XI'AN, China, Aug. 18 -- China Bio Energy Holding Group, an energy company engaged in the distribution of heavy oil and finished oil products and the production and distribution of bio-diesel fuel, today announced that it has added four retail gas stations to its operations. China Bio Energy now operates five retail gas stations. These acquisitions are part of China Bio Energy's strategy to leverage and strengthen its distribution network by expanding into the retail distribution of fuel.

The stations, previously operated by the Shaanxi Highway Service Company and equipped to sell gasoline and diesel fuel, are all located along major highways in Shaanxi Province. CBEH will operate the stations under long-term leases for which the initial duration is 15 years. The Company expects that annual revenue per station will average at least $8 million and anticipates net margins of 10% or more.

"We are very pleased to have expanded our retail business," stated Gao Xincheng, Chief Executive Officer of China Bio Energy. "We believe that these acquisitions are another excellent example of the value of our distribution network. Demand for fuel is high in China and often outstrips supply. As such, retailers are frequently unable to secure enough supply to sustain operations. Because we regularly distribute large amounts of gasoline and diesel fuel it is relatively easy for us to secure supply. This gives us a considerable advantage versus other retail gas station operators, which is why we decided to enter the retail business. In our bio-diesel business our ability to utilize our existing fuel distribution network to facilitate sales has allowed us to grow rapidly without having to invest significant time and capital into developing a new customer base. Like the bio-diesel market we consider the retail business to be an attractive source of growth for the Company and expect to add to our number of stations in the future. We will continue to look for ways to utilize all of our assets, including our distribution network, as we strive to deliver maximum growth and profitability for our shareholders."