Sancon Resources Recovery, Inc. Announces Record Preliminary 2008 Second Quarter...

Sancon Resources Recovery, Inc. Announces Record Preliminary 2008 Second Quarter Results

Quarterly Revenue Increases 73.3%, Gross Profit Rises 641% Leading
to Diluted EPS of $0.02; Company Earns $0.06 for 2008 First Six Months
SHANGHAI, China--(Business Wire)--
Sancon Resources Recovery, Inc. (OTCBB:SRRY), a rapidly growing
environmental services and industrial waste recycling company, with
operations in both China and Australia, today announced record
preliminary second quarter results for the period ended June 30, 2008.

The Company generated record 2008 second quarter revenue of
approximately $2.93 million, a 73.3% increase compared to $1.69
million in the 2008 second quarter. Revenue increased due to strong
growth in China. Gross profit increased 641% to $1.26 million compared
to $0.17 million in the year earlier period. Gross profit declined
from $1.51 million in the 2008 first quarter due to damage to roads
and highways in certain cities the Company does business in as a
result of the Wenchuan earthquake. This damage increased the amount of
time it took to complete waste collections, increasing the cost to the
Company. Many of the roads and highways have since been repaired.

Gross margin increased from 10.3% in the 2007 second quarter to
43% in the 2008 second quarter due to increased sales of higher margin
services in China. 2008 second quarter net income was a record $0.37
million, or $0.02 per diluted share, compared to a loss of $(0.06)
million or $0.00 per share in the year earlier period. The 2008 second
quarter was the Company's second consecutive quarter of profitability.
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 $(0.01) per
share in the year earlier period.

Despite the strong revenue growth in the 2008 second quarter, the
Company's revenue would have been even higher except for the
disruption caused by the earthquake that impacted Sancon's ability to
offer environmental services in certain areas that were impacted by
the earthquake. Profitability was also impacted by the Company's
decision to increase spending to develop ways to turn waste glass
material into new usable products and materials, which it believes
will allow it to generate additional sources of revenue and
investments in additional infrastructure to support anticipated growth
throughout the balance of 2008 and 2009.

"We are pleased to announce our second consecutive quarter of
profitability," said Jack Chen, Sancon's Chief Executive Officer.
"Despite challenges presented by the earthquake in China, which
impacted our ability to offer services in certain markets, we
continued to expand our customer base and market. The market in China
is substantial and still in its early stages of growth, and we have
positioned the Company to benefit from the Chinese government's
mandate to clean up the environment in the next 15 years. We will
continue to strategically increase our recycling plants and depots to
support growth in new Chinese cities and to expand the services we
provide customers in our target markets."

The Company expects to provide a business outlook for fiscal 2008
when it announces results in mid-August and will hold a conference
call for the investment community to discuss its results. Details on
the timing of the conference call will follow.

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.

CEOcast, Inc. for Sancon Resources Recovery, Inc.
Dan Schustack, 212-732-4300
dschustack@ceocast.com
or
Sancon Resources Recovery, Inc.
Jack Chen, CEO, +86 21 5284 3310
info@sanconinc.com

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