ZhongDe Waste Technology AG Presents Strong Performance in H1 2007

ZhongDe Waste Technology AG ('the Company') today announced its H1
2007 results which reflect the Company's strong performance and prove
its ability to take advantage of the favourable business environment
it is operating in. This is further supported by the successful
listing of the company on the Frankfurt Stock Exchange in the Prime
Standard segment on July 6, 2007, in which net proceeds of EUR 72
million were raised.

The Company achieved revenues of EUR 15.0 million in the first
half of 2007, compared to EUR 7.6 million in the same period of the
previous year, an increase of 99 % primarily due to the strong
performance in the municipal solid waste incinerator segment. In the
first half of 2007, the Company focused its sales efforts on municipal
solid waste incinerators as the sector is strongly supported by the
Chinese government policy on environmental protection thus creating an
extremely favourable environment. It became the Company's principal
revenue stream, accounting for 62 % of total sales. Total sales of
municipal solid waste incinerators amounted to EUR 9.3 million in
2007; no such incinerators were sold in the first half of 2006. Sales
of medical waste incinerators amounted to EUR 5.7 million in the first
half of 2007, down 24 % on the result for the same period in the
previous year.

Total order intake in the first half of 2007 amounted to EUR 18.9
million compared to EUR 12.2 million in the same period of the
previous year, an increase of 55 %, and resulted in an order backlog
of EUR 8.4 million (EUR 6.0 million as at June 30, 2006). During the
first half year of 2007 the Company received 16 new orders with a
total contract value of EUR 15.8 million in the municipal solid waste
incinerator sector and EUR 3.1 million in the medical waste
incinerator sector. Five orders for municipal waste incinerators and
three orders for medical waste incinerators were in the process of
production as at June 30, 2006, and will be delivered in the second
half of 2007.

EBITDA rose sharply from EUR 4.6 million in the first half of 2006
to EUR 8.8 million in the first half of 2007, an increase of 93 %
which reflects the strong underlying sales performance, specifically
of municipal waste incinerators and the tight control of operating
costs. The EBITDA margin declined slightly from 60 % in the first half
of 2006 to 59 % in the same period of the current year due to the
shift in revenues from the medical waste incinerator segment where the
gross margin actually improved from 69 % in the first half of 2006 to
77 % in the first half of 2007 to the solid waste incinerator segment
where the margin averaged 61 % in the first half of the year.

The Company managed to maintain efficient cost control measures,
whereby operating expenses increased in line with sales on a
percentage basis to EUR 5.0 million in the first half of 2007 from EUR
2.4 million in the previous year period. Administrative expenses
increased by 126 % due to expenses associated with the listing
process.

As a result of the expansion into the municipal solid waste
incinerator segment, an increased control of the operating costs and
the tax exemption of the Company in 2007, the net profit climbed from
EUR 3.0 million in the first half of 2006 to EUR 8.8 million in the
first half of 2007, or by 196%. At the same time the net profit margin
increased from 39 % in the first half of 2006 to 59 % in the first
half of 2007.

Earnings per share, on a fully diluted basis, rose from EUR 0.23
in the first half of 2006 to EUR 0.68 in the first half of 2007, an
increase of 196%.

The Company has repaid all of its bank loans and, with a positive
net cash position, posted net interest income of EUR 39,000 in the
first half year of 2007, compared to an interest expense of EUR 20,000
in the same period last year.

The Company's growth strategy is to establish a solid foundation
in the marketplace for small to midsized municipal solid waste
incinerators by selling equipment with larger processing capacities
and also by implementing BOT ("Build - Operate - Transfer") projects.
ZhongDe Waste Technology AG announced on August 9, 2007 that ZhongDe
Group has signed binding agreements for a BOT project in Xihua Henan,
and a BOO project ("Build - Operate - Own") in Feicheng Shandong. The
successful signing of these two contracts represents the
implementation of its key strategy, that of expanding the value chain
into the operation of waste incineration plants and thus that of
generating recurring revenues, thereby strengthening its market
position in the municipal waste disposal segment.

The major portion of the proceeds generated by the Initial Public
Offering, which went ahead in July 2007 in the Prime Standard of the
Frankfurt Stock exchange, will be used to operate waste incinerators
for and with municipalities in conjunction with the production and
marketing of by-products such as steam, hot water, bricks, and
electricity. The implementation of the two signed projects will
commence shortly, now that ZhongDe has negotiated better conditions
than initially discussed. Further negotiation of four additional BOT
projects in Changzhi, Guilin, Jian'ou and Wuxiang, for which
non-binding letters of intent had been signed prior to the Initial
Public Offering, are on schedule and are likely to be finalized in the
second half of 2007. These projects are expected to have a positive
effect on the Company's revenues and results in 2008.

The Company intends to continue to put strong emphasis on the
realization of larger-sized municipal solid waste incinerators and is
currently in discussions on various projects.

CEO Zefeng Chen comments: "The first half 2007 results show that
we have managed to establish ourselves as a leading waste solution
provider in the municipal segment. We are therefore confident that we
can continue to take advantage of the favourable business environment.
For the financial year 2007 we expect further strong earnings
development for which the existing order backlog, the pending BOT
projects together with an increasing brand awareness of our technology
in the solid waste disposal market are a strong indication."

Key Financial Highlights

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*T
Income statement and operational data kEUR H1 2007 H1 2006 % change
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Order intake 18,945 12,228 +55
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Order backlog 8,356 6,004 +39
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Revenues 15,017 7,559 +99
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Gross profit 10,057 5,206 +93
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Gross profit margin 67% 69%
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EBITDA 8,788 4,555 +93
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EBITDA margin 59% 60%
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EBIT 8,764 4,535 +93
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EBIT margin 58% 60%
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Net profit 8,809 2,980 +196
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Net profit margin 59% 39%
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Earnings per share - basic* 0.88 0.30
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Earnings per share - diluted** 0.68 0.23
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* based on 10,000,000 shares
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**based on 13,000,000 shares following capital increase at time of
listing
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*T

About ZhongDe Group:

ZhongDe Group designs, manufactures and installs pyrolytic, grate
and rotary kiln waste incinerators for the disposal of solid medical,
municipal and industrial (including hazardous) waste. Since 1996
ZhongDe Group has installed more than 170 waste incinerators in about
13 provinces and in the last three financial years alone 112 waste
incinerators. Its waste incinerators are principally constructed for
operators of medical disposal centers in the hospital and healthcare
industry as well as for small and mid-sized Chinese cities in
developed areas of the People's Republic of China. The Management
Board of ZhongDe Group believes that ZhongDe Group is one of the
leading suppliers of small and mid-sized solid waste incinerators in
China. The trading of the shares (German Securities Identification
Number ZDWT01, ISIN DE000ZDWT018 and ticker symbol ZEF) commenced on
the Prime Standard segment of the Frankfurt Stock Exchange on July 6,
2007.

This document constitutes neither an offer to sell nor a
solicitation to buy securities of ZhongDe Waste Technology AG. The
securities have already been sold.

This document is not an offer of securities for sale in the United
States of America. Securities may not be offered or sold in the United
States of America absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended. The
shares in ZhongDe Waste Technology AG have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and are
not being and will not be offered or sold in the United States of
America.

This document is directed at and/or for distribution in the U.K.
only to (i) persons who have professional experience in matters
relating to investments falling within article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (the
"Order") or (ii) high net worth entities falling within article
49(2)(a) to (d) of the Order (all such persons being together referred
to as "relevant persons"). This document is directed only at relevant
persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents. Any investment or
investment activity to which this document relates is available only
to relevant persons and will be engaged in only with relevant persons.