New Investment

    RNS Number : 5469W
  Vision Opportunity China Fund Ltd
  12 June 2008
   

    NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES,
    CANADA, AUSTRALIA, REPUBLIC OF SOUTH AFRICA OR JAPAN

    12 June 2008

    Vision Opportunity China Fund Limited

    New Investment

    Vision Opportunity China Fund Limited ("VOC") (AIM:VOC.L) today announces it has invested $15,000,000 in Southern Sauce Company, Inc.
("Southern Sauce") (OTCBB:SOSA).  Until 30 June 2008, Southern Sauce has the option to raise another $5,000,000 on the same terms. 
Immediately prior to VOC's investment, Southern Sauce acquired all of the issued and outstanding capital stock of Shen Kun International
Limited ("Shen Kun").  Shen Kun conducts its business through Tianjin Shengkai Industrial Technology Development Co., Ltd. ("Shengkai"), a
Chinese company engaged in the design, manufacturing and sales of ceramic valves, the manufacturing and sales of high-tech ceramic
materials, technical consultation and services, and the import and export of ceramic valves and related technologies. Shengkai sells its
products in China, North America and the Asia-Pacific region.  Over the past two years, Shengkai's business has shown significant growth
with net revenues increasing to $23.1 million for the fiscal year ended 30 June 2007 from $13.7 million for the fiscal year ended 30 June 2006.  Net profit was $6.6 million for the fiscal year ended 30 June 2007,
an increase from $4.2 million for the fiscal year ended 30 June 2006.  For the nine months ending 31 March 2008, Shengkai achieved $24.0
million of revenue and $7.7 million of net profit.

    In return for its investment, VOC received the following:
    (a) 5,915,526 Series A preferred shares initially convertible into shares of Southern Sauce's common stock at a price of $2.5357 per
share; and
    (b) 5 year Series A warrants to purchase up to 7,098,632 shares of Southern Sauce's common stock at an exercise price of $3.52 per
share.

    This transaction is described in more detail in an 8-K and other supporting documents to be filed by Southern Sauce with the Securities
and Exchange Commission.

    "Shengkai's unique product and technology is a breakthrough in the ceramic valve industry.  In addition to Shengkai's success in
penetrating the electricity generating industry in China, we believe there is great potential for Shengkai's products in other areas such as
petrochemical and metallurgy industries. We are excited about Shengkai's growing international footprint," stated Adam Benowitz, the
portfolio manager of VOC at Vision Capital Advisors, LLC.

    On 14 February 2008, VOC invested $317,500 to acquire 1,355,000 shares of the then 2,930,550 shares outstanding in Southern Sauce's
common stock.  At the time, Southern Sauce had limited operations and VOC's shares were acquired with a view to considering mergers or
acquisitions solely with companies with operations in Greater China.  Southern Sauce affected a 1:2 reverse stock split as at 14 April 2008.
 VOC held 677,500 shares of common stock post split. 

    Enquiries to:

    Vision Opportunity China Fund Limited
    David Benway, Director / Adam Benowitz, Portfolio Manager
    www.vocfund.com Tel: [phone]

    Fairfax I.S. PLC
    Gillian McCarthy/ James King Tel: [phone]

    Bankside Consultants Limited
    Simon Rothschild/ Oliver Winters Tel: [phone]

    NOTE TO EDITORS

    Vision Opportunity China Fund Limited
    Vision Opportunity China Fund Limited ("VOC") is a closed-ended listed fund traded on AIM. VOC primarily invests directly in listed
companies with operations principally within Greater China. Greater China is a collective term for the territories administered by the
People's Republic of China, those administered by the Republic of China and Singapore.

    Tianjin Shengkai Industrial Technology Development Co., Ltd. 
    Shengkai is engaged in the design, manufacturing and sales of ceramic valves, the manufacturing and sales of high-tech ceramic
materials, technical consultation and services, and the import and export of ceramic valves and related technologies. These industrial valve
products are used by companies in the electric power, petrochemical, metallurgy, and environmental protection industries as
high-performance, more durable alternatives to traditional metal valves. 

    Shengkai develops ceramic products with more than 700 types and specifications in 32 series, under nine categories. Of these, Chinese
patents have been obtained for 12 products, and applications for nine more are pending. Shengkai's products have won the title of "National
Key New Product" in China four times from 1999-2003 and won a silver medal in the Shanghai International Industry Fair in 2002.

    Shengkai's products are sold all across China and are exported to North America, and other countries in the Asia-Pacific region totaling
over 300 customers. After a six-year application process, Shengkai became a supplier of China Petroleum & Chemical Corporation ("CPCC") in
2005 and a member of the PetroChina supply network in 2006.


This information is provided by RNS
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