Longwei Petroleum Announces Record Revenue and Earnings for Fiscal 2009 Year-End

TAIYUAN CITY, China, Oct. 14 /PRNewswire-Asia-FirstCall/ -- -- Revenue up 37% Year-Over-Year to $196,811,000 -- Net Income up 28% Year-Over-Year to $26,549,000 or $0.35 EPS (excluding one-time non cash items) -- Shareholders Equity Increased 30% Year-Over-Year from $88,541,000 to $114,923,000 -- Book Value Increased 21% from $1.21 per share to $1.50 per share Year-Over-Year

Longwei Petroleum Investment Holding Ltd. (BULLETIN BOARD: LPIH) , announced today its financial results for the full year fiscal 2009 ended June 30, 2009.

Chairman and CEO, Mr. Cai Yongjun, stated: "I am very pleased with our financial results for fiscal 2009. Our fuel distribution business continues to grow at a rapid pace. The rapid industrial growth in the Shanxi province of China where we operate combined with the expansion of our storage capacity from 50,000 metric tons to 120,000 metric tons will make us the largest non-government owned fuel distributor in our province. I am very bullish on our future and believe that we will deliver double-digit revenue and earnings growth in fiscal 2010 and beyond."

The Company reported revenue of $196,811,000 for the fiscal year ended June 30, 2009, up 37% from $143,788,000 in fiscal year 2008. Net income (excluding one time non-cash items) grew 28% year-over-year to $26,549,000 or $0.35 EPS, up from $0.28 EPS in the prior-year period. EBITDA in fiscal 2009 was $31,575,000, up from $30,781,000 from the same period last year. Net income grew 5% to $21,777,000 or $0.28 EPS compared to $20,715,000 or $0.28 EPS in fiscal 2008. Though gross margins decreased from 26% to 20% year-over-year due to costs associated with the buying and selling of its fuel inventory, net margins remained strong at 11% or 13% (excluding one-time non cash items).

Additionally, shareholders equity increased 30% year-over-year from $88,541,000 to $114,923,000. Book value increased 24% from $1.21 per share to $1.50 per share.

Future Outlook:

Chief Financial Officer Jim Crane stated: "We expect to close our capital raise of $10 million to $15 million in the very near future. I will add that this capital raise is not a registered offering. This capital raise will allow us to move forward with inventory purchases for the new Gujiao City storage facility and enable the Company to begin capturing new industrial accounts in Gujiao City, which we expect will result in significant revenue and earnings growth in fiscal 2010. We have conservatively estimated the Gujiao facility will add approximately $40 million in revenue and approximately $6 million to net income for the fiscal year ending June 30, 2010. This facility is expected to begin operations in January 2010 and will service large industrial plants in Shanxi province, which are in close proximity to the new facility.

We expect EBITDA of approximately $47 million in fiscal 2010, which equates to EBITDA per share of approximately $0.50. The estimated net income for fiscal 2010 is expected to be approximately $31 million.

We are projecting revenue of approximately $449 million in fiscal 2011, net income of $76 million, and earnings per share of approximately $0.80 per share."

About Longwei Petroleum Investment Holding Limited

Longwei Petroleum Investment Holding, Limited (the "Company") is an energy company that, through its subsidiaries, engages in oil and gas operations in the People's Republic of China ("PRC"). Oil and gas operations consist of transporting, marketing and selling finished petroleum products. The Company's headquarters and primary facilities are located in Taiyuan, Shanxi Province ("Shanxi"). The Company purchases diesel, gasoline, fuel oil and kerosene (the "Products") from various petroleum refineries in the PRC. The Company is 1 of 5 licensed intermediaries in Shanxi that operates its own large-scale storage tanks and has the necessary licenses to operate and sell Products not only in Shanxi but also throughout the entire PRC. The Company's storage tanks have the largest storage capacity of any non-government operated entity in Shanxi. The Company seeks to earn profits by selling its Products at competitive prices to large-scale gas stations, coal plants and other power supply customers and small, independent gas stations. The Company also earns revenue by acting as a purchasing agent for other intermediaries in Shanxi and through the sale of diesel and gasoline at a gas station located on the Company's property in Taiyuan. For further information on Longwei Petroleum Investment Holding Limited, please visit http://www.longweipetroleum.com/ . You may register to receive Longwei Petroleum Investment Holding Limited's future press releases or request to be added to the Company's distribution list by contacting Dave Gentry at [e-mail] or 1-800-REDCHIP(733-2447), Ext. 104.

Forward-Looking Statements

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Longwei's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Longwei's operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.

Longwei Petroleum Investment Holding Limited and Subsidiaries Consolidated Statements of Operations and Other Comprehensive Income For the Years Ended June 30, 2009 2008 (In Thousands, Except Per Share Data) Net Sales $196,811 $143,788 Cost of Sales 157,341 106,801 Gross Profit 39,470 36,987 Operating Expenses Stock Based Compensation 3,664 -- General and Administrative Expenses 4,003 4,863 Total Operating Expenses 7,667 4,863 Operating Income 31,803 32,124 Other Income and Expenses, Net (620) (1,702) Interest Expense (286) (45) Income Before Income Tax Expense 30,897 30,377 Income Tax Expense (9,120) (9,662) Net Income 21,777 20,715 Foreign Currency Translation Adjustment (1,372) 7,709 Comprehensive Income $20,405 $28,424 Earnings per Common Share: Basic $0.28 $0.28 Diluted $0.28 $0.27 Weighted Average Common Shares Outstanding: Basic 76,537 73,341 Diluted 78,524 75,739 Longwei Petroleum Investment Holding Limited and Subsidiaries Consolidated Balance Sheets As of June 30, 2009 2008 Assets (In Thousands) Current Assets: Cash $7,308 $8,633 Accounts Receivable, Net of Allowance for Doubtful Accounts of $0 in 2009 and $0 in 2008 26,796 12,134 Inventories 13,976 29,053 Advances to Suppliers 35,317 28,327 Deposits -- 73 Total Current Assets 83,397 78,220 Long Term Deposits -- 12,611 Property Plant and Equipment, Net 36,745 2,637 Total Assets $120,142 $93,468 Liabilities and Shareholders' Equity Current Liabilities: Accounts Payable $2,275 $964 Convertible Notes Payable, Net of Discount of $0 and $595 800 1,508 Taxes Payable 2,144 2,455 Total Current Liabilities 5,219 4,927 Total Liabilities 5,219 4,927 Commitments and Contingencies Shareholders' Equity: Preferred Stock, No Par Value, 100,000,000 Shares Authorized, 0 Issued and Outstanding as of June 30, 2009 and 2008 -- -- Common Stock, No Par Value; 500,000,000 Shares Authorized; 81,852,831 and 76,205,000 Issued and Outstanding as of June 30, 2009 and 2008 11,949 7,009 Shares to be Issued 126 -- Stock Subscription Receivable (76) -- Deferred Stock Based Compensation (25) -- Additional Paid-in Capital 2,540 1,528 Retained Earnings 90,519 68,742 Other Comprehensive Income 9,890 11,262 Total Shareholders' Equity 114,923 88,541 Total Liabilities and Shareholders' Equity $120,142 $93,468 For more information, please contact: Investor Relations: Dave Gentry RedChip Companies, Inc. Tel: [phone] x104 Email: [e-mail] Web: http://www.redchip.com/ Jim Crane, Chief Financial Officer U.S. Office: [phone] P.R.C. Cell: [phone]

Longwei Petroleum Investment Holding Ltd.

CONTACT: Investor Relations, Dave Gentry of RedChip Companies, Inc.,
[phone] x104, [e-mail]; or Jim Crane, Chief Financial Officer
of Longwei Petroleum Investment Holding Ltd., U.S. Office: [phone],
P.R.C. Cell: [phone]

Web site: http://www.longweipetroleum.com/