Gushan Environmental Energy Limited Announces
Fourth Quarter and Full Year 2007 Year Results

Gushan   March 07, 2008

New York, March 5, 2008 – Gushan Environmental Energy Limited (“Gushan”; NYSE: GU), China’s largest producer of biodiesel as measured by annual production capacity, today announced its unaudited financial results for the fourth quarter and year ended December 31, 2007.

Fourth Quarter 2007 Highlights

  • Total revenues increased 50.4% compared to the corresponding quarter of 2006
  • Income from operations increased 104.0% compared to the corresponding quarter of 2006
  • One-time non-cash interest expenses of RMB108.9 million (US$14.9 million) in connection with the conversion of convertible notes
  • Net loss of RMB19.8 million (US$2.7 million) in the fourth quarter of 2007, compared to net income of RMB48.5 million (US$6.6 million) for the fourth quarter of 2006
  • Sales volume of biodiesel increased 31.2% compared to the corresponding quarter of 2006
  • Average selling price of biodiesel increased 13.5% compared to the corresponding quarter of 2006

Full Year 2007 Highlights

  • Total revenues increased 22.3% compared to 2006
  • Income from operations increased 15.0% compared to 2006
  • One-time non-cash interest expenses of RMB108.9 million (US$14.9 million) in connection with the conversion of convertible notes
  • Net income decreased 30.8% compared to 2006
  • Sales volume of biodiesel increased 15.1% compared to 2006
  • Average selling price of biodiesel increased 5.2% compared to 2006

For more information: http://www.chinagushan.com/en/resource/downloads//07154855.rar