Xiangyu Dredging Announces2011 Interim Results

Continues to increase market share
To maintain leading position in China’s private dredging industry

Financial and Business Highlights
 Revenue of RMB461.6 million, representing a year-on-year increase of 188%
 Gross profit posted RMB183.8 million, representing an increase of 104% as compared with the same period of 2010
 Net profit was RMB135.4 million, representing an increase of 112% as compared with the same period of 2010
 During the six months ended 30 June 2011, Xiangyu Dredging has obtained new dredging contracts and extension of existing contracts amounted to about RMB2.5 billion
 At the pre-tax backlog amount of approximately RMB3.2 billion as of 30 June 2011.

Continues to increase market share
To maintain leading position in China’s private dredging industry

Xiangyu Dredging Holdings Limitedis pleased to announce the unaudited interim results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2011(the “Reporting Period”).

During the period, attributable to capital and reclaimed dredging activities in the PRC, which led to increased demand for the Group’s dredging services, revenue achieved about RMB461.6 million, representing an increase of 188% as compared with the same period of last year. Gross profit amounted to RMB183.8 million with a y-o-y increase of 104%. Net profit surged to RMB135.4 million, representing an increase of 112% as compared with the same period of 2010.

During the six months ended 30 June 2011, we have obtained new dredging contracts and extension of existing contracts amounted to about RMB2.5 billion, resulting at the pre-tax backlog amount of approximately RMB3.2 billion as of 30 June 2011. In addition, the Group continues to expand business scope by establishing environmental dredging operations.