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Andatee China Marine Fuel Services Corporation, a leading independent operator engaged in the production, storage, distribution, wholesale purchase and sale of blended marine fuel oil for cargo and fishing vessels in Northern China, has announced that it has successfully achieved breakthrough in research on the company's proprietary pour point depressant (PPD) LDY-103, which will be used as a marine fuel additive to improve the fuel's performance in winter.

The R&D Department of the company commenced its research and development efforts on LDY-103 in October 2008 with a range of small- scale experiments.

During the pilot production phase, the Andatee found that its proprietary PPD increases the performance of its marine fuel #3 and #4, especially during low temperature conditions.

PPD LDY-103 has a shorter production cycle and cost structure compared to Andatee's previous PPD. In addition, the Company's PPD product is expected to reduce marine fuel production cost by RMB60-RMB70 ($8.80-$10.20), and to increase gross margin by 1.2% based on a market price of RMB5,000 ($735.30) per ton.

"We are very pleased with the pace of progress in the research of our proprietary PPD, which is currently applied to over 4,000 tons of marine fuel and meets all the required specifications and quality control measures," commented Mr. An Fengbin, Chairman, President and CEO of Andatee China Marine Fuel Services Corporation.

"We are confident that the use of PPD as an additive for our marine fuel will increase the demand for our marine fuel and we believe we have a well-planned strategy to promote our product as reliable, superior quality and cost effective for small and medium-sized vessel owners, thus strengthening our brand recognition in the industry," concluded Mr. An.