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. (OTC Bulletin Board: LPIH - News), 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/