI, CHINA--(Marketwire - November 19, 2007) - Sancon Resources Recovery Inc. (OTCBB: SRRY), a fast growing environmental service and industrial waste management company with operations in China and Australia, today announced it reported operating results for the quarter ending September 30, 2007.

Highlights of the financial results ending September 30, 2007:

--  2007 year to date revenues increased by 122% to $4.168 million from
    $1.875 million during the same period in 2006.
--  2007 year to date gross profit increased by 129% to $0.78 million in
    2007 from $0.34 million during the same period in 2006.
--  2007 Q3 revenues decreased by 20% to $1.27 million compared to $1.59
    million in the same period in 2006.
--  2007 Q3 gross profit increased by 96% to $0.415 million compared to
    $0.212 million in the same period in 2006.
--  2007 Q3 net profit increased by 43% to $76,166 compared to $53,098 in
    the same period in 2006.
--  Deployment of 4 new recycling plants completed in China cities of
    Shanghai, Tianjing, Dongguan and Chendu.
--  Sancon began to consolidate the financial results of its China operation
    from the third quarter in 2007.
    

The strong increase in Sancon's profitability is largely driven by the successful launch of the new China operation. Sancon has diverted some of its efforts from the waste material trading business to focus on the launch of its China business in the third quarter. The reduced effort on the material trading business has resulted in lower sales in the third quarter. The new business developed in china has much higher profit margins than the waste materials trading business.

Sancon reported earlier that it has won a waste management license from the Chinese government for its China operation. Sancon China has recently being awarded with ISO 9001:2000 quality management and ISO 14001:2004 environmental management system certifications.

"We're pleased to report a profitable quarter, along with Sancon's China operation deployment progress, which was the main driver behind our growth," stated CEO of Sancon, Mr. Jack Chen. "Sancon's China team has worked hard to expand our operation into major economic regions of Yangtze River delta, Pearl River delta, Beijing and central China. As a result, very few environmental service companies in China can now challenge us in both service coverage and quality of service offerings. To coincide with the China operation launch, Sancon China has already signed a multimillion dollar nationwide contract with a leading global liquor company. We expect to serve many more clients in China."

Sancon is one of the early movers in China's environmental service industry. While its targeted customers in China are mostly the fortune 1000 international companies, Sancon's continued expansion will align its coverage around these potential clients' needs in nationwide environmental services. The expansion of China operation in Q3 2007 included the successful completion in deploying 4 strategically positioned waste management plants in China's most affluent economic regions. Sancon expects to deploy more plants in the coming months to further enlarge its service coverage.

About Sancon Resources Recovery

Sancon Resources Recovery Inc. (OTCBB: SRRY) is an environmental service and waste management company that operates recycling facilities in China and Australia. Sancon specializes in the collection and recovery 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 including outdoor furniture, construction materials, building materials, road surface, and various new products. Sancon's China operation is licensed by the Chinese government for waste management services, and is certified with ISO 9001 and ISO14001 standards. 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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