China Holdings Announces Development on TaiHu and Ongniute Biomass Power Plants/Projects

Thursday, May 22, 2008 General News
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BEIJING and LAS VEGAS, May 21 ChinaHoldings, Inc. (OTC Bulletin Board: CHHL), a global diversified asset holdingscompany, and its subsidiaries that engage in multiple China-focused businessactivities including energy, renewable energy, resources, utilities, finance,real estate, and pharmaceuticals, today announced the development on TaiHu andOngniute Biomass Power Plants/projects as follows:

China Holdings and its wholly owned subsidiary: China Power, Inc. (''theCompany'') have completed:

The Company also confirms that its projects, operations and developmentwere not adversely affected by the recent earthquake in Sichuan province ofChina. The Company has deep sympathy for those affected by this recent tragicevent in China. We pray for those people who have died as a result of thistragic occurrence. We do our best to assist those who are impacted by suchdestructive forces.

Summary of Feasibility Study - TAIHU BIOMASS POWER PLANT

The Company's TaiHu biomass waste to energy power plant/project(2x25=50MW), located in Anhui Province, PR China, uses biomass waste fromagriculture and forestry, like rice straw, bush and quitch as fuels forelectricity power generation. To implement the China national renewable energypolicy, using biomass waste to produce power generation, making rational useof agricultural waste and forestry waste resources, and developing local richbiomass energy, environmental protection and the promotion of local economicdevelopment, the Company took a wide survey of resources, constructionconditions and investment environment and selected to build a biomass waste toenergy plant with the scale of 50 MW capacity in Taihu County. At the sametime, the local government actively supports the project from constructionsites, fuel supply, water supply, and other preferential policies.

Biomass Waste Fuel Supply in Taihu

Taihu County, rich in biomass resources, is the commodity grain basecounty in China. Taihu County has rice cultivation area of 33,700 hectares,with an annual output of 255,000 tons of rice straw, cotton cultivation areaof 3,300 hectares, with an annual output of 156,000 tons of cotton stalk,wheat cultivation area of 5,700 hectares, with an annual output of 26,000 tonsof wheat straw, and rapeseed cultivation area of 13,700 hectares, with anannual output of 306,000 tons of rapeseed stalk. Taihu County has forestryland area of 105,600 hectares, with the annual forest waste of the bushes offruit trees and shrubs of about 570,000 tons, and, of quitch, about 400,000tons. The total biomass waste material is over 1.7 millions tons.

The Company's TaiHu biomass waste to energy power plant/project's capacityis planed as 50 MW using agricultural waste and forestry waste as plant fuels.The average heat value of agricultural waste and forestry waste is 13064 kJ/kg.The project will install four CAPS-II/310MT gasification systems. Each systemwill dispose of 310 tons per day of agricultural and forestry waste. Eachsystem will be running at full capacity for 7920 hours per year. The totalannual fuel consumption of the project is 409,200 tons of agricultural andforestry waste.

The Company will also lease 13,000 hectares of land as the fuel supplyreserve base of the power plant.

To ensure this agricultural waste and forestry waste supply to the powerplant, the Company will set up 8 satellites collection stations to collect andstore agricultural waste and forestry waste and keep the power plant safely incontinuous operation.

''Controlled Air Pyrolysis System'' (CAPS)

CAPS is the Company's biomass waste power generation system that employstwo cycles to improve overall efficiency. CAPS is a modular system with twochambers for the controlled air pyrolysis/gasification process; a primarychamber for gasifying and a secondary chamber for oxidizing. The enhancedcapability to control

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