Euro Tech Holdings Company Limited Updates

HONG KONG, June 4 /Xinhua-PRNewswire-FirstCall/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported that registration of the PACT Asia Pacific Ltd's ("PACT") manufacturing joint venture is underway and is expected to be completed by end of June 2007. The company registration task has taken far too long due to detailed scrutiny by the Chinese authorities and to a larger extent due to the mutual agreement to the withdrawal of one of the minority JV partners, namely Wuxi Tongtian Environmental Engineering Co., Ltd. ("TONT"). The withdrawal of TONT has made way for the inclusion of a new minority partner namely the Italian Company, Ecomacchine S.p.A. ("ECO"). The new share holdings of the JV are PACT will invest US$300,000 and have a 60% controlling interest of the joint venture, whereas ECO and PACT Engineering FZC ("PACTFZC") will each invest US$100,000 to own 20%.

About PACT

PACT is a majority owned subsidiary of Euro Tech.

About ECO

ECO, established in 1976 in Torino, Italy, has many clients in Europe, the Middle East and Africa. ECO is specialized in manufacturing of sludge handling and dewatering equipment.

About PACTFZC

PACTFZC, based in Dubai, is a Middle Eastern water treatment company.

As sludge dewatering and wastewater recycling are practical measures to lower cost of manufacturing and in the process reducing pollution and improving the environment. The new JV management has decided to concentrate on manufacturing of the following two products as standardized units. There will be less emphasis on custom-built equipment in order to reduce the high cost of engineering overheads. Besides cost reduction standardization substantially reduces technical risk.

Belt filter presses

The "Belt Filter Press" converts wet sludges to dry ones thus reducing disposal volume to a fraction of the original, hence substantial saving in disposal costs. The new JV will use the existing technology of ECO in manufacturing of Belt Filter Presses.

MBR (Membrane Biological Reactor)

The "MBR" uses an advanced membrane technology that treats biological wastes to a quality level which in many industries is good enough for reuse or low-cost disposal to sewers. PACT will produce state-of-the-art packaged sewage treatment plants. These packaged sewage plants have smaller area than that of the conventional packages and the treated effluent is treated to a level that it can be recycled or re-used.

T C Leung, Chairman and CEO of the Company, commented " We are excited about the new products and capability of the new JV in water treatment solution business. We think this new activity together with our recent acquisition of 20% stake in Zhejiang Tianlan Desulfurization and Dust-Removal Co. Ltd. ("BlueSky"), a company in air pollution solution business will definitely help combat the drop of income and revenue since early 2005 due to rapid drop of distribution business as a result of losing a number of exclusive agreements with our key suppliers. These suppliers now either sell directly into China market or open the market for other distributors to sell into China. The inevitable threat of falling income and revenue from distribution business has negative impact on the result of 2006 and this will continue and will only be reduced and under control when the contributions from our new acquisitions and activities are materialized and realized in coming months."

Certain statements in this news release regarding the Company's expectations, estimates, present view of circumstances or events, and statements containing words such as estimates, anticipates, intends, or expects, or words of similar import, constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements indicate uncertainty and the Company can give no assurance with regard to actual outcomes. Specific risk factors may include, without limitation, having the Company's offices and operations situated in Hong Kong and China, doing business in China, competing with Chinese manufactured products, competing with the Company's own suppliers, dependence on vendors, and lack of long term written agreements with suppliers and customers, development of new products, entering new markets, possible downturns in business conditions, increased competition, loss of significant customers, availability of qualified personnel, negotiating definitive agreements, new marketing efforts and the timely development of resources. See the "Risk Factor" discussions in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F for its fiscal year ended December 31, 2005.

CONTACT:

Euro Tech Holdings Company Limited, Hong Kong

T.C. Leung, Chairman and CEO, or Jerry Wong, CFO

Tel: +852-2814-0311

Fax: +852-2873-4887

Website: http://www.euro-tech.com