Investee Company update

RNS Number:9744X
London Asia Chinese Private Equity
07 June 2007

7 June 2007

London Asia Chinese Private Equity Fund Limited

("LACPEF" or "the Fund")

LACPEF, the China focused investment fund, is pleased to provide an update to
investors on the progress of three of its Plus Markets listed investee
companies.

China New Energy Ltd ("CNE")

CNE, China's leading provider of turnkey technology solutions and equipment for
the production of ethanol, edible alcohol and acetic acid, produced an excellent
set of results for the four month trading period to 31 December 2006, with
revenue of #9.9 million and profit before tax and share options of #2.1 million,
equating to over #0.5 million profit per month. CNE has a current market
capitalization on PLUS of approximately #36 million. The Fund holds a 25%
stake.

CNE completed 4 contracts in 2006, with 26 contracts in progress as at 31
December 2006, representing #28 million in future revenue. CNE is continuing to
extend its presence in the international market, resulting in the signing of
major bio-ethanol production facility contracts in Hungary and Romania totalling
#6.5 million.

China CDM Exchange Centre Limited ("CCEC")

CCEC, the Chinese carbon credits advisory firm, announced profit after tax of
#271,000 on revenue of #323,000 for the two month trading period to December
2006. CCEC has a current market capitalization on PLUS of approximately #24
million. The Fund has a 10% stake.

CCEC has signed 17 new contracts so far in 2007. As at 24 May 2007 CCEC had 37
contracts in its portfolio, with contracted tonnes of over 100 million to 2012
(442 million tonnes for the 21 year period).

China Biofoods Limited ("China Biofoods")

China Biofoods announced profit after tax of #0.5 million for its five month
reporting period to 31 December 2006. China Biofoods has a current market
capitalization on PLUS of approximately #13 million. The Fund has a 31% stake.

China Biofoods specialises in the production of highly purified herb extract
products, which are then used to produce traditional Chinese medicine and as
ingredients in functional foods. The market for China Biofoods' products is
expanding rapidly worldwide and the products have recently been approved for
sale in the United States and Germany as well to the Jewish and Muslim
communities.

The development of its patented high-protein corn project has also been
progressing well. The corn is integrated with Soya bean protein to deliver four
times more protein than that of ordinary corn. China Biofoods anticipates
achieving certification of the high-protein corn as a seed product for sales by
the end of 2007.

Simon Littlewood, Director of the Fund, said: "Our portfolio companies continue
to deliver strong growth in sales and profits. The listing on PLUS has
generated significant interest outside China from financiers, business partners
and customers, providing the exposure which enables the businesses to expand
beyond their home markets."

For further information please visit www.londonasiafunds.com or contact:

John West/Andrew Dunn Simon Littlewood Hugh Field
Tavistock Communications London Asia Capital plc Collins Stewart Europe Limited
Tel: 020 7920 3150 Tel 020 7355 7928 Tel: 020 7523 8000

About CNE

CNE has established itself as the leading provider of turnkey ethanol production
solutions in China, with its technology used in over 30 projects to date. CNE is
supported by strong drivers with the demand for ethanol, a fuel seen as an
alternative to oil, growing rapidly and supported by a recent change in
legislation in China requiring 10% of all vehicle oil consumption to be biofuel
in 11 of China's Provinces. Similar legislation is coming into force in many
countries, such as the US and EU, creating a potential market for CNE to export
its products going forward. For additional information, visit the Company's web
site at www.chinanewenergygroup.com

About CCEC:

China CDM is a Jersey incorporated company providing brokerage, advisory and
research services relating to the reduction of greenhouse gases ("GHGs") in
Asia. It works with businesses and projects that generate carbon credits, and
assists the project owner to identify buyers for, and sell on, those carbon
credits.

The Company operates within the framework of the Clean Development Mechanism
("CDM") of the Kyoto Protocol, established under the auspices of the United
Nations Framework Convention on Climate Change. The Protocol commits countries
to reducing their emissions of GHGs by pre-determined amounts or to compensate
for maintained or higher GHGs emissions via emissions trading.

Additional information is available at www.chinacdmex.com

About China Biofoods

Biofoods is based in Xuchang, Henan Province, the centre for farming traditional
Chinese medical herbs. It specialises in the production of highly purified herb
extract products, which are then used to produce traditional Chinese medicine,
and as ingredients in functional foods.

The market for "Functional Foods" is expanding rapidly worldwide, especially in
China. "Functional Foods" are foods or dietary components that may provide a
health benefit beyond their basic nutritional value. Such products are aimed at
a wide variety of markets, from those with poor diets and limited resources
seeking additional nutritional content in their diet, to those whose lifestyles
are levels of stress require them to eat more healthy food, to the aged who are
seeking traditional cures to age related ailments.

Biofoods' core products are highly purified linolenic acids, Reshi mushroom
spore oil, and deodorized garlic oil. Linolenic acid, also known as Vitamin F,
is an essential fatty acid which is not produced by the body, and has been
proven to improve hair and skin, reduce blood pressure, help prevent arthritis,
lower cholesterol and triglycerides, and reduce the risk of blood clots. Reshi
mushroom spore oil is broadly used in the health food industry as a supplement
and intermediate ingredient.

For additional information, please visit the company's web page
www.chinabiofoods.com.cn

Valuation Policy

For investments actively traded in organised financial markets, the Company's
accounting policy is that fair value is determined by reference to Stock
Exchange quoted market bid prices as at the close of business on the balance
sheet date. The fair value of other investments is determined in accordance with
the International Private Equity and Venture Capital Guidelines.

This information is provided by RNS
The company news service from the London Stock Exchange
END

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