Yinggao Holdings plc 

('the Company')

Disposal of Equity Interest in Long Prosperity Industrial Limited

Yinggao Holdings plc announces today that a wholly owned subsidiary of the Company, Yinggao Energy Limited ('YEL') has agreed to sell the 100 per cent. equity interest it owns in Long Prosperity Industrial Limited ('LPIL') to a related company, Winko Foundation Limited ('WFL'), whose sole shareholder Keen Lloyd Holdings Limited is also the major shareholder of the Company, holding 92.06 per cent. of the Company's issued share capital.

The only asset owned by LPIL is a 59.2 per cent. stake in Hubei Chang Zhou Power Development Limited ('HCPD'), a joint venture company operating a coal-fired power plant in Hubei , China. The power plant ceased operation in the third quarter of 2007 and has shut down following an agreement signed with the local government in June 2007. 

An announcement was made on 4 June 2008 by the Company detailing that the value of the property, plant and equipment at the power plant in Hubei was to be wholly written off. As a result, the power plant now carries no value in the balance sheet of the consolidated accounts of the Company and no longer makes any contributions to the Company.

In terms of liabilities, HCPD is the borrower in respect of the US$1.9 million loan from Industrial and Commercial Bank of China Limited. This was the disputed loan which lead to the qualification in the audit report for the year ended 31 December 2008. In addition, HCPD may incur decommissioning costs of approximately £300,000 in respect of the power plant if it is not sold prior to 2010. The result of the sale of the shares in LPIL to WFL is that the liabilities and issues that currently sit in either LPIL or its subsidiary HCPD will thereafter be outside the Company and the Company's consolidated accounts will have significant uncertainties removed from them.

Under the sale and purchase agreement YEL will dispose of the 5,000 ordinary shares it owns in LPIL to WFL for a nominal consideration of HK$1.00. In addition, the agreement states that YEL will be paid 50 per cent. of any amount recoverable by LPIL as a result of the legal proceedings in which LPIL is currently engaged as co-plaintiff with Global Assets Limited and Walton Enterprises Limited against Sun Hung Kai Securities Limited for breach of contract in relation to the sale of equity in HCPD.

The independent directors of the Company, having consulted with Daniel Stewart & Company plc, the Company's nominated adviser, consider that the disposal of YEL's equity interest in LPIL is in the best interests of the Company and that the terms of the transaction as fair and reasonable insofar as Shareholders are concerned.

For further information:

Angela Leung                                    Tel:  + 852 2219 9999

Yinggao Holdings plc

www.yinggaoholdings.com

Paul Shackleton
Daniel Stewart & Company plc        Tel: + 44 (0) 207 776 6550
www.danielstewart.co.uk