Sancon Reports Record 2008 First Quarter Results

SHANGHAI, China--(BUSINESS WIRE)--Sancon Resources Recovery, Inc. (OTCBB:SRRY), a rapidly growing industrial and commercial waste management and waste recycling company, with operations in both China and Australia, today announced record first quarter results for the period ended March 31, 2008.

The Company generated record 2008 first quarter revenue of $2.95 million, a 326% increase compared to $0.69 million in the 2007 first quarter. Revenue increased significantly due to strong growth in China. Gross profit increased 843% to $1.51 million compared to $0.16 million in the year earlier period. Gross margin increased from 23.2% in the 2007 first quarter to 51.3% in the 2008 first quarter due to increased sales of higher margin services in China. 2008 first quarter net income was a record $0.79 million, or $0.04 per diluted share, compared to a loss of $(0.16) million, or a loss of $(0.01) per share in the year ago period.

“We are pleased to announce strong first quarter results,” said Jack Chen, Sancon’s Chief Executive Officer. “Our results reflect our early efforts to execute on lucrative waste management opportunities in China. The market in China is substantial and we have positioned the Company, based upon our experience successfully running operations in Australia, to benefit from the Chinese government’s mandate to clean up the environment in the next 15 years. We expect the tax and other financial incentives offered will serve as a catalyst for Sancon to continue its rapid growth. Our investment last year in the deployment of 6 recycling plants and more than 30 depots around China during 2007, with more than 60 collection vehicles, has begun to yield results. As a result, the Company now can provide waste management services to commercial clients about 200 Chinese cities.”

About Sancon Resources Recovery, Inc.

Sancon Resources Recovery, Inc. is an environmental service and waste management company that operates recycling facilities in China and Australia. Sancon specializes in the collection and recovery of industrial and commercial solid wastes such as plastic, paper, cardboard, and glass. The recycled materials are re-used by Sancon's manufacturing customers in China to make a wide variety of new products including outdoor furniture, construction materials, building materials, road surface, and various new products. Sancon's China operation is licensed by the Chinese government for waste management services, and is certified with ISO 9001 and ISO14001 standards. For more information please visit: www.sanconinc.com.

Forward-looking statements:

The statements made in this press release, which are not historical facts, may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.