Revenue and Net Income Growth of 70% in 2007 and 2008 NEW YORK, June 7 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC:CHNG) (BULLETIN BOARD: CHNG) , one of the leading providers of compressed natural gas (CNG) for vehicular fuel in Xi'an, China, today announced financial expectations for 2007 and 2008. Mr. Qinan Ji, Chairman and CEO of China Natural Gas, stated, "As of today, we have 15 retail CNG filling stations contributing to our financial results and we expect to finish the year with 23 retail CNG filling stations contributing to our financial results. We are very pleased with the progress we are making as we capitalize on the opportunity to provide more and more compressed natural gas to the local Chinese market." For the year 2007, the Company expects revenue to increase 70% to $32.0 million from $18.8 million in 2006. The Company expects net income to increase 70% to $9.3 million in 2007 from $5.5 million in 2006. For the year 2008, the Company anticipates revenue and net income growth of at least 70%. "The financial guidance we are formally initiating today primarily reflects performance from and growth of our retail CNG business and is based on operating 23 revenue generating retail CNG filling stations by the end of 2007 and 42 revenue generating retail CNG stations by the end of 2008. At this time, we are not accounting for the potential sale of Liquefied Natural Gas (LNG) in our financial guidance, although we continue to actively explore this compelling opportunity," concluded Mr. Qinan Ji. Additionally, today China Natural Gas announces several new corporate initiatives. By the end of 2007, the Company expects to staff and have functioning a representative office in the U.S. in order to facilitate communication with new and existing shareholders and accountants, as well as potentially manage the process to list the Company's securities on a national securities exchange. The Company also anticipates the appointment of a global auditing firm as well as the appointment of additional independent board directors. About China Natural Gas, Inc. China Natural Gas, Inc., ("CHNG"), is the first China-based natural gas company publicly traded in the US. It currently owns and operates a 120 kilometer long compressed natural gas pipeline in Xi'an, China, a fast growing Chinese city supported by a population of approximately eight million and is the "gateway" to the broad Western regions of China. CHNG has three profitable business segments: end user delivery of natural gas services to residential, commercial and industrial customers; wholesale natural gas to retail natural gas filling stations; and retail natural gas at company-owned natural gas filling stations. The city of Xi'an has approximately 20,000 Taxis, 3,000 buses and 2,000 special purpose vehicles that are powered by compressed natural gas. This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. DATASOURCE: China Natural Gas, Inc. CONTACT: Ashley Ammon MacFarlane, or Bill Zima, both of Integrated Corporate Relations, +1-203-682-8200

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