LCP Lon.Asia China

RNS Number:5386I
London Asia Chinese Private Equity
06 September 2006

6 September 2006



                London Asia Chinese Private Equity Fund Limited

                            ("LACPEF" or "the Fund")



                      Investee Companies Trading On PLUS



LACPEF, the China focused investment fund, is pleased to announce that two more
of its investee companies are to begin trading on the UK's PLUS Markets Stock
Market.



China New Energy Ltd ("CNE") is expected to begin trading today at 525p a share,
giving it a market capitalisation of #35 million.  Its core business is the
supply of turnkey technology solutions for the production of ethanol, edible
alcohol and acetic acid from a range of bio-resources, including corn,
sugarcane, cassava and other bio-resources.  As part of the listing process, the
Fund has invested a further #0.35 million, bringing its total investment in CNE
to date to #2.2 million for a 25% stake.  CNE is seeking a listing to enable it
to tap into the international market for its product, with sales currently
focused on the Chinese market.



China Biofoods Ltd ("Biofoods") is expected to begin trading on Thursday 7
September at 175p a share, giving it a market capitalisation of #12.5 million.
The Fund took a 31% stake in June at a cost of #2.1 million.  Biofoods
specialises in the production of highly purified herb extract products, which
are then used to produce traditional Chinese medicine, and as ingredients in
functional foods.  China Biofoods reported revenues of #2.9m with profit after
tax of #1.2m for the year ended 31 December 2005.  It is listing on PLUS as a
way of tapping into the international market for its products.



Simon Littlewood, Executive Director of LACPEF, commented: "These listings on
PLUS follow the successful listing of our investee company Dalian Business
Institute in May, with Dalian currently trading at a market capitalisation of
over #18 million, valuing the Fund's stake at #3.6 million against an investment
cost of #2.0 million.  The listings demonstrate the value in our investment
portfolio.  CNE is listing as it will need considerable amounts of capital going
forward as it seeks to take advantage of its leading position in the ethanol
sector in China, where as a result of recent changes in legislation there has
been a rapid expansion in the size of the market, as well as taking advantage of
opportunities outside China, with ethanol being looked at worldwide as a
potential alternative to highly priced oil.  Biofoods is expanding its product
range, and looking to tie up with international partners to sell its products
overseas."



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


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



About China New Energy

CNE has established itself as the leading brand in China, with an estimated 60%
share of the market for ethanol production equipment in China. The Company's
successful track record is key to growing the business and its technology has
been used in over 30 projects. CNE is supported by strong drivers with the
demand for ethanol, a fuel seen as an alternative to oil, growing rapidly and
supported by a recent change in legislation in China requiring 10% of all
vehicle oil consumption to be biofuel in 11 of China's Provinces.  Similar
legislation is coming into force in many countries, such as the US and EU,
creating a potential market for CNE to export its products going forward.

For additional information, visit the Company's web site at
www.chinanewenergygroup.com



About China Biofoods

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



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



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



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




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