New Oriental Energy & Chemical Says It Expects FY'09 Revenues Will Increase at Least 20%

NEW YORK, NY--(Marketwire - July 22, 2008) - New Oriental Energy & Chemical Corp. (NASDAQ: NOEC), a specialty chemical and emerging alternative fuel manufacturer in The People's Republic of China (PRC), today expanded the guidance provided in its year end press release issued on July 15, 2008.

According to the Company, it expects another year of record sales and profits, with full year Fiscal 2009 revenues increasing at least 20% as compared with reported results in Fiscal Year 2008.

As previously announced, the Company anticipates that in line with its growth strategy, the contribution of its alternative fuel operations to revenues will grow from approximately 48% in FY'08 to approximately 55%, while its traditional fertilizer business is expected to contribute approximately 45% of sales, compared to approximately 52% in FY'08.

In its fertilizer business, the Company anticipates continued strong demand and pricing for its products, principally urea, and expects margins to equal or exceed margins achieved in FY'08, as it continues to reap the benefits of its coal stick and other cost saving technology.

In its alternative fuels business, the Company said that in the first two quarters of the year and for part of the third quarter, DME sales will continue to be limited due to the Company's need to purchase methanol from outside vendors.

According to Mr. Chen Si Qiang, the Company's CEO and Chairman, "Right now, we can internally produce approximately 25% of the methanol needed as feedstock to support an estimated annual DME production of 120,000 tons, with the additional methanol required purchased from outside vendors. Given the continuing growth in demand and government support for DME as a cheaper and cleaner alternative to LPG and diesel fuel, we are positioned to sell all of the product we can produce at good margins when our new 200,000 ton methanol capacity expansion is up and running later this year. Further, we will be able to sell either methanol or DME given the production process we utilize."

With respect to the first quarter of FY'09 ended June 30, 2008, the Company said it expects to report increased revenues of about $16 million compared with $14.7 million in the first quarter of FY'08. It said that revenues in the period reflect its decision to temporarily limit production of DME that would require it to purchase methanol from outside vendors.

Mr. Chen concluded "We believe investors should note that upon completion of our methanol facility we expect to see a dramatic increase in our DME output as well as a significant boost in our margins. Looking ahead to FY'10, if we were to achieve four full quarters of this higher production level, based on current prices, the contribution to full year revenue from our alternative fuels segment by itself, including DME and excess methanol produced, could be expected to be approximately $90 million."

Conference Call Invitation

The Company will host a conference call to discuss its fiscal 2008 results for the period ended March 31, 2008 and its FY'09 outlook on Wednesday, July 30, 2008 at 4:30 p.m. ET.

Interested participants should call 1-800-762-8908 when calling within the United States or 1-480-248-5085 when calling internationally. Please ask for the New Oriental Energy & Chemical Earnings Conference Call, Pass Code 3904474. There will be a playback available until 8/5/08. To listen to the playback, please call 1-800-406-7325 when calling within the United States or 1-303-590-3030 when calling internationally. Use the Pass Code 3904474 for the replay.

This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=00005355 or at ViaVid's website at www.viavid.net. The webcast can be accessed through July 30, 2009.

About New Oriental Energy & Chemical Corp.

New Oriental Energy & Chemical Corp. which recently upgraded its US listing to the NASDAQ Global Market (NASDAQ: NOEC), is an emerging alternative fuel and specialty chemical manufacturer based in Henan Province, China. The Company is focused on the production of Dimethyl ether (DME), methanol and fertilizer products. The Company sells its products primarily through a network of distribution partners. Additional information on the Company is available on its website at www.neworientalenergy.com.

Safe Harbor Statement

This press release may contain forward-looking statements concerning New Oriental Energy & Chemical Corp. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. New Oriental Energy & Chemical Corp. undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.