China Solar & Clean Energy, Inc. Reports Fiscal Second Quarter 2008 Financial Results

               -- Revenue Increases 97.8% to $18.6 Million

              -- Net Income Increases 69.5% to $1.1 Million



BEIJING, Aug. 15 /Xinhua-PRNewswire-FirstCall/ -- China Solar & Clean Energy, Inc. (OTC:CSOL) (BULLETIN BOARD: CSOL)  ("CSOL"), a premier manufacturer and distributor of solar water heaters, renewable energy solutions, and space heating devices in the People's Republic of China, today announced its financial results for the quarter ended June 30, 2008.

Revenue increased approximately $9.2 million, or 98%, to $18.6 million for the fiscal quarter ended June 30, 2008, from $9.4 million in the same period in 2007.  The overall increase in revenue was primarily attributed to the acquisitions of Tianjin Huaneng and Shenzhen Pengsangpu Solar Industrial Products (SZPSP).  Revenue from solar heater and boiler products increased 6.0% to approximately $10 million for the second quarter of 2008 from $9.4 million in the prior year period.  Heat-pipe and energy-saving products were $5.8 million and $2.8 million for the second quarter of 2008, compared to no sales in both business segments in the prior year period.  For the six months ended June 30, 2008, sales revenue increased 117% to $26.9 million, compared to $12.4 million in the prior year period.

Gross profit increased approximately $2.5 million, or 131%, to $4.5 million for the second quarter of 2008 from $1.9 million for the same period in 2007.  The increase in gross profit was primarily due to the increase in sales volume of higher-margin businesses acquired through Tianjin Huaneng. Moreover, organic gross profit in the initial solar heater and boiler business grew 6% to $2.0 million in the second quarter of 2008, compared to the same period in the prior year.  This increase in organic gross profit was mostly due to a growth in sales volume.  Gross profit as a percentage of revenue was 23.9% for the second quarter of 2008, an increase of 340 basis points from 20.5% in the same period in 2007.  For the six month period, gross profit increased 158% to $6.9 million, compared to $2.7 million in the prior year period.

Operating expenses increased 111% from $1.1 million in the second quarter of 2007 to $2.4 million in 2008.  Operating expenses as a percentage of sales increased to 12.9% as compared to 12.1% in the prior year period.  This increase was mainly due to increases in sales and promotion expenditures and acquisition costs of Tianjin Huaneng and SZPSP.  For the six month period, operating expenses increased 126% to $3.7 million as compared to $1.6 million in the prior year period.

Operating Income increased 161% to $2.1 million for second quarter of 2008 from $0.8 million in the same period in 2007.  As a percentage of sales, operating income was 11.0% as compared to 8.3% in the prior year period.  For the six month period, operating income increased 207% to $3.3 million as compared to $1.1 million in the prior year period.

Net income for the three months ended June 30, 2008 was $1.1 million as compared to net income of $0.6 million in the prior year period.  Earnings available to common shareholders, on a fully diluted basis, were negative ($0.05) for the second quarter of 2007 owing to a preferred stock beneficial conversion provision of approximately $1 million during that period. Excluding that provision earnings available to commons shareholders, on a fully diluted basis, were $0.10 in the second quarter of 2007.  For the second quarter of 2008 earnings available to common shareholders on a fully diluted basis were $.07.  Diluted shares outstanding increased 151% to 15.6 million in the second quarter of 2008 as compared to 6.2 million in the prior year period. For the six months ended June 30, 2008, net income increased 61% to $1.5 million as compared to $0.9 million in the prior year period.  Earnings available to common shareholders on a fully diluted basis increased from a negative ($0.01) to $0.11 per share.

"We are pleased with our performance in the second quarter of 2008," stated Mr. Deli Du, Chief Executive Officer of China Solar & Clean Energy Solutions.  "The heat pipe products division that we obtained via our acquisition of Tianjin Huaneng continued to perform well.  Our energy savings product group, obtained via the acquisition of Shenzhen Pengsangpu Solar Industrial Products (SZPSP), also performed well in its first quarter as a part of our Company.  Combining these two groups with our solar heater and boiler division we believe that we now have a broad, strong foundation of energy-related products upon which we can build significant growth in the future.  We would continue to apply our experience to broadening the distribution of each of our product groups while also enhancing operating efficiencies.  We believe that, in light of the increasing cost of energy in China and throughout the world, demand for our portfolio of products will continue to grow at a high rate.  We think that we are well positioned to benefit from this trend and will continue to aggressively pursue growth in this market."

About China Solar & Clean Energy Solutions, Inc.

China Solar & Clean Energy Solutions, Inc. operates through its wholly owned subsidiaries Bazhou Deli Solar Energy Heating Co. Ltd. ("Deli Solar (Bazhou)"), Beijing Deli Solar Technology Development Co., Ltd. and its 51% ownership in Tianjin Huaneng Group, all located in the PRC.  The Company manufactures and distributes hot water and space heating devices to customers in the PRC, in addition to waste heat recovery systems.  For more information, please visit http://www.cn-sce.com/ .

Safe Harbor Statement:

Certain statements in this news release may contain forward-looking information about China Solar & Clean Energy Solutions and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules.  The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, market and customer acceptance and demand for products, ability to market products, fluctuations in foreign currency markets, the use of estimates in the preparation of financial statements, the impact of competitive products and pricing, the ability to develop and launch new products on a timely basis, the regulatory environment, fluctuations in operating results, and various other factors beyond its control.  All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission.  China Solar & Clean Energy Solutions undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

                            Financial Tables


                 CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
         FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007
           Currency expressed in United States Dollars ("US$"))
                              (Unaudited)

                               Three months ended       Six months ended
                                    June 30,                 June 30,
                                  2008        2007        2008        2007


  Revenue, net             $18,630,198  $9,418,160 $26,930,274 $12,414,023

  Cost of revenue           14,173,216   7,490,129  20,018,232   9,739,044



  Gross profit               4,456,982   1,928,031   6,912,042   2,674,979

  Operation Expenses
  Depreciation and
   amortization                132,216      35,630     281,383      70,966
  Selling and distribution   1,118,041     237,502   1,620,604     281,532
  General and administrative 1,155,736     870,084   1,757,389   1,264,041


  Total operating expenses   2,405,993   1,143,216   3,659,376   1,616,539


  Income from operations     2,050,989     784,815   3,252,666   1,058,440

  Other income (expenses):
  Other income                  25,741          --      66,831          --
  Interest income                1,638          78       1,638       1,735
  Other expense                (45,266)         --     (45,266)         --
  Interest expense            (109,858)        (97)   (143,696)        (97)
  Total other (expense)
   income                     (127,745)        (19)   (120,493)      1,638




  Income before income taxes 1,923,244     784,796   3,132,173   1,060,078


  Income tax expenses          441,015     137,976     787,278     137,976
  Minority interest            386,016          --     859,031          --

  NET INCOME                $1,096,213    $646,820  $1,485,864    $922,102

  Computation of income available to common stockholders:

  Net Income                $1,096,213    $646,820  $1,485,864    $922,102
  Preferred stock beneficial
   conversion                       --    (975,807)         --    (975,807)

  NET INCOME AVAILABLE TO
   COMMON STOCK HOLDERS     $1,096,213   $(328,987) $1,485,864    $(53,705)

  Net income (loss) per
   share -- basic                $0.08      $(0.05)      $0.14      $(0.01)

  Net income per share
   -- diluted                    $0.07      $(0.05)      $0.11      $(0.01)

  Weighted average shares
   outstanding -- basic     13,075,468   6,205,290  10,612,185   6,205,290

  Weighted average shares
   outstanding -- diluted   15,584,542   6,205,290  13,006,396   6,205,290



                 CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                 AS OF JUNE 30, 2008 AND DECEMBER 31, 2007
            (Currency expressed in United States Dollars ("US$"),
                       except for number of shares)

                                                   June 30,    December 31,
                                                      2008          2007
                                                (Unaudited)       (Note 1)
  ASSETS
  Current assets:
  Cash and cash equivalents                    $  6,689,173  $   5,466,637
  Accounts receivable, net                        9,262,801      7,453,009
  Inventories                                     6,256,439      3,875,658
  Other receivables and prepayments               5,865,320      1,637,948

  Total current assets                           28,073,733     18,433,252

  Property, plant and equipment, net             12,191,828      8,819,216
  Goodwill                                        4,705,591      1,789,324
  Intangible assets, net                          1,673,660      1,597,921
  Customer relationships, net                     1,072,500             --
  Intellectual property -- unpatented
   technology, net                                  916,500             --

  TOTAL ASSETS                                 $ 48,633,812  $  30,639,713

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
  Accounts payable, trade                      $  1,831,368  $   2,111,028

  Income tax payables                             1,538,863      1,108,433

  Other payables and accrued liabilities         10,158,585      8,552,452

  Total current liabilities                      13,528,816     11,771,913

  Deferred tax liabilities                          265,664             --

  Minority interests                              1,879,303        935,825

  Stockholders' equity:
  Convertible preferred stock: par value
   $0.001; 25,000,000 shares authorized,
   638,082 (unaudited) and 1,774,194 shares
   issued and outstanding, respectively                 638          1,774
  Common stock, $0.001 par value; 66,666,667
   shares authorized; 13,527,630 (unaudited) and
   6,205,690 shares issued and outstanding,
   respectively                                      13,527          6,205
  Additional paid-in capital                     22,288,728      9,260,607
  Accumulated other comprehensive income          1,642,153      1,134,270
  Retained earnings                               9,014,983      7,529,119

  Total stockholders' equity                     32,960,029     17,931,975


  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 48,633,812  $  30,639,713



  For more information please contact:

   Dan Joseph
   ICR, Inc.
   Tel: [phone]

   Bill Zima
   ICR, Inc.
   Tel: [phone]


DATASOURCE: China Solar & Clean Energy, Inc.



CONTACT:  Dan Joseph, [phone]; Bill Zima, [phone], both

of ICR, Inc.



Web Site:  http://www.cn-sce.com/ 

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