Hong Kong, May 14, 2009 - Oil, gas and renewable energy company Genesis Energy Holdings Limited (HKEx: 702) announces the disposal of its gas refilling station business in Xinjiang, the PRC, for a consideration of HK$21 million, which approximates its unaudited net asset value as at March 31, 2009. Based on the unaudited financial information of the company and the consideration, there will be no material gain or loss expected to reflected on the Group upon the completion of the disposal.

Mr Terence Kong, Chairman of Genesis Energy, said: “Due to the expected substantial increase in the cost of gas supply from June 2009, it is expected that the profit contributed by this operation to the Group will substantially diminish in the foreseeable future. Further, because of the change of the local government policy, more competitors are able to step into the business and the prospects of the operation will be deteriorating. In view of the losses incurred in the past two years, the board considers it in our interest to dispose of the operation to minimize potential loss and re-allocate resources to the development of other more promising businesses, in particular in the upstream oil and gas sector and waste-to-energy projects.”

The estimated net proceeds received by the Group from the disposal will be in the amount of HK$20 million, which is intended to be used as general working capital and for future development when investment opportunities arise.

The Group took its first step into the waste-to-energy sector in early 2009 following the signing of a conditional agreement to acquire 30% interest in a waste incineration power plant in the PRC. In April 2009, the Group signed a letter of intent with the People’s Government of Jilin Province for the strategic development of renewable energy projects in the province.

The proposed disposal is subject to the approval of shareholders at a special general meeting. Trading in the Company’s shares resumed at 9:30 am on May 14, 2009.

About Genesis Energy
Genesis Energy Holdings Limited (HKEx: 702) is an energy company with a key focus on oil and gas, as well as other renewable sources of energy. The Group is committed to building a diversified portfolio of energy assets and operations with an aim to developing into one of the leading independent energy businesses in Greater China. The Group currently operates oil and gas fields in the US and the PRC.

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