BEIJING, July 10 /Xinhua-PRNewswire-FirstCall/ -- Sino Gas International Holdings, Inc. (OTC:SGAS) (BULLETIN BOARD: SGAS) ("Sino Gas", the "Company") and its subsidiary Beijing Zhong Ran Wei Ye Gas Co., Ltd ("Beijing Gas") announced the acquisition of Guannan Zhongyuan Natural Gas Co., Ltd. ("Zhongyuan"), a privately held natural gas distribution business in Jiangsu Province of China, on June 20, 2007 for approximately $987,000 in cash. The acquisition includes all the assets, customer relationships and the concession rights for the gas distribution in Guannan County in Jiangsu Province for a period of 30 years. Zhongyuan currently has 3,951 connected households with estimated annual revenues of approximately $197,000 from recurring gas sales. The Company expects to connect additional 3,240 and 4,360 households in Guannan County in 2007 and 2008 respectively. The estimated revenues from connection fees will be $480,500 in 2007 and $646,500 in 2008. In addition, the recurring natural gas supply for the connected households in this region is expected to generate $249,975 and $349,850 in revenues during 2007 and 2008. In addition, Sino Gas announced the continuation of a natural gas connection project for Shanghai Datun Energy Co., Ltd. in Pei County in Jiangsu Province. The second phase of connecting an additional 6,000 household will finalize the project, which began last year, of connecting a total of 18,000 households. The completion of the project in 2007 will bring approximately $1.74 million in revenue from connection fees from 6,000 households and it is expected to generate $37,500 from gas sales to those households in the fourth quarter of 2007. The Company is contracted to supply natural gas for all the connected households for 30 years. "We are very pleased to announce the addition of a new subsidiary and the completion of a major project," commented Mr. Yu-chuan Liu, Chairman, CEO and President of Sino Gas. "These initiatives will help accelerate our growth over the next couple of years and bring us one step closer to our goal of becoming a leading distributor of natural gas in China." About Sino Gas International Holdings, Inc. The Company, through its indirectly wholly-owned subsidiary, Beijing Zhong Ran Wei Ye Gas Co., Ltd. ("Beijing Gas"), and the subsidiaries of Beijing Gas, is a leading developer of natural gas distribution systems in small- and medium-sized cities in China, as well as a distributor of natural gas to residential, commercial and industrial customers in China. The company owns and operates 23 natural gas distribution systems serving approximately 63,000 residential and six commercial and industrial customers. Facilities include approximately 700 kilometers ("km") of pipeline and delivery networks with a daily capacity of approximately 70,000 cubic meters of natural gas. The company is currently constructing four additional natural gas distribution systems, and it has two more in the planning stages. Beijing Gas owns and operates natural gas distribution systems primarily in Hebei, Jiangsu, Anhui and Shandong Provinces. For further information, visit the Company's website at http://www.sino-gas.com/ . About Guannan Zhongyuan Natural Gas Co., Ltd. Guannan Zhongyuan Natural Gas Co., Ltd. is a private developer of natural gas distribution systems as well as a distributor of natural gas to residential, commercial and industrial customers in Guannan County in Jiangsu Province of China. 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; general economic and business conditions; the volatility of the Company's operating results and financial condition; 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. 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. All information in this release is as of July 10, 2007. The Company undertakes no duty to update any forward-looking statements to conform the release to actual results or changes in its circumstances or expectations after the date of this release. For more information, please contact: Sino Gas International Holdings, Inc. Ms. Fang Chen, Chief Financial Officer Tel: +86-10-8260-0527 Email: CCG Elite Investor Relations Crocker Coulson, President Tel: +1-646-213-1915/1914 (New York) Email: DATASOURCE: Sino Gas International Holdings, Inc. CONTACT: Ms. Fang Chen, Chief Financial Officer of Sino Gas International Holdings, Inc., +86-10-8260-0527, or ; or Crocker Coulson, President of CCG Elite Investor Relations, +1-646-213- 1915/1914 (New York), or , for Sino Gas International Holdings, Inc. Web Site: http://www.sino-gas.com/

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