Longwei Petroleum Expects Increased Revenues on China's Fuel Price Increase

TAIYUAN CITY, China, July 7 /PRNewswire-Asia-FirstCall/ -- Longwei
Petroleum Investment Holding Ltd. (OTC Bulletin Board: LPIH), a leading oil
and fuel wholesaler and distributor operating in Shanxi Province, China, today
announced that it expects to see an increase in gross profit of up to 10
percent on sales of its current fuel inventories as a result of the latest
Chinese government mandate to raise the benchmark retail prices of gasoline
and diesel oil. The National Development and Reform Commission of China
announced on June 29, 2009 that the retail prices of gasoline and diesel oil
would be increased 600 yuan($87.80) per ton, or 9 and 10 percent,
respectively.
"Longwei's current fuel inventory is 23,736 metric tons. With the
estimated 9 to 10 percent increase on the prices of diesel and gasoline made
by the Chinese government, we expect to see a corresponding increase in our
gross margins of 9 to 10 percent for the first quarter of fiscal year 2010,"
said Mr. Cai Yongjun, chief executive officer of Longwei Petroleum and
Investment Holding.
For the three months ended March 31, 2009, Longwei's revenues were $49.7
million, an increase of $17.5 million, or an increase of approximately 53
percent as compared to the same period in 2008. Net income for the quarter
ended March 31, 2009, was $6.7 million, with net margin of 13.4%.
Demand for finished oil products remains strong in the heavy-industry
region where Longwei operates. In addition to its wholesale operations,
Longwei also owns 11 franchised gas stations in Shanxi Province and owns and
operates another station at its Taiyuan property. With the latest price
increases on fuel, Chinese motorists now pay about $3 a gallon at retail
gasoline stations.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is one of the leading
distributors/wholesalers of diesel, gasoline, kerosene and fuel oils in
Taiyuan City, the capital of and largest city in Shanxi Province, P.R. China.
Longwei Petroleum Investment Holding Limited purchases diesel, gasoline, fuel
oil and kerosene from various suppliers. As an intermediary, the company seeks
to earn profits by buying diesel, gasoline, fuel oil and kerosene at
competitive prices and selling them to other wholesalers. In addition, Longwei
also earns revenues by acting as a purchase agent where they charge an agency
fee -- a fee which is charged to wholesalers who do not have a license to
purchase directly from refineries. Further, the company owns a gas station
located on its property where it generates additional profit and revenue. All
of the company's operating facilities are located in Taiyuan City, China.
For further information on Longwei Petroleum Investment Holding Limited,
please visit http://www.RedChip.com . You may register to receive Longwei
Petroleum Investment Holding Limited's future press releases or request to be
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Forward-Looking Statements
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current expectations,
estimates and projections about Longwei's industry, management's beliefs and
certain assumptions made by management. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance and are
subject to certain risks, uncertainties and assumptions that are difficult to
predict. Because such statements involve risks and uncertainties, the actual
results and performance of the Company may differ materially from the results
expressed or implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Longwei's operations are conducted in the PRC and,
accordingly, are subject to special considerations and significant risks not
typically associated with companies in North America and Western Europe. These
include risks associated with, among others, the political, economic and legal
environment and foreign currency exchange. The Company's results may be
adversely affected by changes in the political and social conditions in the
PRC and by changes in governmental policies with respect to laws and
regulations, anti-inflationary measures, currency conversion, remittances
abroad, and rates and methods of taxation. Other potential risks and
uncertainties include but are not limited to the ability to procure, properly
price, retain and successfully complete projects, and changes in products and
competition. Unless otherwise required by law, the Company also disclaims any
obligation to update its view of any such risks or uncertainties or to
announce publicly the result of any revisions to the forward-looking
statements made here. Readers should review carefully reports or documents the
Company files periodically with the Securities and Exchange Commission.
For more information, please contact:

Investor Relations:
Dave Gentry
RedChip Companies, Inc.
Tel: +1-407-644-4256, x104
Email: Dave@redchip.com
Web: http://www.RedChip.com

SOURCE Longwei Petroleum Investment Holding Ltd.

At the Company, Mr. HAOXIANG LI of Longwei Petroleum Investment Holding,
+86-139-3453-0811, or malachi9858@126.com ; or Investor Relations, Dave Gentry
of RedChip Companies, Inc. for Longwei Petroleum Investment Holding,
+1-407-644-4256, x 104, or Dave@redchip.com