China Industrial Waste Management Announces 2011 First Quarter Financial Results

China Industrial Waste Management, Inc. (OTCBB: CIWT) ("China Industrial Waste Management" or the "Company"), a leading environmental services and solutions provider in China, today announced its financial results for the first quarter ended March 31, 2011.

First Quarter Highlights

Revenues increased 48.1% to $6.1 million

Gross profit increased 15.2% to $3.1 million

Operating income increased 10.3% to $1.7 million

Net income attributable to the Company increased 101.4% to $1.2 million

Diluted earnings per share doubled to $0.08

About China Industrial Waste Management, Inc.

China Industrial Waste Management is a leading environmental services and solutions provider in China. The Company is based in Dalian, Liaoning Province, China and has been engaged in the industrial solid waste treatment business since 1991. Today, the Company is the largest industrial solid waste management enterprise in northeastern China. China Industrial Waste Management's main businesses are industrial solid waste treatment and recycling, municipal sewage and sludge treatment, and environmental protection engineering.

Last Trade: 1.08 52 Week: 1.98 – 0.87 Market Cap: 16.56 Million

darcy.zhang@chinaciwt.com

DALIAN, China, Nov. 15, 2010 /PRNewswire-Asia-FirstCall/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT) ("China Industrial Waste Management" or the "Company"), a leading environmental services and solutions provider in China, today announced its results for the three and nine months ended September 30, 2010.

Third Quarter Highlights

• Revenues increased 47.6% to $4.6 million compared to the third quarter of 2009
• Gross profit increased 24.0% to $2.4 million
• Operating income increased 69.9% to $1.3 million
• Operating margin increased to 29.1% from 25.3%
• Net income increased 46.8% to $1.0 million, or $0.06 per diluted share, compared to $0.7 million, or $0.05 per diluted share for the same period last year.

"Our strong third quarter results were the result of the continued growth of our Dontai Organic sludge treatment business and higher selling prices and sales volumes of recycled commodities," said Mr. Jason Dong, Chairman and Chief Executive Officer. "While our gross profit margin was off slightly as our sludge treatment business has not yet reached full capacity, every other significant financial measure showed improved.The need within China for environmentally-sound waste disposal methods is at a historic high and we believe we are well-positioned to provide solutions to this growing market. "

Third Quarter 2010 Results

Revenues increased 47.6% to $4.6 million from $3.1 million in the same period last year. The increase in revenues is mainly attributable to an increase in the Company's solid waste treatment business as production volumes from the Company's industrial customers continue to recover from the lows of 2009, and the additional revenue generated by Dongtai Organic from municipal sludge treatment, as well as sales of biogas (methane), a byproduct derived from sludge fermentation.

Revenues from service fees increased 33.5% to $2.7 million, or 59.1% of total revenues, from $2.0 million, or 65.3% of total revenues, in the prior year period. The increase is mainly attributable to the addition of $0.6 million in sludge treatment fees from Dongtai Organic, which was not operational during the same period in 2009. (Dongtai Organic began operations in the first quarter 2010.)

Sales of recycled commodities increased 74.1% to $1.9 million, or 40.9% of revenues, compared to $1.1 million, or 34.7% of revenues, in the same period last year. The rise is attributable to higher selling prices and sales volume for these products. China's economy continued its strong growth during the third quarter of 2010. Market prices for many raw materials, including for Dalian Dongtai's main products, cupric sulfate and other recycled commodities such as iron, plastic and nonferrous metal, which increased during the first half of 2010, began to stabilize during the third quarter. For example, the average price for cupric sulfate has stabilized at about $1,700 per ton, while the average price for the same period of 2009 was approximately $1,160 per ton. Many of the Company's customers have returned to their pre-recession production levels and some of them have further expanded their production scale. As a natural consequence of all these factors, the amount of recycled commodities collected from the Company's clients increased as well. Based on management's estimate of future market conditions, Dalian Dongtai has decided to increase the sales volume of recycled commodities, including some commodities that had been inventoried during 2009 due to their low sales prices.

Gross profit increased 24.0% to $2.4 million from $1.9 million in the same period last year. Gross margin was 52.1% compared to 62.1% in the prior year period. The decline in gross margin is primarily attributable to the additional overhead imposed by Dongtai Organic's sludge treatment operations, a recently-added business line which has not yet reached full capacity.

Income from operations increased 69.9% to $1.3 million from $0.8 million in the prior year period. Operating margin increased 380 basis points to 29.1% from 25.3% in the prior year period. The increase in operating margin is primarily due to operating leverage from the Company's higher level of sales.

Net income increased 46.8% to $1.0 million from $0.7 million in the same period last year. Diluted earnings per share increased 27.5% to $0.06 from $0.05 in the same period last year.

Nine Month Results

Revenues increased 89.6% to $13.6 million from $7.2 million in the same period last year. Revenues from service fees increased 82.3% to $8.9 million, or 65.3% of total revenues, from $4.9 million, or 67.9% of total revenues, in the prior year period. Sales of recycled commodities increased 105.2% to $4.7 million, or 34.7% of revenues, compared to $2.3 million, or 32.1% of revenues, in the same period last year.

Gross profit increased 85.0% to $8.1 million from $4.4 million in the same period last year. Gross margin was 59.7% compared to 61.2% in the prior year period.

Income from operations increased 214.3% to $4.7 million from $1.5 million in the prior year period. Operating margin increased to 34.8% from 21.0% in the prior year period.

In the first quarter of 2010, the Company and a consulting firm, which provided business advisory and private placement services to the Company, signed a Settlement and Release Agreement to resolve all remaining issues between them. As part of this agreement the Company incurred a one-time, non-cash settlement expense during the first quarter of $0.4 million.

Net income increased 113.6% to $2.8 million from $1.3 million in the same period last year. Diluted earnings per share increased 85.8% to $0.16 from $0.09 in the same period last year adjusted net income, excluding the impact of the aforementioned one-time, non-cash settlement expense was $3.3 million, or $0.19 per diluted share.

Financial Condition

As of September 30, 2010, the Company had accounts receivable of $4.7 million compared to $2.0 million as of December 31, 2009. The 131.8% increase is primarily due to Dalian Dongtai's increase in sales as its customers ramped up their production levels and produced more waste and Dongtai Organic, which had service fees due from the local government for sludge treatment services rendered and sales of methane gas. .

As of September 30, 2010, the Company had cash and cash equivalents of $4.6 million compared to $11.4 million as of December 31, 2009. The decrease is mainly due to the repayment of bank loans. As of September 30, 2010, the Company had a working capital surplus of $2.6 million compared to a surplus of $1.7 million as of December 31, 2009. During the first nine months of 2010, operating cash flow was $2.7 million versus $0.1 million in the prior year period.

Recent Developments

• In October, 2010, the Company announced Dalian Dongtai was designated as the sole provider of dismantling, processing and recycling services for discarded domestic appliances for Dalian City, and one of four licensed providers of these services in Liaoning Province under the Discarded Domestic Appliance Recycling Program (the "Appliance Recycling Program"), which is sponsored by the PRC ministries of Commerce, Treasury, and Environmental Protection. The Appliance Recycling Program began in August 2010 in Dalian and runs through the end of December 2011. As a result of its designation and participation in this program, the Company expects to generate $2 million in revenues over the program's 17-month duration.

• In August 2010, the Company's Dongtai Organic sewage sludge treatment facility in Dalian, Liaoning Province, which utilizes anaerobic fermentation to generate clean energy methane gas, was voted "Best Sewage Sludge Process Application of China" at the 2nd Water Specialist Conference which was held in Shanghai on August 31, 2010.

• In August 2010, Dalian Dongtai signed a waste management cooperation contract with Dalian Onoda Cement Co., Ltd. to process industrial waste utilizing Dalian Onoda's cement kiln. Dalian Onoda Cement Co., Ltd is a cement production venture owned by Taiheiyo Cement Co., Ltd., a leading multinational cement producer in Japan. The current hazardous waste management capacity of the facilities operated by Dalian Dongtai is 56,000 tons per year. Through its cooperation with Dalian Onoda, the Company expects Dalian Dongtai to be able to increase its current hazardous waste management capacity by 36% or 20,000 tons per year immediately and by 125% to 143% or 70,000 to 80,000 tons per year within the next five years.

• In August 2010, China Industrial Waste Management signed a major waste management contract with a national petrochemical firm located in Liaoning Province (the "Customer"). Under the terms of the contract, beginning on September 1, 2010, Dalian Dongtai will treat and dispose of the industrial waste sludge and slag generated by the Customer's production over the next 30-months, which the Customer estimates will total approximately 40,000 tons. Based on this expected volume, Dalian Dongtai anticipates it will generate an additional $3.65 million in revenues from this Customer over the life of the 30-month contract.

• In July 2010, China Industrial Waste Management was approached to lead the oil waste management operation following China's largest recorded oil spill off the coast of Dalian City. The Company was asked to handle oil waste generated by the effort, including oil skimmed off the ocean surface and oil-saturated equipment and refuse such as used absorption felts.

• In July 2010, the Company received a government subsidy of RMB 5 million (approximately $0.7 million) to complete its capacity expansion project for a centralized hazardous waste treatment facility (the "Expansion Project") in Dalian, Liaoning Province, China. This subsidy is the second installment of a series to be disbursed by the government as the Expansion Project progresses.

Business Outlook

The Company's Dalian Dongtai subsidiary is currently building one of the most advanced one-stop service centers for industrial solid waste treatment in China (the "Expansion Project"). The construction of this Expansion Project is now 80% complete and we expect it to become operational in the second quarter of 2011. Once fully ramped up, this new facility will provide Dalian Dongtai with 114,000 tons per annum of industrial solid waste treatment capacity, which is double the capacity of the current plant.

The Company's Dongtai Organic operates the first BOT (Build-Operate-Transfer) plant in China using anaerobic fermentation technology. This is a build-operate-transfer or 'BOT' project with a 20-year franchise period. During this period, this sludge-to-energy plant is expected to dispose of the sludge derived from all of the sewage treatment plants located in urban Dalian City. This plant has a designed capacity of 600 tons per day and is expected to generate approximately 11,000 cubic meters of methane gas once it reaches its full capacity, which is expected to happen within two years. As a first-mover in this space in China and having Dongtai Organic function as a demonstration project in Dalian, the Company is well positioned to promote our sludge treatment facility engineering business across the country. The Company's expertise is in-line with the Chinese government's goal of encouraging sustainable and environmentally friendly development.

Mr. Dong concluded, "We are optimistic about our prospects. The environmental protection industry in China is growing faster than China's overall rapid GDP growth rate and we are an industry leader in this rapidly developing industry. Our Dalian Dongtai business has a strong track record of developing and operating industrial waste treatment systems with over 770 customers, including major multinational companies. From our dominant position in Dalian, a major industrial center that is a hub for shipbuilding and other heavy industries, we intend to continue to build out our environmentally-conscious waste processing capabilities and look forward to doubling our capacity in this area with our new Expansion Project which we expect to come online next year.

"We have focused our efforts on developing next generation solutions for China's waste challenges, including a state-of-the-art anaerobic sludge treatment facility operated by Dongtai Organic. We anticipate that the Dongtai Organic facility will continue to positively contribute to our financial performance as the project approaches full capacity. In addition, we are actively seeking new opportunities to utilize our expertise in this area to lead similar projects in other regions of China."

Conference Call

The Company will host a conference call at 9:00 a.m. Eastern Time on Monday, November 15, 2010, to discuss its financial results for the third quarter of 2010.

To participate in this live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: +1 (877) 331 - 5105. International callers should dial +1 (631) 865 - 5293. The Conference Pass Code is 23560177.

If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Monday, November 15, 2010, at 10:00 a.m. Eastern Time. To access the replay, call (800) 642-1687. International callers should call +1 (706) 645-9291. The Conference Pass Code is 23560177.

Use of Adjusted Financial Measures

GAAP results for the nine months ended September 30 , 2010 include a one-time non-cash charge related to the Company's settlement expense. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided adjusted financial information excluding the impact of this item in this release. It is a departure of U.S. GAAP, however, the Company's management believes that this adjusted measure provides investors with a better understanding of how the results relate to the Company's historical performance. A reconciliation of the adjustments to GAAP results appears in the table accompanying this press release. This additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies.

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dalian Dongtai") and other indirect subsidiaries. Dalian Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dalian Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (www.chinaciwt.com).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

SOURCE China Industrial Waste Management, Inc.

Company Contact -- Mr. Darcy Zhang, Director of Investor Relations, +86-411-8259-5339, or darcy.zhang@chinaciwt.com; or at CCG Investor Relations -- Mr. Athan Dounis, Account Manager, +1-646-213-1916, or athan.dounis@ccgir.com

Source: PR Newswire (November 15, 2010 - 7:03 AM EST)

    Second Quarter Highlights
    -- Revenues increased 100.8% to $4.9 million compared to the second
       quarter of 2009
    -- Gross profit increased 93.9% to $3.1 million
    -- Operating income increased 242.6% to $1.8 million
    -- Operating margin increased to 37.3% from 21.9%
    -- Net income increased 178.3% to $1.2 million, or $0.07 per diluted share,
       compared to $0.4 million, or $0.03 per diluted share for the same
       period last year
    -- Operating cash flow was $0.9 million versus negative cash flow from
       operations of $1.0 million in the prior year period
    -- New solid waste treatment facility ("Expansion Project"), which will
       double existing capacity, is 70% complete and scheduled to open by the
       fourth quarter of 2010

"China Industrial Waste Management had a strong second quarter as we again delivered robust growth with strong increases in revenue and earnings," said Mr. Jason Dong, Chief Executive Officer. "Sales continued to rise as our customers increased their manufacturing production in the wake of the global recovery. Our Dongtai Organic business remained a meaningful contributor to our revenues, and our sales and margins for recycled commodities grew in an environment where prices were significantly higher than last year. We are pleased with our performance and believe it is a testament to the high level of services we provide for our customers and our leadership position in the fast growing industrial waste management market in China."

Second Quarter 2010 Results

For the three months ended June 30, 2010, revenues were $4.9 million compared to $2.5 million in the same period last year, an increase of 100.8%.

Revenues from service fees, which consist of service fees generated from industrial solid waste treatment, sewage treatment and sludge treatment, were $3.2 million, or 65.5% of revenues, compared to $1.6 million, or 67.0% of revenues, in the same period last year. The 96.4% increase in revenues from service fees is mainly attributable to an increase in the Company's solid waste treatment business, as production volumes from the Company's industrial customers continue to recover from the lows of early 2009 and sales from Dongtai Organic, the Company's sludge treatment business, which began generating revenues in the first quarter of 2010. Dongtai Organic generated $1.0 million in revenues in the second quarter of 2010.

Sales of recycled commodities were $1.7 million, or 34.5% of revenues, compared to $0.8 million, or 33.0% of revenues, in the same period last year, representing an increase of 109.5%. As China's economy continues to recover from the global recession, prices for many raw materials have been increasing gradually, including for Dalian Dongtai's main products, cupric sulfate, iron, plastic and nonferrous metal. To capitalize on this situation, Dalian Dongtai has selectively sold some of its recycled commodities, including commodities that had been inventoried during 2009 due to the then prevailing low sales prices.

Gross profit was $3.1 million compared to $1.6 million in the same period last year, an increase of 93.9%. Gross margin was 62.0% compared to 64.2% last year. The 220 basis point decrease in gross profit margin is primarily attributable to the additional overhead imposed by sludge treatment operations, a recently-added business line which has not yet reached full capacity.

Income from operations was $1.8 million compared to $0.5 million in the prior year period, an increase of 242.6%. Operating margin increased to 37.3% from 21.9% in the prior year period. The increase in operating margin is primarily due to the Company's higher level of sales and operating leverage.

Net income increased 178.3% to $1.2 million from $0.4 million in the same period last year. Diluted earnings per share increased 141.5% to $0.07 from $0.03 in the same period last year.

First Half 2010 Results

For the six months ended June 30, 2010, revenues were $$9.0 million compared to $4.1 million in the same period last year, an increase of 121.9%. Revenues from service fees, which consist of service fees generated from industrial solid waste treatment, sewage treatment and sludge treatment, were $6.2 million, or 68.4% of revenues, compared to $2.8 million, or 69.9% of revenues, in the same period last year, an increase of 117.3%. Dongtai Organic generated $2.0 million in revenues in the first half of 2010. Sales of recycled commodities were $2.8 million, or 31.6% of revenues, compared to $1.2 million, or 30.1% of revenues, in the same period last year, representing an increase of 109.5%.

Gross profit was $5.7 million compared to $2.5 million in the same period last year, an increase of 133.1%. Gross margin was 63.5% compared to 60.5% last year. Income from operations was $3.4 million compared to $0.7 million in the prior year period, an increase of 373.0%. Operating margin increased to 37.7% from 17.7% in the prior year period.

Net income increased 188.6% to $1.8 million from $0.6 million in the same period last year. Diluted earnings per share increased 151.0% to $0.10 from $0.04 in the same period last year.

Financial Condition

As of June 30, 2010, the Company had accounts receivable of $4.9 million compared to $2.0 million as of December 31, 2009. The 140% increase is primarily due to Dongtai Organic, which had service fees due from the local government for sludge treatment services rendered and sales of methane gas and from Dalian Dongtai's increase in sales as its customers ramped up their production levels and produced more waste.

As of June 30, 2010, the Company had cash and cash equivalents of $4.8 million compared to $11.4 million as of December 31, 2009. The decrease is mainly due to the repayment of bank loans. As of June 30, 2010, the Company had a working capital surplus of $2.9 million compared to a surplus of $1.7 million as of December 31, 2009. During the first half of 2010, operating cash flow was $0.9 million versus negative cash flow from operations of $1.0 million in the prior year period.

Recent Developments

In August 2010, China Industrial Waste Management signed a major waste management contract with a national petrochemical firm located in Liaoning Province (the "Customer"). Under the terms of the contract, beginning on September 1, 2010, Dalian Dongtai will treat and dispose of the industrial waste sludge and slag generated by the Customer's production over the next 30-months, which the Customer estimates will total approximately 40,000 tons. Based on this expected volume, Dalian Dongtai anticipates it will generate an additional $3.65 million in revenues from this Customer over the life of the 30-month contract.

In July 2010, China Industrial Waste Management was approached to lead the oil waste management operation following China's largest recorded oil spill off the coast of Dalian City. The Company was asked to handle oil waste generated by the effort, including oil skimmed off the ocean surface and oil-saturated equipment and refuse such as used absorption felts.

In July 2010, the Company received a government subsidy of RMB 5 million (approximately $0.7 million) to complete its capacity expansion project for a centralized hazardous waste treatment facility (the "Expansion Project") in Dalian, Liaoning Province, China. This subsidy is the second installment of a series to be disbursed by the government as the Expansion Project progresses.

Business Outlook for 2010

Mr. Dong added, "As we enter the second half of 2010 we are proud of the progress our business has made and optimistic about the future of our company. Our core Dalian Dongtai solid waste treatment business has rebounded strongly from the lows of last year as our customers' production volumes continue to recover and we see this trend continuing at least through the end of 2010. To further bolster our capabilities in this market we are currently building one of the most advanced one-stop service centers for industrial solid waste treatment in China. The construction of this Expansion Project is now 70% complete and we expect it to become operational in the fourth quarter of this year. Once fully ramped up, this new facility will provide us with 114,000 tons per annum of industrial solid waste treatment capacity, which is double the capacity of our current plant.

"We are also excited about the prospects for our Dongtai Organic sludge treatment business. Dongtai Organic operates the first sludge treatment plant in China and uses anaerobic fermentation technology. This is a build-operate-transfer or 'BOT' project with a 20-year franchise period. During this period, this sludge-to-energy plant is expected to dispose of the sludge derived from all of the sewage treatment plants located in urban Dalian City. This plant has a designed capacity of 600 tons per day and is expected to generate approximately 11,000 cubic meters of methane gas once it reaches its full capacity, which is expected to happen within two years. The project has generated revenues for us since January 2010 from service fees paid by the local government and from the sale of methane to the Dalian Gas Company. As first movers in this space in China, we believe we are well positioned to operate other BOT projects across the country and our long-term goal is to see 30-40% of our revenues being provided by sludge treatment, a business that is characterized by stable revenues and strong cash flows and is in-line with the Chinese government's goal of encouraging sustainable and environmentally friendly development.

"Overall, as we look at our business going forward, we believe we have laid the groundwork for future growth. We have invested considerable resources in expanding our capacity and capabilities, and we are seeing the early rewards as we execute against our plan. Dongtai Organic's sludge processing facility and our soon-to-open Expansion Project are among the most advanced in China, and our other engineering projects demonstrate our considerable expertise and abilities. We believe our strong quarterly and first half results are evidence that we are on a compelling and profitable path in what we believe is a very attractive growth industry in China."

Conference Call

The Company will host a conference call at 9:00 a.m. Eastern Time on Friday, August 13, 2010, to discuss its financial results for the second quarter of 2010.

To participate in this live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: +1 (877) 331-5105. International callers should dial +1 (631) 865-5293. The Conference Pass Code is 92701295.

If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Friday, August 13, 2010, at 10:00 a.m. Eastern Time. To access the replay, call (800) 642-1687. International callers should call +1 (706) 645-9291. The Conference Pass Code is 92701295.

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dalian Dongtai") and other indirect subsidiaries. Dalian Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dalian Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

                 CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
    COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
                                 INCOME
                              (UNAUDITED)

                                 For the Three Months    For the Six Months
                                    Ended June 30,          Ended June 30,
                                   2010        2009        2010        2009

    Revenues
     Service fees              $3,226,923  $1,642,748  $6,171,481  $2,840,447
     Sales of recycled
      commodities               1,697,657     810,247   2,847,940   1,224,499
      Total revenues            4,924,580   2,452,995   9,019,421   4,064,946

    Cost of revenues
     Cost of service fees       1,228,378     370,713   2,256,871     840,876
     Cost of recycled
      commodities                 643,518     507,525   1,031,977     765,212
      Total cost of revenues    1,871,896     878,238   3,288,847   1,606,088

      Gross profit              3,052,684   1,574,758   5,730,574   2,458,858

    Operating expenses
     Selling expenses             168,680      44,756     320,304     222,071
     General and
      administrative expenses   1,044,763     993,214   2,012,857   1,518,585
      Total operating expenses  1,213,443   1,037,970   2,333,160   1,740,656

      Income from operations    1,839,242     536,787   3,397,414     718,202

    Other income (expense)
     Other income                  80,425      47,393      87,592      62,069
     Other expense               (224,229)    (94,416)   (452,552)    (79,741)
     Settlement expense                --          --    (439,821)         --
      Total other income
       (expense)                 (143,804)    (47,023)   (804,781)    (17,672)

    Net income before tax
     provision
     Tax provision                254,941      60,250     387,942     105,279
     Net income                 1,440,497     429,515   2,204,691     595,251
     Net income attributable
      to the noncontrolling
      interest                    235,305      (3,618)    390,644     (33,401)
      Net income attributable
       to the Company          $1,205,192    $433,132  $1,814,047    $628,652

     Foreign currency
      translation adjustment      183,453       8,299     184,985      (8,003)

     Comprehensive income
      attributable to the
      Company                   1,388,645     441,431   1,999,032     620,649
     Comprehensive income
      attributable to the
      noncontrolling interest     235,305      (3,618)    390,644     (33,401)
     Comprehensive income      $1,623,951    $437,814  $2,389,677    $587,247

    Basic and diluted weighted
     average shares
     outstanding
     Basic                     15,336,535  15,268,068  15,323,068  15,265,085
     Diluted                   17,594,787  15,268,068  17,549,633  15,265,085

    Basic and diluted net
     earnings per share
     Basic                          $0.08       $0.03       $0.12       $0.04
     Diluted                        $0.07       $0.03       $0.10       $0.04



                     CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
                    COMBINED AND CONSOLIDATED BALANCE SHEETS

                                                 June 30,       December 31,
                                                   2010             2009
                                                (Unaudited)       (Audited)
    ASSETS
     Current assets
     Cash and cash equivalents                  $4,830,344       $11,419,129
     Notes receivable                              135,663           335,780
     Accounts receivable, net                    4,850,576         2,021,421
     Construction reimbursement
      receivable                                   107,426           846,270
     Other receivables                              72,341            91,872
     Inventories                                 2,530,549         2,085,029
     Advances to suppliers                       1,548,968           800,694
     Deferred expense                               17,214            14,650
     Total current assets                       14,093,080        17,614,845

     Long-term equity investment                   147,460            87,900
     Property, plant and equipment, net         31,738,023        32,319,145
     Construction in progress                   12,472,166         9,123,927
     Land usage right, net of accumulated
      amortization                               1,986,633         1,994,394
     BOT franchise right                         4,128,880         4,102,023
     Certificate of deposit                             --           293,002
     Restricted cash                             3,129,244            96,707
     Other asset                                   950,461         1,074,531
     Deferred tax asset                            329,865           377,381
     Related party receivable                      235,936           234,401
      TOTAL ASSETS                             $69,211,748       $67,318,256

    LIABILITIES
     Current liabilities
     Accounts payable                           $1,203,296          $418,435
     Short-term loan                             2,949,200         6,739,038
     Tax payable                                   229,224           200,957
     Advance from customers                        629,839           544,125
     Deferred sales                                355,682           958,930
     Accrued expenses                               29,705           301,531
     Construction projects payable               2,934,195         3,932,297
     Other payable                                 170,112           235,211
     Long-term loan-current portion              2,259,825         2,245,125
     Related party payable                         383,396           380,902
     Total current liabilities                  11,144,474        15,956,551

     Long-term loan                             14,337,720        13,755,512
     Asset retirement obligation                   632,875           610,445
     Government subsidy                          5,562,442         2,464,079
     TOTAL LIABILITIES                          31,677,511        32,786,587

    EQUITY
     Stockholders' equity of the Company
     Preferred stock: par value $.001;
      5,000,000 shares authorized; none
      issued and outstanding                            --                --

     Common stock: par value $.001;
      95,000,000 shares authorized;
      15,336,535 and 15,274,035 shares
      issued and outstanding as of June
      30, 2010 and December 31, 2009,
      respectively                                  15,337            15,274


     Additional paid-in capital                  7,602,625         7,162,867
     Deferred stock-based compensation            (768,817)         (884,139)
     Accumulated other comprehensive
      income                                     2,511,278         2,326,292
     Retained earnings                          19,304,966        17,490,919
     Total stockholders' equity of the
      Company                                   28,665,389        26,111,213
     Noncontrolling interest                     8,868,848         8,420,456
      TOTAL EQUITY                              37,534,237        34,531,669

     TOTAL LIABILITIES AND EQUITY              $69,211,748       $67,318,256



                     CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
               COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (UNAUDITED)

                                             For the Six Months Ended June 30,
                                                  2010               2009

    Cash flows from operating activities:
    Net income attributable to the
     Company                                    $1,814,047           $628,652
    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
     Nontrolling interest                          390,644            (33,401)
     Depreciation                                1,033,799            590,263
     Amortization                                   33,286             21,515
     Amortization of deferred stock-based
      compensation                                 115,322                 --
     Bad debt allowance                            113,486                 --
     Stock and warrant issued for
      settlement                                   439,821                 --
     Stock issued for service                           --             15,600
     Accretion expenses                             18,314             18,055
     Government subsidy recognized as
      income                                       (14,337)           (46,940)

    Changes in operating assets and
     liabilities:
     Notes receivable                              201,011           (357,696)
     Accounts receivable                        (2,911,253)          (350,336)
     Construction reimbursement
      receivable                                   739,586                 --
     Other receivables                              19,998            (94,860)
     Inventories                                  (429,084)           (54,716)
     Advance to suppliers                         (738,292)          (211,287)
     Deferred expense                               (2,452)            16,099
     Other asset                                   124,812           (202,426)
     Deferred tax assets                            49,665                 --
     Accounts payable                              777,080           (341,317)
     Tax payable                                    26,777           (156,500)
     Advance from customers                         81,622             17,985
     Accrued expense                              (272,036)          (338,538)
     Other payable                                 (65,500)           (84,509)
     Deferred income                              (605,598)            (7,513)
    Net cash provided by (used in)
     operating activities                          940,718           (971,870)

    Cash flows from investing activities
     Investment in Xiangtan Dongtai                (58,604)                --
     Purchase of property and equipment           (246,186)          (270,787)
     Construction in progress                   (3,202,966)        (5,707,268)
     Purchase of intangible assets                  (6,873)                --
     Due from related party                             --           (234,171)
     Certificate of deposit                        293,019           (219,536)
    Net cash used in investing activities       (3,221,610)        (6,431,762)

    Cash flows from financing activities
     Repayment of construction project
      payable                                   (1,017,247)        (1,232,780)
     Proceeds from short-term loan               2,930,188          6,732,430
     Repayment of short-term loans              (6,739,433)        (3,366,215)
     Proceeds from long-term loan                1,611,604         11,468,548
     Repayment of long-term loans               (1,122,628)                --
     Cash released from escrow account                  --            750,000
     Proceeds from related party loan                   --            102,450
    Net cash provided by (used in)
     financing activities                       (4,337,516)        14,454,433

    Effect of exchange rate on cash                 29,623              1,750

    Net increase (decrease) in cash and
     cash equivalents                           (6,588,785)         7,802,552

    Cash and cash equivalents, beginning
     of period                                  11,419,129          5,710,784
    Cash and cash equivalents, end of
     period                                     $4,830,344        $13,513,336

    Supplemental cash flow information:
     Cash paid during the year for:
     Interest                                     $660,077           $231,056
     Income taxes                                 $304,778           $269,275


    For further information, please contact:

    Company Contact:
     Mr. Darcy Zhang, Director of Investor Relations
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Athan Dounis, Account Manager
     Tel:   +1-646-213-1916
     Email: athan.dounis@ccgir.com
     Web:   http://www.ccgirasia.com

DALIAN, China, Aug. 9 /PRNewswire-Asia/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board:CIWT.ob - News) ("China Industrial Waste Management" or the "Company"), a leading environmental services and solutions provider in China, today announced that the Company's 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dalian Dongtai") signed a major waste management contract with a national petrochemical firm located in Liaoning Province (the "Customer").

Under the terms of the contract, beginning on September 1, 2010, Dalian Dongtai will treat and dispose of the industrial waste sludge and slag generated by the Customer's production over the next 30-months, which the Customer estimates will total approximately 40,000 tons. Based on this expected volume, Dalian Dongtai anticipates it will generate an additional $3.65 million in revenues from this Customer over the life of the 30-month contract.

"We are pleased to announce this major contract win," said Mr. Jason Dong, Chief Executive Officer. "Our selection by this prestigious customer is a testament to our leadership position and strong reputation in Liaoning Province. We expect this contract to significantly boost our financial performance and we anticipate that this will be the first of many opportunities in the petrochemical industry."

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website ( http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the launch and successful operation of the Dongtai Organic Waste Treatment Project, the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

    Company Contact:
     Mr. Darcy Zhang
     Director of Investor Relations & Corporate Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Athan Dounis, Account Manager
     Phone: +1-646-213-1916
     Email: athan.dounis@ccgir.com
     Web:   http://www.ccgirasia.com

As previously disclosed, Dalian Dongtai Industrial Waste Treatment, Co., Ltd. embarked on the Expansion Project in July 2008. The total cost of the Expansion Project is estimated to be RMB 110 million (approximately $16.2 million), of which RMB 33 million (approximately $4.9 million), or 30%, is expected to be subsidized by the central government. Including the RMB 10 million that was disbursed to the Company in July 2009, there has now been a total of RMB 15 million in subsidies given to the Company relating to the Expansion Project.

The Expansion Project is part of the nation's hazardous waste treatment initiative that is subsidized by the central government. This facility will be one of two such plants in Liaoning Province. Management anticipates the Company will complete the construction of the remaining storage and processing facilities during the fourth quarter of 2010.

"We are very appreciative to have received the second installment of the government subsidy for our capacity expansion project in Dalian that is now 70% complete," said Mr. Jinqing Dong, the Company's Chief Executive Officer. "The facility will be state-of-the-art and feature twice the capacity of our current plant. Further, we will deliver quality services for a wider range of customers in the region to satisfy the rapidly growing demand. In conclusion, we believe that this project clearly demonstrates our capabilities to manage capital waste management engineering projects."

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website ( http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the launch and successful operation of the Dongtai Organic Waste Treatment Project, the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward- looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

    Company Contact:
     Ms. Guo Xin, Chief Financial Officer
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com

     Mr. Zhang Dazhi, Director of Investor Relations
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Athan Dounis, Account Manager
     Tel:   +1-646-213-1916
     Email: athan.dounis@ccgir.com

     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

The "Top Ten People in Dalian's Economy" award is conferred annually by the leading broadcasters in Dalian City: Dalian TV, Dalian Evening News, and Dalian People's Radio. Honorees are leaders in industry, academia and politics and play a key role in Dalian's success as a city that has grown into an important industrial center. This year, there were 14 finalists. The award was presented by the city's senior officers on January 22nd in Dalian's Radio and TV Broadcasting Hall and was broadcast on Dalian TV's Economy and Life Channel on January 31st.

Mr. Dong is the first winner from Dalian's environmental protection industry. He holds a degree in Environmental Protection from Dalian Polytechnic University and is the Chairman of the Dalian Environmental Protection Association.

"On behalf of China Industrial Waste Management and our majority owned subsidiary, Dalian Dongtai Industrial Waste Treatment Company, I am honored to receive this prestigious award," said Mr. Dong. "I believe this award reflects China's emphasis on creating a low-carbon, green technology and new energy economy. In addition, it is given in recognition of the highly-trained professionals of Dalian Dongtai and for China Industrial Waste Management's investment in tomorrow's environmental solutions. We are proud to be among the many companies in China that offer innovative approaches to help the country achieve sustainable economic and environmental solutions."

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgical products. In addition, Dongtai treats or disposes industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements are valid only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

 For more information, please contact:

 Company Contact:

 Ms. Guo Xin, CFO
 Tel: +86-411-8581-1229
 Email: hellenguo@chinaciwt.com

 Mr. Zhang Dazhi, Company Secretary
 Tel: +86-411-8259-5339
 Email: darcy.zhang@chinaciwt.com
 Web: http://www.chinaciwt.com

 CCG Investor Relations:

 Mr. Athan Dounis, Account Manager
 Tel: +1-646-213-1916
 Email: athan.dounis@ccgir.com

 Mr. Crocker Coulson, President
 Tel: +1-646-213-1915 (New York)
 Email: crocker.coulson@ccgir.com
 Web: http://www.ccgirasia.com

In accordance with the Company's franchise agreement with the local government, Dongtai Organic is entitled to process all of the sludge generated from the sewage treatment plants in the urban area of Dalian City. The Project generates revenues from two sources: (i) fees which are based on the volume of sludge processed and (ii) fees from the sale of biogas (natural gas) to the Dalian Gas Company. The Project has a designed capacity of 600 tons per day and is currently processing approximately 400 tons per day and supplying approximately 10,000 metric meters of natural gas per day. The Company anticipates the Project will reach 100% utilization within one-to-two years as more sewage treatment plants are constructed in the local area over. In addition, to help fill idle capacity, Dongtai Organic is actively seeking opportunities to process other degradable wastes, such as kitchen waste.

"We are pleased to see that the rate of biogas generation from our Dongtai Organic Waste Treatment Project is better than we initially expected," said Mr. Jinqing Dong, Chief Executive Officer. "The use of biogas (natural gas) as a supplement to the gas resources of the municipal gas network also represents a significant industry innovation in China. The successful operation of the Dongtai Organic Waste Treatment Project represents the viability and acceptance of anaerobic fermentation in China. We look forward to further promoting this technology in other cities in China as it has not just economic, but also social benefits."

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgical products. In addition, Dongtai treats or disposes industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements are valid only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

    Company Contact:
     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com
     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Athan Dounis, Account Manager
     Tel:   +1-646-213-1916
     Email: athan.dounis@ccgir.com
     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

The CCTV story covered how the clean coastal city of Dalian is helping fulfill the PRC government's pledge to reduce greenhouse gas emissions by treating sludge through China Industrial Waste Management's local Dalian Sludge Treatment Facility. The story was broadcasted during the recent United Nations Climate Change Conference in Copenhagen, Denmark.

Mr. Jinqing Dong, Chief Executive Officer of China Industrial Waste Management, was interviewed as part of the CCTV story. He discussed how the Dalian Sludge Treatment Facility functions to reduce greenhouse gas emissions and recycles biogas from sludge treatment.

"We are pleased that CCTV recognized the important role our Company's Dalian Sludge Treatment Facility is playing in reducing greenhouse gas emissions in the city of Dalian," said Mr. Dong. "This facility began operations in December 2009, and we expect its utilization rate to accelerate in the second half of 2010 as growing demand will come from sewage treatment plants which are under construction in Dalian. In the mean time, we are utilizing this facility to process the sludge from the area surrounding Dalian City as we have an agreement with the local authority."

A replay of the CCTV story can be found on Dalian Lipp Environment Energy Engineering Technology Co., Ltd., the Company subsidiary's homepage at http://english.cctv.com/...

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

    Company Contact:
     Ms. Guo Xin, CFO
     Phone: +86-411-8581-1229
     Email: hellenguo@chinaciwt.com
     Mr. Zhang Dazhi, Company Secretary
     Phone: +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Athan Dounis, Account Manager
     Phone: +1-646-213-1916
     Email: athan.dounis@ccgir.com
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

The Conference was organized by the All-China Federation of Industry and Commerce, the China New Energy Chamber of Commerce, and the Confederation of Norwegian Enterprise. Industry experts in energy efficiency from China and Norway exchanged opinions about the topic of "Sustainable Development and Business Practices". Mr. Dong presented on "Business Opportunities in the Energy Efficiency Market."

"I was very pleased to participate in the Chinese-Norwegian Business Network Conference in Beijing to discuss the important topic of business opportunities in sustainable development and energy efficiency," said Mr. Dong. "Energy consumption per unit of GDP is required to be reduced by 20% in China's 11th five-year plan, which covers the 2006 to 2010 time frame. As such, there is a large and rising demand for energy efficiency solutions from the municipal and industrial sectors in China.

"China Industrial Waste Management is well positioned to serve this market need as we are a comprehensive environmental services and solutions provider. For example, we recently established an energy efficiency center in Dalian to provide our customers with consulting services, such as energy auditing of buildings and industrial plants, energy management programs, municipal energy efficiency planning, and other related services. We look forward to further leveraging our expertise in environmental services to support sustainable development in China."

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

    Company Contact:
     Ms. Guo Xin, CFO
     Phone: +86-411-8581-1229
     Email: hellenguo@chinaciwt.com
     Mr. Zhang Dazhi, Company Secretary
     Phone: +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Athan Dounis, Account Manager
     Phone: +1-646-213-1916
     Email: athan.dounis@ccgir.com
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

    Third Quarter 2009 Highlights
    -- Operating revenue totaled $3.1 million, down 2.3% year-over-year, but
       up 27.2% sequentially
    -- Gross profit totaled $1.9 million, the same as last year, but up 20.5%
       sequentially
    -- Gross margin was 60.8%, compared to 58.4% in third quarter 2008
    -- Net income totaled $0.7 million, down 19.3% year-over-year, but up
       17.2% sequentially
    -- Basic and diluted earnings per share were $0.04
    -- Received a national subsidy of RMB 10 million (approximately $1.5
       million) for capacity expansion to complete a "Centralized Hazardous
       Waste Treatment Facility" in Dalian
    -- Closed acquisition of 65% Equity Stake in Hunan Hanyang Environmental
       Protection Science & Technology Co., Ltd.
    -- Attended the "Sino-German Workshop in Response to Climate Change
       Application of Sludge Treatment Technologies and Potential CDM
       Projects"

"Our business continues to recover from the downturn seen in the first quarter," said Mr. Jinqing Dong, the Company's Chief Executive Officer. "Our revenues and net income are up sequentially as most of our export-oriented customers are once again approaching historical production levels and increasing their demand for industrial waste management. In addition, we have devoted additional resources to developing new clients and we are beginning to see those efforts pay off as we successfully signed up several new customers during the quarter."

Third Quarter 2009 Results

During the third quarter of 2009, operating revenue was $3.1 million, down 2.3% from $3.2 million in the third quarter of 2008, but up 27.2% from the second quarter of 2009. Revenues from service fees were $2.0 million, up 23.1% from $1.7 million in the same quarter of 2008, and up 24.1% from $1.6 million in the second quarter of 2009. The year-over-year and sequential increases were primarily due to a recovery in demand for solid waste treatment from the Company's export-oriented customers as they continued to recover from the economic crisis. Sales of recycled products were $1.1 million, down 29.7% from $1.5 million the prior year, but up 33.4% from $0.8 million sequentially. The year-over-year decrease resulted from declining waste collection volumes and a decline in prices for recycled products including cupric sulfate and aluminum as a result of the economic crisis. However, as economic conditions have improved, prices for metals and other raw materials have begun to increase from their lows, as reflected by the sequential increase in revenues from the second quarter to the third quarter of 2009.

For the three months ended September 30, 2009, cost of revenue was $1.2 million, down 8.2% from $1.3 million in the same period of 2008. Gross profit was $1.9 million, almost the same as in the third quarter of 2008, but up 20.5% from $1.6 million in the second quarter of 2009. Gross margin for third quarter 2009 was 60.8%, compared to 58.4% a year ago due to the higher volume of waste treated. Gross margin for second quarter 2009 was 64.2%.

Total operating expenses for the third quarter of 2009 were $1.0 million, up 43.6% from $0.7 million in the same period last year, driven mainly by an increase in professional fees and other expenses related to the Company's status as a public company. Income from operations was $0.9 million, down 21.8% compared to $1.2 million in the same quarter of 2008, but up 46.7% from the second quarter of 2009. Operating margin in the quarter was 29.9% versus 37.3% in last year's third quarter, but improved from 25.9% in the second quarter of 2009.

Net income was $0.7 million, compared to $0.8 million in 2008. Net margin for the third quarter of 2009 was 21.5%, compared to 26.1% a year ago.

Basic and diluted earnings per share were $0.04, compared with $0.06 for the third quarter of 2008 and $0.04 for the second quarter of 2009.

Nine Months Results

Operating revenue for the first nine months of 2009 was $7.2 million, down 27.5% from $9.9 million in the same period of 2008. Cost of revenue decreased 13.5% to $2.9 million. Gross profit was $4.3 million, compared to $6.6 million in the same period of 2008. Gross profit margin for the first nine months of 2009 was 59.7%, compared with 66.2% for the same period of 2008. Net income was $1.4 million, representing an 18.8% net margin compared to $3.6 million or a 36.0% net margin in the same period last year. Basic and diluted earnings per share for the first nine months of 2009 were $0.09 compared to $0.27 in the first nine months of 2008.

Financial Condition

As of September 30, 2009, the Company had cash and cash equivalents of $8.7 million and working capital of $5.3 million. For the first nine months, the Company generated $0.4 million from operating activities. At September 30, 2009, the Company had stockholders' equity of $24.9 million compared to $23.6 million on December 31, 2008.

Recent Events

On November 4, 2009, the Company announced construction and regulatory progress related to the Build-Operate-Transfer ("BOT") municipal sludge treatment and disposal facility in Dalian, China (the "Project") that is being developed by the Company's subsidiary Dongtai Organic Waste Treatment Co. Ltd. The Company announced that six of the Project's 12 fermentation tanks are now complete and have passed examination by the Dalian Municipal Urban Construction Administration Engineering Technology Agency and that a biogas pipe network has been built.

The Company will present at the upcoming Brean Murray, Carret & Co. 2009 China Growth Conference in New York, NY on November 20, 2009.

Business Outlook

Mr. Dong added, "We expect the recovery of our business to continue through the end of this year and into next year as the global economy and our customers' export volumes continue to rebound, we devote increased resources to attracting new customers, and we continue to invest in our business. We expect the expansion of our hazardous waste management business to accelerate as a result of our Dalian Dongtai Expansion Project, which is schedule to be completed by late 2010. We also expect our results to benefit from our expansion into municipal sewage and sludge treatment BOT projects. Specifically, we expect our Dongtai Organic Waste Treatment BOT project to come online in late 2009 or early in 2010. Overall, we look forward to continued improvement in our results for the fourth quarter of 2009 and for full year 2010."

Conference Call

The Company will hold its third quarter conference call for all interested persons at 9:00 a.m. Eastern Time on Friday, November 13, 2009, to discuss its results. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 1-888-419-5570. International callers should dial +1-617-896-9871. When prompted by the operator, mention Conference Passcode 665 937 40. If you are unable to participate in the call at this time, a replay will be available for 14 days starting on November 13, 2009, at 11:00 a.m. Eastern Time. To access the replay, dial 1-888-286-8010 and international callers should dial +1-617-801-6888 and enter the passcode 539 983 73.

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For further information, please contact:

    Company Contact:
    About China Industrial Waste Management, Inc.
     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com

     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Athan Dounis, Account Manager
     Tel:   +1-646-213-1916
     Email: athan.dounis@ccgir.com

     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com




                     CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
                           CONSOLIDATED BALANCE SHEETS

                                              September 30,      December 31,
                                                  2009              2008
                                               (Unaudited)        (Audited)
    ASSETS
    Current assets
    Cash and cash equivalents                   $8,730,483        $5,714,001
    Notes receivable                                14,649                --
    Accounts receivable, net                     3,229,123         2,414,257
    Other receivables                              299,780           105,329
    Inventory                                    2,290,197         2,372,214
    Advance to suppliers                           997,714           550,931
    Deposit for business acquisition             1,464,944                --
    Prepaid  expense                                15,382            17,589
    Total current assets                        17,042,272        11,174,321

    Long-term equity investment                  2,790,874         2,794,248
    Property, plant and equipment, net          15,237,679        15,474,915
    Construction in progress                     7,004,555         5,738,271
    Land usage right, net of accumulated
     amortization                                1,779,482         1,817,427
    Escrow account                                      --           750,000
    Certificate of deposit                       1,757,933            73,287
    Other asset                                    445,456           363,343
    Related party receivable                        57,058         1,256,599
     TOTAL ASSETS                              $46,115,309       $39,442,411

     LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities
     Accounts payable                             $698,873          $780,458
     Short-term loan                             6,738,742         3,371,198
     Tax payable                                   178,397           215,240
     Advance from customers                        546,441           539,013
     Deferred sales                                925,000           972,143
     Accrued expenses                                8,202           361,111
     Construction projects payable               1,678,542         4,742,164
     Other payable                                 111,445           211,362
     Long-term loan-current portion                457,796                --
     Related party payable                         380,885           278,490
    Total current liabilities                   11,724,323        11,471,179

    Long-term loan                               3,204,564                --
    Asset retirement obligation                    529,114           502,278
    Government subsidy                           2,445,659         1,028,257
    TOTAL LIABILITIES                           17,903,660        13,001,714

    Minority interest in subsidiary              3,353,895         2,823,126

    Stockholders' equity
    Preferred stock: par value $.001;
     5,000,000
    shares authorized; none issued and
     outstanding                                        --                --
    Common stock: par value $.001;
     95,000,000 shares
     authorized; 15,274,035 and
     15,262,035 shares issued and
     outstanding as of September 30,
     2009 and December 31, 2008
     respectively                                   15,274            15,262
    Additional paid-in capital                   5,679,398         5,644,750
    Other comprehensive income                   2,274,707         2,422,167
    Retained earnings                           16,888,375        15,535,392
    Total stockholders' equity                  24,857,754        23,617,571

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                    $46,115,309       $39,442,411




                     CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                                   (Unaudited)

                                 Three Months Ended      Nine Months Ended
                                    September 30,           September 30,
                                  2009        2008        2009        2008

     Service fees              $2,039,002   1,656,080  $4,879,448  $5,430,145
     Sales of cupric sulfate      440,816     423,891     879,347   1,804,481
     Sales of  recycled
      commodities                 641,011   1,115,150   1,427,418   2,671,634
     Operating revenue          3,120,829   3,195,121   7,186,213   9,906,260

     Cost of service fees         541,971     478,550   1,452,911   1,165,466
     Cost of cupric sulfate       168,717     212,132     410,881     737,235
     Cost of recycled
      commodities                 511,382     639,923   1,034,513   1,447,399
     Costs of revenue           1,222,070   1,330,605   2,898,305   3,350,100

     Gross profit               1,898,759   1,864,516   4,287,908   6,556,160

     Operating expenses
     Selling expenses             274,692     233,783     641,066     648,886
     General and
      administrative expenses     691,709     439,021   1,818,789   1,356,797
     Total operating expenses     966,401     672,804   2,459,855   2,005,683

     Income from operations       932,358   1,191,712   1,828,053   4,550,477

     Other income(expense)
     Investment income (loss)     (30,093)     (5,494)    (89,681)    (15,946)
     Interest income                9,319      11,441       5,431      17,627
     Other income                  14,389       1,934      61,846       8,388
     Other expense                (99,361)   (168,349)   (139,872)   (170,010)
     Total other income
      (expense)                  (105,746)   (160,468)   (162,276)   (159,941)

    Net income from continuing
     operations before
     minority interest and
     income tax                   826,612   1,031,244   1,665,777   4,390,536

     Income tax expense           110,463     103,499     215,750     437,945

     Income from continuing
      operations                  716,149     927,745   1,450,027   3,952,591

     Minority interest             44,184      95,033      97,044     384,470

     Net income                  $671,965    $832,712  $1,352,983  $3,568,121

     Foreign currency
      translation adjustment       53,672     202,900    (147,460)    948,408

     Comprehensive income        $725,637  $1,035,612  $1,205,523  $4,516,529

    Basic weighted average
     shares outstanding        15,271,948  13,902,510  15,267,387  13,392,040

    Diluted weighted average
     shares outstanding        15,271,948  13,902,510  15,267,387  13,392,040

     Basic and diluted net
      earnings per share            $0.04       $0.06       $0.09       $0.27




                     CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                          For Nine Months ended September 30,
                                                  2009              2008

    Cash flows from operating activities:
     Net income                                 $1,352,983        $3,568,121
     Adjustments to reconcile net income
      to net cash
     provided by operating activities:
     provided by operating activities:              97,044           547,178
        Depreciation                               935,665           491,426
        Amortization                                51,310            28,296
        Bad debt allowance                              --             7,782
        Stock and  options issued for
         services                                   34,660           117,100
        Accretion expenses                          27,086            59,533
        Investment loss (income)                    89,681          (156,393)
        Government subsidy recognized as
         income                                    (46,944)               --

     Changes in operating assets and
      liabilities:
        Notes receivable                           (14,637)               --
        Accounts receivable                       (815,494)       (1,780,297)
        Inventory                                   80,664          (534,458)
        Other receivables                         (179,182)         (145,967)
        Advance to suppliers                      (446,709)          120,626
        Prepaid expense                              2,196                --
        Other asset                                (87,621)         (298,283)
        Escrow account                                  --          (750,000)
        Accrued expense and deferred
         sales                                    (398,997)           (7,701)
        Accounts payable                          (125,006)          680,002
        Other payable                              (99,899)               --
        Advance from customers                       7,714                --
        Tax payable                                (36,645)           31,433
     Net cash provided by operating
      activities                                   427,869         1,978,398

     Cash flows from investing activities
        Deposit for business acquisition        (1,463,722)               --
        Long-term equity investment                (87,823)               --
        Purchase of property and
         equipment                                (238,158)         (530,282)
        Construction contracts                  (1,433,045)       (5,381,376)
        Purchase of intangible assets              (23,830)               --
        Repayment from related party             1,197,860                --
        Due from related party                          --          (589,738)
        Due to related party                            --          (242,284)
        Certificate of deposit                  (1,683,280)               --
     Net cash used in investing
      activities                                (3,731,998)       (6,743,680)

     Cash flows from financing activities
        Repayment of construct project
         payable                                (3,014,586)               --
        Proceeds from short-term loans           6,733,120         3,433,235
        Repayment of short-term loans           (3,366,560)       (1,447,069)
        Proceeds from long-term loan             3,659,304                --
        Proceeds from related party loan           102,461                --
        Cash released from escrow account          750,000
        Subsidy received from government         1,463,722           405,410
        Proceeds from issuance of common
         stock                                          --         3,277,903
        Stock subscription                              --           220,000
     Net cash provided by financing
      activities                                 6,327,461         5,889,479

     Effect of exchange rate on cash                (6,850)          948,430

     Net increase in cash and cash
      equivalents                                3,016,482         2,072,627

     Cash and cash equivalents, beginning
      of period                                  5,714,001         3,260,307
     Cash and cash equivalents, end of
      period                                    $8,730,483        $5,332,934

     Supplemental cash flow information:
          Cash paid during the year for:
               Interest                           $245,523          $163,140
               Income taxes                       $329,537          $337,971
          Non-cash investing and
           financing activities:
               Common stock issuance cost             $ --          $113,000
               Contributed anaerobic
                fermentation  equipment           $292,744              $ --
               Transfer out of
                construction  in progress        $(166,761)             $ --
               Transfer of construction
                in progress to property,
                plant and equipment               $166,761              $ --
               Change in reporting entity         $276,418              $ --

The date, time and location of China Industrial Waste Management's presentation at the 2009 China Growth Conference are as follows:

    Date:       Friday, November 20, 2009
    Time:       12:20 p.m. Eastern Time in Track III
    Presenter:  Mr. Jinqing Dong, Chief Executive Officer
                Mr. Dazhi Zhang, Company Secretary
    Venue:      The Millennium Broadway Hotel
                145 West 44th Street
                New York, New York 10036

The Brean Murray, Carret & Co. 2009 China Growth Conference will be held November 19-20, 2009 at the Millennium Broadway Hotel in New York City and will feature 70 leading companies. The two-day conference consists of 25- minute presentation slots followed by 10-minute open floor Q&A sessions with institutional clients. The gathering of presenting companies, senior management and industry experts as well as institutional investors will enjoy a unique and comprehensive look at China on a global scale. In addition to each company presentation, 1x1 meetings will also be offered throughout the day.

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

    For more information, please contact:

    Company Contact:
     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com

     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Athan Dounis, Account Manager
     Tel:   +1-646-213-1916
     Email: athan.dounis@ccgir.com

     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

The Company announced that six of the Project's 12 fermentation tanks are now complete and have passed examination by the Dalian Municipal Urban Construction Administration Engineering Technology Agency and that a biogas pipe network has been built. Upon launch, the Project's 12 tanks will be able to process 600 tons of municipal sludge per day and generate 25,000 to 30,000 cubic meters of biogas per day. The biogas generated by these tanks will be distributed through the network to end-users in Dalian as a supplement to the gas currently being supplied by the municipality. Dongtai Organic can yield revenues from the sale of this biogas.

Dongtai Organic is developing the first sludge treatment plant in Dalian designed and built in the mode of a BOT project, with a 20-year operating term. The project was commenced in April 2007 and is expected to be operational in early 2010. As required by the BOT contract, the government will supply raw material (municipal sludge), and pay processing fees to Dongtai Organic. China Industrial Waste Management has a 49% ownership interest in Dongtai Organic via its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai"). The total cost for the Project is approximately RMB 129 million ($18 million), of which Dongtai's share is RMB 63 million ($9 million).

"The development of the Dongtai Organic Waste Treatment Project is an important step in China Industrial Waste Management's strategy of expanding into municipal sewage and sludge treatment BOT projects," said Mr. Jinqing Dong, the Company's Chief Executive Officer. "We believe that a well-operated BOT project will gain attention and social recognition from the local government and business community, which may, in turn, provide additional business opportunities for similar projects in China. Our returns from BOT projects are derived from fees paid by the government and sales of biogas. Such BOT projects are able to generate a steady and recurring source of income for us over a sustained period of time of between 20 and 25 years."

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the launch and successful operation of the Dongtai Organic Waste Treatment Project, the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward- looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

    Company Contact:
     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com

     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Athan Dounis, Account Manager
     Tel:   +1-646-213-1916
     Email: athan.dounis@ccgir.com

     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

Dalian Dongtai purchased 46% of the equity interest in Hunan Hanyang from Hunan Luyi Industrial Development Co., Ltd. for RMB10,620,000 (approximately $1.6 million) and 19% of the equity interest from Ms. Song Wenling for RMB4,380,000 (approximately $0.6 million).

Headquartered in Changsha, the capital city of Hunan Province, Hunan Hanyang is engaged in the business of treatment and comprehensive utilization of waste, and management and operation of waste treatment facilities. In 2006, Hunan Hanyang signed a franchise agreement with the Bureau of Environmental Protection of Hunan Province pursuant to which Hunan Hanyang has the right to construct and operate the Hazardous Waste Treatment Center of Changsha City, Hunan Province (the "Center") for 25 years upon completion of construction. The Center is one of the 55 hazardous waste treatment centers included in the Chinese government's National Construction Planning of Hazardous Waste and Medical Waste Disposal Facilities. Hunan Hanyang is also authorized to perform collection, disposal and treatment of hazardous waste generated from 10 cities in northern Hunan Province during the franchising period.

The total cost to construct the new facility is estimated to be RMB185 million (approximately $27.1 million), 60% of which, RMB110 million (approximately $16.1 million) will be subsidized by the central government. The subsidy of RMB110 million will be allocated to Hunan Hanyang by installment based on construction progress. As notified by the central government, Hunan Hanyang will receive the first installment of RMB21 million (approximately $3.1 million) upon commencement of construction. The Center will include a storage facility, an incinerator, a hazardous waste landfill, and an industrial effluent treatment facility, with a total capacity of 46,000 tons per year. The Company expects to begin construction on the Center in early 2010, and it will be operational in 2012.

"We are very excited to be acquiring a majority interest in Hunan Hanyang," said Mr. Jinqing Dong, the Company's Chief Executive Officer, "With this acquisition, China Industrial Waste Management expands its geographic footprint to central China. We believe the Hunan Province is an attractive market for industrial waste treatment given its success in attracting industries that are expanding production capacity and moving inland from the coastal regions. We expect Hunan Hanyang to benefit from the growing concentration of industry in central China and the ongoing policy of the Chinese government of encouraging long-term and sustainable development in the central regions of the country."

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit the Company's website (http://www.chinaciwt.com ).

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

   For more information, please contact:

   Company Contact:
    Ms. Guo Xin, CFO
    Tel:   +86-411-8581-1229
    Email: hellenguo@chinaciwt.com
    Mr. Zhang Dazhi, Company Secretary
    Tel:   +86-411-8259-5339
    Email: darcy.zhang@chinaciwt.com
    Web:   http://www.chinaciwt.com

   CCG Investor Relations:
    Mr. Crocker Coulson, President
    Tel:   +1-646-213-1915 (New York)
    Email: crocker.coulson@ccgir.com
    Web:   http://www.ccgirasia.com

Headquartered in Changsha, the capital city of Hunan Province, Hunan Hanyang is engaged in the business of treatment and comprehensive utilization of waste and the management and operation of waste treatment facilities. In 2006, Hunan Hanyang signed a BOT Agreement with the Bureau of Environmental Protection of Hunan Province, pursuant to which Hunan Hanyang has the right to construct and operate the Hazardous Waste Treatment Center of Changsha City, Hunan Province (the "Center") for 25 years upon completion of construction. The Center is one of fifty-five hazardous waste treatment centers included in the Chinese government's National Construction Planning of Hazardous Waste and Medical Waste Disposal Facilities. Hunan Hanyang is also authorized to perform collection, disposal and treatment of hazardous waste generated from 10 cities including Changsha, Zhuzhou, Changde, Yiyang, Xiangtan, Yueyang, Zhangjiakou, Huaihua, Loudi and Xiangxi in northern Hunan Province during the franchising period.

The total cost to construct the new facility is estimated to be RMB185 million (approximately $27.1 million), 60% of which, RMB110 million (approximately $16.1 million), will be subsidized by the central government. The subsidy of RMB110 million will be allocated to Hunan Hanyang by installment based on construction progress. The Center will include a storage facility, an incinerator, a hazardous waste landfill, and an industrial effluent treatment facility, with a total capacity of 46,000 tons per year. Management anticipates that the Center will be operational in early 2012 as it will take two years to complete the construction.

"We are pleased to acquire a 65% interest in Hunan Hanyang as this is a cornerstone for us to execute our expansion into this fast-growing region and provide advanced hazardous waste processing to the local industry," said Mr. Jinqing Dong, the Company's Chief Executive Officer. "Changsha is one of the rapidly developing cities in central China. The growing economy requires more capacity for industrial waste treatment so as to support a long-term and sustainable development. We look forward to leveraging our expertise in environmental protection to capture the growing demand in central China."

During the first six months of 2009, GDP of Hunan Province increased 12.8% year-over-year to RMB535 billion, 25% of which was contributed by Changsha, the capital city. The industry development zones in Changsha and cities nearby have attracted companies in machining, auto manufacturing, pharmaceuticals, and electronics industries, who are either expanding production capacity or moving from coastal regions to central China.

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit: http://www.chinaciwt.com .

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

    Company Contact:
     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com
     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

The Workshop was organized by the Ministry of Housing and Urban-Rural Development of the Peoples' Republic of China ("MOHURD") and the German Federal Environmental Department of Nature Conservation and Nuclear Safety. Experts from China and Germany introduced the current practice of sludge treatment in both countries and its further development in the context of Clean Development Mechanisms ("CDM").

Mr. Jun Liu, General Engineer of Dongtai Organic Waste Treatment Co., Ltd. ("Dongtai Organic"), the Company's subsidiary, introduced a sludge treatment project in Dalian, operated by Dongtai Organic. Participants of the seminar visited Dongtai Organic's sludge treatment facility. The initial six fermentation tanks are in trial production and are performing very well. Once completed, there will be 12 fermentation tanks in operation. The designed capacity of this project is 600 tons per day for sludge treatment, and 25,000-30,000 m3 per day for biogas generation.

The company's core technology of anaerobic digestion and its successful application was highly praised by representatives from MOHURD, and they recommended this technology and equipment be applied in other cities as well.

"We were pleased to have attended this seminar for an extensive discussion with experts in the sludge treatment industry," said Mr. Jinqing Dong, the Company's Chief Executive Officer. "The success of our sludge treatment project in Dalian has attracted increasing attention from domestic and overseas specialists."

Currently, a 12-km-long biogas pipe network is under construction. Management anticipates that this network will be completed by end of October 2009. The biogas generated by these 12 fermentation tanks will be distributed through the network to end-users in Dalian as a supplement to town gas.

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit: http://www.chinaciwt.com .

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

    Company Contact:
     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com
     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York) or
     Mr. Gary Chin, Tel +1-646-213-1909
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

    Second Quarter 2009 Highlights

    -- Operating revenue was $2.5 million, down 31.7% from last year
    -- Gross profit declined to $1.6 million versus $2.5 million
    -- Gross margin was 64.2%, compared to 69.6%
    -- Net income decreased 58.1% to $0.6 million
    -- Basic and diluted earnings per share were $0.04 compared to $0.10 in
       the year earlier period
    -- Established a subsidiary company, Yingkou Dongtai Industrial Waste
       Treatment Co., Ltd. to provide waste collection and transportation,
       storage and waste pre-processing for industrial users in Yingkou,
       Liaoning
    -- Appointed four independent directors and formed board committees

Second Quarter 2009 Results

During the second quarter of 2009, operating revenue was $2.5 million, down 31.7% from $3.6 million in the second quarter of 2008. Revenues from service fees were $1.6 million, down 16.0% from $2.0 million in the same quarter of 2008, but up 37.2% from $1.2 million sequentially. The decrease was primarily due to the lower demand for solid waste treatment from the Company's export-oriented customers since the global economic crisis in late 2008. Sales of recycled products were $0.8 million, down 50.5% from $1.6 million the prior year, but up 95.7% from $0.4 million sequentially. The decrease resulted from declining waste collection volumes, as well as the decline in prices for recycled products including cupric sulfate and aluminum as a result of the economic crisis.

"We are pleased to see most of our business sectors have improved since the first quarter," said Mr. Jinqing Dong, the Company's Chief Executive Officer. "Some of our customers are approaching normal production levels, and some are even expanding their production capacity. We expect that the economic recovery will continue to stimulate industrial waste treatment demand for the remainder of 2009. In addition, we are anticipating that our centralized solid waste treatment facility will be completed by the end of this year so we can better meet increasing demand from our customers."

For the three months ended June 30, 2009, cost of revenue was $0.9 million, down 19.5% from $1.1 million in the same period of 2008. Gross profit was $1.6 million, down 37.0% from $2.5 million in 2008. Gross margin for the second quarter 2009 was 64.2%, compared to 69.6% a year ago due to the lower volume of waste treated.

Total operating expenses for the second quarter of 2009 were $0.9 million, up 25.1% from $0.8 million in 2008, driven mainly by an increase in R&D expenses. Income from operations was $0.6 million, compared to $1.7 million in 2008. Operating margin in the quarter was 25.9% versus 48.7% in last year's second quarter.

As a result of the significant drop in operating revenues, net income declined 58.1% to $0.6 million from $1.4 million in 2008. Net margin for the second quarter of 2009 was 23.4%, compared to 38.2% a year ago.

Basic and diluted earnings per share were $0.04, compared with $0.10 for the second quarter of 2008.

Six Months Results

Operating revenue for the first six months of 2009 was $4.1 million, down 39.5% from $6.7 million in 2008. Cost of revenue decreased 20.5% to $1.6 million. Gross profit was $2.5 million, compared to $4.7 million in the same period 2008. Gross profit margin for the first six months of 2009 was 60.5%, compared with 70.0% for the same period 2008. Net income was $0.7 million, representing a 16.8% net margin compared to $2.7 million or a 40.9% net margin. Basic and diluted earnings per share for the first six months of 2009 were $0.05 compared to $0.21 in the first six months of 2008.

Financial Condition

As of June 30, 2009, the Company had cash and cash equivalents of $8.0 million and working capital of $1.9 million. Inventory was approximately $2.5 million on June 30, 2009 compared to $2.4 million on December 31, 2008, the majority of which consists of metals extracted during the recycling process. At June 30, 2009, the Company had stockholders' equity of $24.1 million compared to $23.6 million on December 31, 2008.

Business Outlook

The current expansion project of Dongtai, which is one of fifty-five hazardous waste treatment centers sponsored by central government and one of two centers in Liaoning province, commenced construction at the end of July 2008. The Company expects the facility to be operational in early 2010. Management believes that with the operation of the new centralized hazardous waste treatment center, coupled with continued increase in international companies relocating to Dalian, Dongtai is positioned to capitalize on this rapid environmental development in Liaoning Province.

The Company anticipates that revenues from its waste treatment, sales of waste recovery and valuable materials will continue to grow in the next year, despite the economic recession. It also anticipates that revenue generated from waste water treatment, which is based on waste water volume and guaranteed by the local government, will grow steadily as the amount of water which needs to be treated increases in the future.

"With the economic recovery in China, we expect that the industrial waste management market will increase significantly from levels seen at the beginning of this year," commented Mr. Dong. "We look forward to improved second half results as volumes for our industrial waste treatment business increase and prices for recycled products recover."

Recent Events

On July 30, the Company announced that its 90% owned subsidiary, Dalian Dongtai Industrial Waste Treatment, Co., Ltd. has received a national subsidy of RMB 10 million (approximately $1,464,129) for capacity expansion to complete a "Centralize Hazardous Waste Treatment Facility" in Dalian, Liaoning Province, China.

On August 10, the Company announced that it has completed trial production of the first 6 fermentation tanks for sludge treatment, a municipal Build-Operate-Transfer project in Dalian. Results of the trial production show that the facility can generate stable biogas as well.

Conference Call

The Company will hold its second quarter conference call for all interested persons at 9:00 a.m. Eastern Time on Tuesday, August 18, 2009 to discuss its results. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 1-888-419-5570. International callers should dial +1-617-896-9871. When prompted by the operator, mention Conference Passcode 603 086 07. If you are unable to participate in the call at this time, a replay will be available for 14 days starting on August 18, 2009 at 11:00 a.m. Eastern Time. To access the replay, dial 1-888-286-8010 and International callers should dial +1-617-801-6888 and enter the passcode 391 519 27.

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information, please visit: http://www.chinaciwt.com .

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital. Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

                             - FINANCIAL TABLES FOLLOW -



                     CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
                           CONSOLIDATED BALANCE SHEETS

                                                  June 30,       December 31,
                                                    2009             2008
                                                (Unaudited)       (Audited)
    ASSETS
    Current assets
    Cash and cash equivalents                    $7,950,100       $5,714,001
    Notes receivable                                357,822               --
    Accounts receivable, net                      2,761,994        2,414,257
    Other receivables                               207,979          105,329
    Inventory                                     2,498,498        2,372,214
    Advances to suppliers                           746,297          550,931
    Deferred expense                                 16,105           17,589
    Total current assets                         14,538,795       11,174,321

    Investment                                    2,731,477        2,794,248
    Property, plant and equipment, net           15,427,251       15,474,915
    Construction in progress                      6,329,944        5,738,271
    Land usage right, net of accumulated
     amortization                                 1,790,195        1,817,427
    Escrow account                                       --          750,000
    Certificate of deposit                          292,817           73,287
    Other asset                                     418,187          363,343
    Related party receivable                         27,743        1,256,599
    TOTAL ASSETS                                $41,556,409      $39,442,411

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities
    Accounts payable                               $784,666         $780,458
    Short-term loan                               6,734,795        3,371,198
    Tax payable                                      58,556          215,240
    Advance from customers                          556,397          539,013
    Deferred sales                                  963,531          972,143
    Accrued expenses                                 11,203          361,111
    Construction projects payable                 3,026,140        4,742,164
    Other payable                                   121,829          211,362
    Related party payable                           378,600          278,490
    Total current liabilities                    12,635,717       11,471,179

    Asset retirement obligation                     519,773          502,278
    Government subsidy                              980,141        1,028,257
    TOTAL LIABILITIES                            14,135,631       13,001,714

    Minority interest in subsidiary               3,307,719        2,823,126

    Stockholders' equity
    Preferred stock: par value $.001;
     5,000,000 shares authorized; none
     issued and outstanding                              --               --
    Common stock: par value $.001;
     95,000,000 shares authorized;
     15,271,035 and 15,262,035 shares
     issued and outstanding at June 30,
     2009 and December 31, 2008
     respectively                                    15,271           15,262
    Additional paid-in capital                    5,660,341        5,644,750
    Other comprehensive income                    2,221,035        2,422,167
    Retained earnings                            16,216,412       15,535,392
    Total stockholders' equity                   24,113,059       23,617,571

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                     $41,556,409      $39,442,411




                     CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                                   (Unaudited)

                             Three Months Ended          Six Months Ended
                                  June 30,                   June 30,
                             2009           2008         2009         2008

    Service fees         $1,642,748     $1,954,513   $2,840,447   $3,774,065
    Sales of cupric
     sulfate                347,400        671,747      438,530    1,380,590
    Sales of recycled
     commodities            463,286        964,599      786,407    1,566,484
    Operating revenue     2,453,434      3,590,859    4,065,384    6,721,139

    Cost of service fees    370,713        315,881      840,876      686,916
    Cost of cupric
     sulfate                154,187        238,577      242,164      525,103
    Cost of recycled
     commodities            353,420        536,944      523,131      807,476
    Costs of revenue        878,320      1,091,402    1,606,171    2,019,495

    Gross profit          1,575,114      2,499,457    2,459,213    4,701,644

    Operating expenses
    Selling expenses         44,691        187,022      222,008      415,103
    General and
     administrative
     expenses               894,786        563,930    1,341,507      917,776
    Total operating
     expenses               939,477        750,952    1,563,515    1,332,879

    Income from
     operations             635,637      1,748,505      895,698    3,368,765

    Other income(expense)
    Investment income
     (loss)                 -18,640         -1,413      -59,589      -10,452
    Interest income          -5,159           -112       -3,888        6,186
    Other income             47,410            574       47,457        6,454
    Other expense            23,049         -1,659      -40,511       -1,661
    Total other income
     (expense)               46,660         -2,610      -56,531          527

    Net income from
     continuing operations
     before minority
     interest and
     income tax             682,297      1,745,895      839,167    3,369,292

    Income tax expense       60,257        227,216      105,287      334,446

    Income from
     continuing
     operations             622,040      1,518,679      733,880    3,034,846

    Minority interest        48,536        148,887       52,860      289,437

    Net income             $573,504     $1,369,792     $681,020   $2,745,409

    Foreign currency
     translation
     adjustment            -181,925        155,554     -201,132      745,508

    Comprehensive income   $391,579     $1,525,346     $479,888   $3,490,917

    Basic weighted
     average shares
     outstanding         15,268,068     13,234,434   15,265,085   13,234,434

    Diluted weighted
     average shares
     outstanding         15,268,068     13,234,434   15,265,085   13,234,434

    Basic and diluted
     net earnings
     per share                $0.04          $0.10        $0.05        $0.21



                     CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                    For the Six Months Ended
                                                            June 30,
                                                      2009            2008

    Cash flows from operating activities:
    Net income                                      $681,020      $2,745,409
    Adjustments to reconcile net income to net
     cash provided by operating activities:
    Minority interest                                 52,860       1,219,099
    Depreciation & Amortization                      615,399         375,706
    Bad debt allowance                                    --           6,701
    Stock issued for services                         15,600         117,100
    Accretion expenses                                18,055          39,722
    Loss on equity investment                         62,771        -111,440
    Government subsidy                               -48,116         402,916

    Changes in operating assets and
     liabilities:
    Accounts receivable                             -347,737      -1,495,466
    Note receivable                                 -357,822              --
    Inventory                                       -126,284        -436,565
    Other receivables                               -102,650         -95,489
    Advance to suppliers                            -195,366      -1,007,316
    Accrued expense and deferred sales              -358,521         109,736
    Accounts payable                                   4,208         714,043
    Tax payable                                     -156,684         -39,446
    Others                                          -105,372              --
    Net cash provided by (used in) operating
     activities                                     -348,639       2,544,710

    Cash flows from investing activities
    Purchase of property and equipment               -65,563        -523,265
    Construction contracts                          -830,143      -3,156,825
    Purchase of software                             -20,137              --
    Due from related party                         1,228,856        -309,335
    Due to related party                             100,110        -201,661
    Certificate of deposit                          -219,530        -491,861
    Net cash provided by (used in) investing
     activities                                      193,593      -4,682,947

    Cash flows from financing activities
    Repayment of construction projects payable    -1,716,024              --
    Proceeds from loans                            6,732,430       3,433,235
    Repayment of short term loan                  -3,366,215              --
    Net cash provided by financing activities      1,650,191       3,433,235

    Cash released from escrow account                750,000              --
    Effect of exchange rate on cash                   -9,046         629,020

    Net increase in cash and cash equivalents      2,236,099       1,924,018

    Cash and cash equivalents, beginning of
     period                                        5,714,001       3,260,307
    Cash and cash equivalents, end of period      $7,950,100      $5,184,325

    Supplemental cash flow information:
    Cash paid during the year for:
    Interest                                        $106,911         $89,107
    Income taxes
                                                     $60,258             $--

    Non-cash investing and financing
     activities:
    Contributed anaerobic fermentation
     equipment                                     $(292,701)            $--
    Transfer out of construction in progress
                                                    $288,536             $--
    Transfer of construction in progress to
     property, plant and equipment                 $(288,536)            $--
    Change in reporting entity                      $276,253             $--


    For more information, please contact:

    Company Contact:
     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com
     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    CCG Investor Relations:
     Mr. Crocker Coulson, President
     Tel:   +1-646-213-1915 (New York) or
     Mr. Gary Chin
     Tel:   +1-646-213-1909
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

DALIAN, China, May 12 /PRNewswire-Asia/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT - News), a PRC-based industrial waste processor and provider of environmental protection, pollution treatment and waste management design, announced today that the Board of Directors has established an Audit Committee consisting of three directors and Mr. Henry Wong has been appointed to serve as Chairman of the Committee.

Mr. Wong commented, "The formation of Audit Committee demonstrates management's commitment to implement the best practice of Corporate Governance. We are committed and will strive to achieve sound managerial control and carry out the Audit Committee's functions effectively and efficiently."

Other directors appointed to the Committee are Mr. Francis Leong and Mr. Chunyou Wu. The Audit Committee is comprised of three independent directors.

"We are very pleased to have Henry as Chairman of the Board's Audit Committee. We are confident that his experience will provide valuable knowledge in financial controls and corporate governance," stated Mr. Jinqing Dong, Chairman and CEO of China Industrial Waste Management.

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services.

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital.

Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com

     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

     Investors Contact:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternation...

Mr. Henry Wong, age 39, has over 16 years of experience in finance, internal controls and auditing. He has served as an internal auditor for Xinhua Finance Media Ltd., a NASDAQ listed company, since September 2007. From 2004 to 2007, he served as a senior manager at PricewaterhouseCoopers Zhong Tian CPAs Ltd.'s division in China. From 2002 to 2003, Mr. Wong was the internal audit manager of the Hong Kong and China Gas Company Limited. From 1993 to 2002, he worked as a staff auditor at Deloitte & Touche Corporate Finance Limited and Deloitte & Touche Tohmatsu Hong Kong. Mr. Wong holds a bachelor's degree in accounting from the City University of Hong Kong and a master's degree in E-commerce from the Open University of Hong Kong. Mr. Wong is also a member of the Association of Chartered Certified Accountants, a member of the Hong Kong Institute of Certified Public Accountants and a Certified Internal Auditor.

Mr. Francis Leong, age 65, has over 30 years of experience in financing and public service industry. He has been a financial consultant of Sungai River Inc., an international financial consulting company, since October 2003. During his distinguished career in public finance, Mr. Leong has served in various positions as Finance Officer for the City of Calgary, Alberta, as well as its Controller of Transit Transportation, Waterworks, Sanitary and Storm Sewers, Assistant Controller of Electric Systems and as its City Treasurer and General Manager of Finance. Mr. Leong holds a Bachelor's degree in Communications and a Master's degree in Public Administration. In addition to serving as a board director of China Industrial Waste Management, Mr. Leong serves as a Director on the Board of two Toronto Stock Exchange - Venture Board publicly listed companies, i.e., Grand Power Logistics (GPW) and Boyuan Construction Group Inc (BOY).

Mr. Long Zhang, age 35, has worked as an attorney for 12 years with a focus in finance, credit, real-estate, and domestic/overseas investment. He was involved in several enterprises going public abroad and has experience in the global capital markets. Mr. Zhang holds a Bachelor's degree in Law. He is a registered attorney in China and the principal of Zhang Long Law Firm.

Professor Chunyou Wu, age 63, has over 30 years of professional experience in mechanics and management. He has been employed as a professor of Business Administration at the Dalian University of Technology since 1992. He also serves an independent director and member of the compensation committee of Dalian Thermal Power Company in Dalian, China. Mr. Wu completed his studies at the Tsinghua University School of Economics and Management and Dalian University of Technology.

"We warmly welcome Henry, Chunyou, Francis and Long to our Board of Directors. With their extensive experience in their focused areas, they bring unparalleled financial and industry expertise to CIWT and will add great value to our organization," Mr. Jinqing Dong, Chairman and CEO of China Industrial Waste Management, commented. "We are committed to maintaining strong corporate governance and believe that the proper oversight and strategic planning capabilities afforded by our board will help us to effectively capitalize on our growth potential while creating incremental shareholder value."

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial wastes, and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services.

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital.

Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

For more information, please contact:

    Ms. Guo Xin, CFO
    Tel:   +86-411-8581-1229
    Email: hellenguo@chinaciwt.com

    Mr. Zhang Dazhi, Company Secretary
    Tel:   +86-411-8259-5339
    Email: darcy.zhang@chinaciwt.com
    Web:   http://www.chinaciwt.com

    Investors Contact:
    Mr. Matthew Hayden, HC International
    Tel:     +1-561-245-5155
    Email:   matt.hayden@hcinternational.net
    Web:     http://www.hcinternational.net

DALIAN, China, April 29 /PRNewswire-Asia/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT - News), a PRC-based industrial waste processor and provider of environmental protection, pollution treatment and waste management design, announced today that it has engaged Shanghai Union Strength Business Consulting Co., Ltd. ("Union Strength"), to provide certain financial consulting services including assisting the Company with its compliance with Section 404 of the Sarbanes-Oxley Act of 2002 ("SOX").

Under the agreement, Union Strength will provide, among other things, SOX compliance consulting services to CIWT, such as assisting the Company in the documentation of its internal controls over financial reporting and disclosure, providing recommendations for improvement, and training Company management on the requirements of the SOX.

"We are pleased to announce the engagement of Union Strength in our efforts to reach compliance with SOX," Mr. Jinqing Dong, Chairman and CEO of China Industrial Waste Management, commented. "We are committed to improving our disclosure controls and practices and providing our shareholders with higher quality financial reporting. Improved internal controls should also enable our company to continue to strengthen its operations and business practices."

About Union Strength

Founded in July 2002, Shanghai Union Strength Business Consulting Co. is dedicated to business leaders who are aiming to maximize the value of China economic pattern and to upgrade its accountability. Its major services include Financial Advisory, Risk Management and Corporate Finance. Union Strength is the first independent IPO Advisory and Risk Management consulting firm in China that has successful experience with listing at NYSE, Amex, Nasdaq, HKEX and SGX. Union Strength is China's first independent SOA compliance consulting firm, ever since 2002 upon the inaction of Sarbanes Oxley Act. In Addition, it is the publisher of the first SOA compliance manual in Chinese. It has extensive experience in internal control and has accomplished nearly 50 successful SOX compliance cases in China. For more information about Union Strength, please visit http://www.unionstrength.com.cn .

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc. is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian and surrounding areas in Liaoning Province, People's Republic of China through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai") and other indirect subsidiaries. Dongtai treats, disposes of and/or recycles many types of industrial waste and recycled waste products used by customers as raw material to produce chemical and metallurgy products. In addition, Dongtai treats or disposes of industrial waste through incineration, burial or water treatment, and provides environmental protection services, technology consultation, pollution treatment services, waste management design processing services, waste disposal solutions, waste transportation services, onsite waste management services, and environmental pollution remediation services. For more information about China Industrial Waste Management, Inc., please visit http://www.chinaciwt.com .

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital.

Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com

     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    Investors Contact:

     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternational.net

DALIAN, China, April 1 /PRNewswire-Asia-FirstCall/ -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT - News), an industrial waste processor and provider of environmental protection, pollution treatment and waste management design services in the People's Republic of China ("PRC"), today announced its Fiscal 2008 financial results ended December 31, 2008.

Fourth Quarter Ending December 31, 2008 Financial Results

CIWT announced record revenue for its fourth quarter of $3.5 million, representing a 13.9% increase from $3.1 million recorded in the fourth quarter of 2007.

Gross profit in the fourth quarter of 2008 was $2.7 million, representing an 11.6% increase from $2.4 million in the fourth quarter of 2007, primarily attributable to the increase in higher margin service fee revenues.

Gross margins were 77% in the fourth quarter of 2008, compared to 78.6% in the fourth quarter of 2007.

Operating expenses were $1.5 million and operating income was $1.2 million in the fourth quarter of 2008, compared to $1.6 million in operating expenses and $0.8 million in operating income in the fourth quarter of 2007.

Net income for the quarter was $1.2 million, down 21.3% from net income of $1.5 million reported in the same year ago period. The decrease in net income was related to a significant decrease of price of copper and copper compounds which are sold as a product of recycling process.

Diluted earnings per share were $0.08 for the fourth quarter of 2008, compared to $0.12 in the fourth quarter of 2007, utilizing 14,873,279 shares and 13,220,843 shares respectively, with the increase in shares resulting from the fourth quarter private placement.

Year Ending December 31, 2008 Financial Results

For the fiscal year ended December 31, 2008, CIWT announced record revenue of $13.4 million, a 40.5% increase from the $9.5 million reported for the prior year period. Increased service fees supported by a broader customer base and increased demand from existing customers were the principal drivers of this year over year growth. Service fees were $8.2 million and represented 61% of total revenue from the year ended December 31, 2008, compared to $5 million or 52.5% of total revenue for the year of 2007. Dongtai Water contributed approximately $0.5 million as a result of increased service fees vs. 0 in 2007 when it was in construction. Sales of cupric sulphate were $1.8 million or 13.5% of total revenue in 2008, which is slightly less than that of 2007. Sales of recycled products increased 25.6% to $3.4 million or 25.5% of total revenue in 2008, from $2.7 million or 28.5% of total revenue in 2007.

Gross profit was $9.2 million yielding gross margins of 69%, compared to $6.8 million in gross profit and a gross margin of 70.9% for fiscal year of 2007. The increase in gross profit was primarily attributable to the growth in revenue and stringent control of costs related to providing services, while margins were impacted by price decrease of copper or copper related products in late 2008 due to the global recession.

Operating expenses for fiscal year 2008 were $3.5 million, which represents a decrease of 1.6% from $3.6 million, compared to the same period in 2007. In 2007, the Company settled certain legal proceedings and incurred an associated charge of approximately $0.9 million. Excluding this non-operating item, operating expenses for 2008 increased by $0.8 million compared to 2007, resulting from the business expansion, personnel addition, and increased investment in marketing activities and public market expenses.

Operating income totalled approximately $5.7 million, an 80.4% increase from the $3.2 million reported for fiscal year 2007. Operating margins were 42.6% and 33.1% for the fiscal year 2008 and 2007, respectively, and benefited from leverage in the business model and prudent cost controls as it relates to operating expenses.

For fiscal 2008, net income was approximately $4.8 million, an increase of 28.9% from $3.7 million recorded for fiscal 2007. Diluted earnings per share were $0.35 in 2008, compared to $0.28 in 2007, based on 13.8 million and 13.2 million shares for 2008 and 2007, respectively. This increase in outstanding shares was related to the capital raise completed in October 2008.

The income tax was $0.66 million compared with 2007's figure of 0, while the effective tax rate was 11% in 2008.

On December 31, 2008 the Company had 15,262,035 shares outstanding.

Balance Sheet and Cash Flow Statement:

Cash and cash equivalents totalled $5.7 million on December 31, 2008 compared to $3.3 million on December 31, 2007. Trade account receivables increased to approximately $2.4 million on December 31, 2008, from $0.6 million on December 31, 2007 related primarily to revenue growth. Days of sales outstanding for 2008 were 66 days. Inventory was approximately $2.4 million on December 31, 2008 compared to $1.3 million on December 31, 2007, the majority of which consists of metals extracted during the recycling process. Due to a sharp decline in the market price of copper and copper related products, management determined it would be more advantageous to hold inventory until prices improved. Government subsidy was approximately $1 million and recorded as "other long-term liabilities" in third quarter's financial statement. According to US GAAP, subsidies are recognized over the useful lives of the related asset upon the completion and acceptance of the government subsidized project. Shareholders' Equity on December 31, 2008 was $23.6 million, represented a book value of approximately $1.54 per share based on 15.3 million shares outstanding. Net cash provided by operating activities for fiscal 2008 was $4.9 million.

"We are very pleased with our strong financial performance in 2008 in spite of the global recession with growth emanating from increased demand through a larger base of both existing and new customers, in addition to contributions from our municipal waste water treatment facility which came online in June 2008. 2008 was a key inflection point for our Company as we successfully completed a $4 million private placement through the issuance of common equity and warrants to institutional and accredited investors," commented Mr. Jinqing Dong, Chairman and CEO of China Industrial Waste Management. "Our overall strategy to provide the most comprehensive suite of services available to an expanded customer base proved to be successful as evidenced by the 40.5% increase in revenues for 2008," Mr. Dong further elaborated.

Business Development

Zhuorui Resource Recycling Co., Ltd., the Company's indirect majority-owned subsidiary, provides plasma arc melting, separation and purification of waste catalysts and treatment of industrial wastes. Valuable metals are extracted from the waste catalyst and sold while leftover slag is utilized to make cement. Zhuorui is in the final stage of the testing process and it is expected to come online in 2009 and be a meaningful contributor to future revenue growth.

Dongtai Organic Waste Treatment has entered into testing stage in mid-March and expected to commence commercial operations in the second quarter of 2009. In full capacity, the unit is expected to generate approximately $1.1 million in quarterly revenue including processing fees from the local government and sales of methane and fertilizer with gross margin of approximately 25%.

CIWT won an open tender offered by Anshan Iron & Steel Group to process waste generated by its Angang Steel Subsidiary and Bayuquan Steel Subsidiary in February, 2009 and recently finalized the contract. CIWT will provide incineration and landfill services for hazardous waste generated at these two facilities under an initial one-year term with the opportunity for future contract renewals. The waste will be processed at CIWT's SEPA certified waste incineration facility and waste landfill site located in Dalian. Since the contract was signed, CIWT has made four collections of hazardous waste from Anshan and anticipates this win will help facilitate new business from other steel producers.

"The growth of the environmental protection industry in China remains robust and is supported by Chinese government which is implementing new policies and regulations to improve China's overall environment, both under the 5-Year Plan and the recently passed $586 Billion Stimulus Plan, which includes the commissioning and construction of over a thousand new municipal wastewater treatment facilities throughout China in the coming few years. We continue to seek new BOT projects and have identified several new projects which could provide long-term and recurring revenue stream. We are excited about the Company's growth prospects in 2009, including new sludge treatment facility coming online and new product opportunities through our partnership with LIPP, as we view this particular component of wastewater management as being the most underserved currently. We are also seeing positive trends in the price of copper and copper compounds and we expect to reduce our inventories while capitalizing on high margin revenue during 2009. Backed by a dedicated management team, possessing strong operating and technical experience in waste treatment business, in addition to enhanced service and marketing efforts, we believe we are well positioned to capitalize on the significant long-term growth opportunity in the environmental protection industry," Mr. Dong concluded.

Conference Call Information:

The conference call will take place at 10:30 a.m. EDT on Wednesday, April 1, 2009. Interested participants should call +1-480-629-9031 and the conference ID is 4045893. This call is being web cast and can be accessed at the following link: http://viavid.net/dce.aspx?sid=000060FC .

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc., through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd., is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian, China and surrounding areas in Liaoning Province. The Company provides waste disposal solutions to its more than 650 customers from facilities located in the Economic and Technology Development Zone, Dalian, PRC. Dalian Dongtai treats, disposes of and/or recycles a variety of industrial wastes through incineration, burial and/or water treatment, and recycles, processes and/or resells waste products for use as raw materials in the production of chemical and metallurgy products. In addition, Dalian Dongtai provides environmental protection services, technology consultation, pollution treatment services, and waste management design processing services. For more information about China Industrial Waste Management, Inc., please visit http://www.chinaciwt.com .

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital.

Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

                   CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
                         CONSOLIDATED BALANCE SHEETS
                                  (AUDITED)

                                             December 31,       December 31,
                                                   2008             2007
    ASSETS
    Current assets
    Cash and cash equivalents                $  5,714,001     $  3,260,307
    Trade accounts receivable, net              2,414,257          594,322
    Other receivables                             105,329           22,453
    Inventory                                   2,372,214        1,332,349
    Advances to suppliers                         550,931          390,159
    Prepaid expense                                17,589           42,784
    Total current assets                       11,174,321        5,642,374

    Investment                                  2,794,248        2,633,354
    Property, plant and equipment, net         15,474,915        2,642,037
    Construction in progress                    5,738,271        7,410,255
    Land usage right, net of
     accumulated amortization                   1,817,427        1,732,074
    Deposits                                       14,798           80,925
    Related party receivable                    1,256,599          388,796
    Escrow account                                750,000               --
    Certificate of deposit                         73,287               --
    Other asset                                   348,545               --
    TOTAL ASSETS                             $ 39,442,411     $ 20,529,815

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities
    Accounts payable                         $    780,458     $    279,600
    Short-term loan                             3,371,198        1,369,000
    Tax payable                                   215,240           93,954
    Advance from customers                        539,013               --
    Deferred sales                                972,143          667,389
    Accrued expenses                              361,111            7,236
    Construction projects payable               4,742,164               --
    Related party payable                         278,490          536,362
    Other payable                                 211,362          343,207
    Total current liabilities                  11,471,179        3,296,748

    Asset retirement obligation liability         502,278          437,619
    Government subsidy                          1,028,257          620,979
    TOTAL LIABILITIES                          13,001,714        4,355,346

    Minority interest in subsidiary             2,823,126        2,259,595

    Commitments and contingencies

    Stockholders' equity
    Preferred stock: par value
     $.001; 5,000,000
     shares authorized; none issued
     and outstanding                                   --               --
    Common stock: par value $.001;
     95,000,000 shares authorized;
     15,262,035 and 13,220,843 shares
     issued and outstanding at
     December 31, 2008 and 2007
     respectively                                  15,262           13,221
    Additional paid-in capital                  5,644,750        1,968,634
    Other comprehensive income                  2,422,167        1,153,728
    Retained earnings                          15,535,392       10,779,291
    Total stockholders' equity                 23,617,571       13,914,874

    TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY                    $ 39,442,411     $ 20,529,815



                   CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
        CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                                  (AUDITED)

                                                  Years Ended December 31,
                                                    2008             2007
    Revenue
      Service fees                           $  8,182,379     $  5,004,926
      Sales of cupric sulfate                   1,806,721        1,817,861
      Sales of recycled commodities             3,410,784        2,716,720
      Operating revenue                        13,399,884        9,539,507

    Costs of revenues
      Cost of service fees                      1,547,677        1,251,049
      Cost of cupric sulfate                      740,881          537,563
      Cost of recycled commodities              1,866,086          988,309
      Costs of revenue                          4,154,644        2,776,921

    Gross profit                                9,245,240        6,762,586

    Operating expenses
      Selling expenses                            806,438        1,159,069
      General and administrative expenses       2,737,584        2,443,759
      Total operating expenses                  3,544,022        3,602,828

    Income from operations                      5,701,218        3,159,758

    Other income (expense)
      Investment loss                             (24,733)         (47,923)
      Interest income                              26,438           88,499
      Other income                                725,030           15,769
      Reimbursed legal costs                           --          860,460
      Other expense                              (448,468)         (19,060)

    Total other income                            278,267          897,745

    Net income from continuing operations
     before minority interest, income tax
     provision and discontinued operations      5,979,485        4,057,503

    Income tax provision                          659,853               --

    Income from continuing operations           5,319,632        4,057,503

    Discontinued operation
      Loss from operations of discontinued
       component                                       --           (6,465)
      Gain on disposal of discontinued
       component                                       --            1,205
      Loss on discontinued operations                  --           (5,260)

    Net income before minority interest         5,319,632        4,052,243

    Minority interest                             563,531          363,036

    Net income                                  4,756,101        3,689,207

    Foreign currency translation adjustment     1,268,440          774,007

    Comprehensive income                     $  6,024,541     $  4,463,214

    Basic and diluted weighted
     average shares outstanding                13,755,274       13,220,843

    Basic and diluted net earnings
     per share                               $       0.35     $       0.28



                   CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (AUDITED)

                                                Years ended December 31,
                                                  2008               2007

    Cash flows from operating activities:
    Net income                            $   4,756,101    $      3,689,207
    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
      Minority interest                         563,531             363,036
      Depreciation                              644,901             428,696
      Amortization                               25,578              37,729
      Bad debt allowance                          1,635               3,476
      Stock issued for services                 133,100              16,000
      Accretion expenses                         64,659              28,235
      Loss on disposal of subsidiary                 --               5,260
      Loss on equity investment                  24,733              47,923
      Subsidy received from government          407,278             596,528

    Changes in operating assets
     and liabilities:
      Accounts receivable                    (1,821,570)           (419,185)
      Inventory                              (1,039,865)           (660,714)
      Other receivables                         (82,876)            114,945
      Advance to suppliers                     (160,772)              1,778
      Prepaid expense                            25,195             (20,058)
      Certificate of deposit                    (73,287)                 --
      Deposits                                   66,127             (72,042)
      Other assets                             (348,545)                 --
      Accrued expense and deferred sales        658,629             163,225
      Accounts payable                          369,012             211,828
      Advance from customers                    539,013                  --
      Tax payable                               121,286              83,738
    Net cash provided by operating
     activities                               4,873,863           4,619,605

    Cash flows from investing activities
      Investment in subsidiary                 (185,627)         (2,643,351)
      Purchase of property and equipment     (5,281,145)           (183,326)
      Construction contracts                 (1,938,955)         (6,677,654)
      Payments from related party                    --              11,092
      Proceeds to related party                (867,803)                 --
      Payments to related party                (257,872)             28,932
      Proceeds on sale of subsidiary                 --              34,198
    Net cash used in investing activities    (8,531,402)         (9,430,109)

    Cash flows from financing activities
       Proceeds from short term loans         3,371,198           1,315,097
       Repayment of short term loans         (1,369,000)                 --
       Proceeds from issuance of common
        stock, net of offering costs          3,545,057                  --
       Escrow account                          (750,000)                 --
    Net cash provided by financing
     activities                               4,797,255           1,315,097

    Effect of exchange rate on cash           1,313,978             276,736

    Net increase (decrease) in cash and
     cash equivalents                         2,453,694          (3,218,671)

    Cash and cash equivalents,
     beginning of period                      3,260,307           6,478,978
    Cash and cash equivalents,
     end of period                        $   5,714,001    $      3,260,307

    Supplemental cash flow information:
        Cash paid during the year for:
          Interest                        $     304,684    $             --
          Income taxes                    $     441,170    $             --
        Non-cash financing activities:
        Completed construction projects   $   4,742,164    $             --
        Common stock issuance
          cost-warrants                   $     398,466    $             --
        Common stock issuance
          cost-stock                      $     113,000    $             --



    For more information, please contact:

     Ms. Guo Xin, CFO
     Tel:   +86...
     Email: hellenguo@chinaciwt.com

     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    Investors Contact:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternational.net

Interested parties may access the call by dialing +1-480-629-9031. The conference ID is 4045893. It is advisable to dial in approximately 5-10 minutes prior to the start of the call. A replay will be available through April 8, 2009 and can be accessed by dialing +1-800-406-7325 (U.S.), +1-303-590-3030 (Int'l), passcode 4045893.

This call is being web cast by ViaVid Broadcasting and can be accessed at ViaVid's website at http://www.viavid.net or at the following link: http://viavid.net/dce.aspx?sid=000060FC . To access the web cast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player please visit: http://www.microsoft.com/windows/win... .

About China Industrial Waste Management, Inc.

China Industrial Waste Management, Inc., through its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd., is engaged in the collection, treatment, disposal and recycling of industrial wastes principally in Dalian, China and surrounding areas in Liaoning Province. The Company provides waste disposal solutions to its more than 400 customers from facilities located in the Economic and Technology Development Zone, Dalian, PRC. Dalian Dongtai treats, disposes of and/or recycles a variety of industrial wastes through incineration, burial and/or water treatment, and recycles, processes and/or resells waste products for use as raw materials in the production of chemical and metallurgy products. In addition, Dalian Dongtai provides environmental protection services, technology consultation, pollution treatment services, and waste management design processing services.

Cautionary Statement Regarding Forward-Looking Information

This release may include "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain such words as "may," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or the negative or other variations thereof or comparable terminology. These forward-looking statements are based on current expectations and projections about future events. Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, our actual performance may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission: the timing and magnitude of technological advances; the prospects for future acquisitions; the effects of political, economic and social uncertainties regarding the governmental, economic and political circumstances in the People's Republic of China, the possibility that a current customer could be acquired or otherwise be affected by a future event that would diminish their waste management requirements; the competition in the waste management industry and the impact of such competition on pricing, revenues and margins; uncertainties surrounding budget reductions or changes in funding priorities of existing government programs and the cost of attracting and retaining highly skilled personnel; our projected sales, profitability, and cash flows; our growth strategies; anticipated trends in our industries; our future financing plans; and our anticipated needs for working capital.

Forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

    For more information, please contact:

     Ms. Guo Xin, CFO
     Tel:   +86-411-8581-1229
     Email: hellenguo@chinaciwt.com

     Mr. Zhang Dazhi, Company Secretary
     Tel:   +86-411-8259-5339
     Email: darcy.zhang@chinaciwt.com
     Web:   http://www.chinaciwt.com

    Investors Contact:
     Mr. Matthew Hayden, HC International
     Tel:   +1-561-245-5155
     Email: matt.hayden@hcinternational.net
     Web:   http://www.hcinternational.net