Chang-On International Inc. Announces Two Innovations to Improve Efficiency and Quality; Reduce Power Consumption by at least 50%

HARBIN, China, June 29 /Xinhua-PRNewswire/ -- Chang-On International Inc. (OTC Bulletin Board: CAON) (''CAON'' or ''the Company''), a company engaged in the business of waste recycling and reutilization, announced that the engineers and experts of the Company has introduced two innovations relating to the technological process of producing SF synthetic materials that will greatly improve efficiency, product quality and reduce power consumption by at least 50%.

The first innovations relating to the technological process is the installation of the Conical-screw Granules Squeezing System instead of the traditional techniques of High-mix & Smelting System. This system is the new technological method for regenerating raw materials. The second innovation is the newly-designed High Efficient Wind Delivery System that can clean and bring materials into the muller directly, and is more advanced compared to the old process, which delivers material via a conveyer belt after cleaning. The innovations greatly lower costs and increase margin profit.

CAON's business concentrates on using waste plastic and coal ash to turn products into SF synthetic material. With the SF synthetic materials, the company can produce wall boards used in building construction and drainage covers. The two main products are widely used in the building construction industry. As such material is more competitive than foreign products, which merely utilize waste material, because it not only makes use of waste plastics, but also utilizes coal ash, more and more local developers are showing great interest in the relative products with the intention of buying them.

Mr. Li Guomin, the president of CAON, said, ''These two innovations are a milestone in company's development, not only greatly improving our efficiency and quality, but also indicating the success of our investments in technology research. We will continue to conduct research on our new technological process and new automatic control system in order to improve our productivity and reduce cost.''

About Harbin Hongbo Environment Protection Material Ltd.

Founded in 2004, Harbin Hongbo Environment Protection Material Ltd. is located in the Harbin Economy & Technology Development Zone, Heilongjiang Province, China, with a registered capital of RMB 3 million (or USD 375,000) and total assets of nearly RMB 10 million (or USD 1.25 million). It is a joint venture between enterprises from Taiwan, Hong Kong and domestic companies.

Harbin Hongbo focuses its core business in comprehensive resources utilization of industrial solid wastes in the resources and environment field. Its main product is SF synthetic material, a new type of material for environment protection and energy saving, which is abbreviated for synthetic material of plastics and coal ash. Based on the material, the company develops different products, such as boards and profiled bars used in well lids, grates for water drainage pools, guard railings, protective boards for slopes, hard shoulders, inner wall cable pipes/tubes, home renovations and more.

The company is in a partnership with Changchun Applied Chemistry Institute of China Academy of Sciences, which mainly specializes in research relating to resources and environment, advanced materials, development of carbon dioxide, corn and rare earth resources, focused development of advanced structure materials, advanced composite materials and advanced functional materials. And Mr. Mo Zhishen, a professor at the Institute, acts as the company's R&D leader.

Harbin Hongbo will focus on the development and use of SF synthetic material, especially construction molding boards, following which it will expand its scale of production, purchase new equipment and increase output in the future.

Forward-looking Statements

This report contains 'forward-looking' statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese, European and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.

The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.

For more information, please contact:

Mr. Wang Hui
Tel: +86-451-8269-5010
Email: wanghui-1027@163.com
Web: http://www.chuangon.com
SOURCE Chang-On International Inc.