Sinoenergy Corporation Receives Approval to Build Four CNG Filling Stations in Wuhan

WUHAN, China, March 5 /Xinhua-PRNewswire-FirstCall/ -- Sinoenergy Corporation (OTC Bulletin Board: SNEN), ("Company"), a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as designer, developer and builder of CNG stations in China announced today that Wuhan Sinoenergy Gas Co. (Wuhan Sinoenergy), its 90% owned subsidiary has received approval from the Wuhan municipal government to build four of the Company's natural gas filling stations in the Wuhan government's first natural gas filling station construction program in 2007. Wuhan Sinoenergy is expected to begin its CNG station operations before September of 2007. The estimated investment requirement for the four stations will be approximately

US$3 million.

With an area of 3,269 square miles and a population of 8 million, Wuhan is the largest city in central China. It currently has more than 5,000 buses and approximately 20,000 taxis. To generate the same amount of energy, the cost of using CNG is only 60% that of gasoline. As a result, the number of CNG automobiles is increasing rapidly even without any government subsidy. The municipal government also plans to authorize the construction of 69 CNG gas stations by 2010.

"We are very pleased to be able to announce the approval of our project to build four CNG filling stations in Wuhan. This authorization represents an important step towards our goal to become a major operator of CNG stations in China," said Mr. Deng Tianzhou, Chairman of Sinoenergy Corporation. "Sinoenergy is well positioned to play a leading role in developing the clean burning CNG-powered vehicle market in China, and to support national goals of reducing energy dependence on petroleum and improving air quality in increasingly congested urban centers."

The approval gives Sinoenergy, through its Wuhan Sinoenergy subsidiary, municipal government approval to design, build and operate CNG stations with a non-exclusive concession right of 20 years. Having secured natural gas supply from the main pipeline operated by PetroChina and market access from Wuhan municipal government, the Company is seeking approval to build two CNG mother stations and 20 CNG sub-stations over the next two years.

About Sinoenergy:

Sinoenergy is a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as a designer, developer and builder of CNG stations in China. In addition to its CNG related products, the Company also manufactures a wide variety of pressure containers for use in different industries, including the design and manufacture of various types of pressure containers in the petroleum and chemical industries, the metallurgy and electricity generation industries and the food and brewery industries.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

For more information, please contact:

Sinoenergy Corporation

Ms. Laby Wu, CFO

Tel: +86-10-8492-8149

CCG Elite Investor Relations Inc.

Mr. Crocker Coulson, President

Tel: +1-646-213-1915 (New York)

Email: crocker.coulson@ccgir.com