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      Tri-Tech Holding Inc. Q3 Revenue Up 131% to $4.9M Net Income Up 112% to $1.1M



      YTD Revenue Up 96.5% to $10.9M; EPS $0.68
      Conference Call to be held on November 13, 2009 at 10:00 AM Eastern Time
          BEIJING, Nov. 12 /PRNewswire-Asia-FirstCall/ -- Tri-Tech Holding Inc. (Nasdaq: TRIT), a premier Chinese company that engineers, manages and monitors China's municipal sewer systems, natural waterways and resources, announced today that revenue for the third quarter ended September 30, 2009 increased 131% to $4.9 million from $2.1 million in the third quarter of 2008. Diluted earnings per share for the quarter were $0.27 based on net income of $1.1 million. This compares with net income of $506,000 or $0.14 diluted EPS a year ago.
      Third Quarter 2009 Highlights
          -- Revenue for Q3 2009 increased 131% to $4.9 million from $2.1 million in
             Q3 2008.
          -- Gross profit (exclusive of depreciation and amortization) increased
             112% to $1.9 million for Q3 2009 from $0.9 million in Q3 2008.
          -- Q3 2009 gross margins decreased slightly at 39.1%, vs. 42.6% for Q3
          -- Income from operations increased 150% to $1.3 million from $536,000 in
             Q3 2008.
          -- Net income increased 112% to $1.1 million from $506,000 in Q3 2008.
          -- Diluted earnings per share increased to $0.27, from $0.14 in Q3 2008.
          -- Weighted average number of diluted shares outstanding was 3.95 million
             as of September 30, 2009, compared to 3.56 million as of September 30,
          -- Completed an initial public offering of 1,700,000 ordinary shares at a
             price of $6.75 per share, traded on NASDAQ Capital Market on September
             10, 2009.
          -- Awarded $960,000 in Mountain Torrent Forecasting contracts covering
             eight projects in four provinces.
          -- Awarded $1.6 million Municipal Sewage Treatment contract in Kuancheng
             County of Hebei Province.
          Third Quarter 2009 Financial Performance
          Total revenue was $4.9 million in the quarter ended September 30, 2009, a 131% increase from $2.1 million in the quarter ended September 30, 2008. The increase was mostly because of increased sales of system integration services in the wastewater and tail gas treatment segment, which generated revenue of $3.8 million, or 77.4% of revenues in Q3 2009 compared to $1.2 million, or 58% of revenues in Q3 2008. Revenue from Tri-Tech's other business segment -- water resources management -- was approximately $1.1 million in Q3 2009, accounting for 22.6% of total quarter revenues. 
          Net income in the quarter increased to $1.1 million or $0.27 per diluted share, compared to net income of $506,000 or $0.14 per diluted share in the quarter ended September 30, 2008.
          Gross profit (exclusive of depreciation and amortization) was $1.9 million in the quarter, a 112% increase from $0.9 million a year ago. This strong increase was primarily due to an increase in the number and size of contractual engagements as a result of the growth of its client base and improvement of its project execution capabilities.
          Gross margin (exclusive of depreciation and amortization) was 39.1% compared to 42.6% in the quarter ended September 30, 2008. This decrease was due to relatively higher costs of the hardware products compared to system integration and software products. Gross margins in the wastewater and tail gas business and water resources management segments were 39.2% and 38.7% respectively.
          Operating income was $1.3 million, a 150% increase from $536,000 in the quarter ended September 30, 2008. Operating margin was 27.3%, compared to 25.2% in the three months ended September 30 2008.
          As a certified software hi-tech enterprise, Tri-tech received a partial tax rebate of $26,275 from the Chinese government for value added tax (VAT) paid on sold software. This partial rebate was classified as other income.
          Liquidity and Capital Resources
          The cash balance following the IPO was approximately $10.3 million. As of September 30, 2009, the Company had long-term debt of $69,000 and short-term debt of $695,000. The Company had working capital of $17.4 million. Stockholders' equity totaled $18.3 million compared to $5.8 million as of September 30, 2008. Net cash provided in financing activities totaled $10.5 million.
          Initial Public Offering
          On September 10, 2009, Tri-Tech completed an initial public offering of 1,700,000 ordinary shares at a price of $6.75 per share. Net proceeds from the initial public offering, after deducting underwriting discounts, commissions and offering expenses, totaled $10 million.
          Nine months 2009 Financial Performance
          For the first nine months of 2009, revenue was $10.9 million, an increase of 96.5% over $5.6 million for the comparable period last year. Net income for the first nine months was up 97.3% at $2.5 million compared to $1.3 million for the first nine months of 2008. Diluted EPS was $0.68 compared to $0.36 for the first nine months of 2008.
          Warren Zhao, Tri-Tech's Chief Executive Officer, said, "We are pleased with our Q3 2009 financial results and our first financial report as a public company. We believe our over triple digit growth in Q3 revenue and our operational performance demonstrated the strength of our business model and our competitive position in enhancing water quality and people's health in China. Several factors contributed to our strong performance including our patented technology, the increasing efforts of our sales force and growth of our customer base. We feel confident that our water resources management business and wastewater and tail gas treatment businesses will continue their robust growth through the remainder of 2009.
          "Our business in water resources, flood control and mitigation, water quality monitoring and assessment, municipal water and wastewater management, water reuse, and odor control are poised to benefit from China's massive ongoing investments in infrastructure. Government investment in the water resources sector last year was up over 54% and is expected to increase $11.7 billion in 2009 and $45 billion over the next three years.
          "We are excited to move forward into the last quarter of 2009 and the year 2010 in a strong and flexible financial position. We expect to take advantage of long-term opportunities driven by the urgent need for water treatment projects for commercial, industrial and residential uses and the solid support from the government for water resources projects. We intend to use the proceeds from the IPO to reinforce our competitive position. We plan to undertake new projects in municipal projects, and to focus our research and development on improved water treatment systems to maximize water disposal capacity and disposal rates at a lower cost.
          "We are currently pursuing over 100 smaller river basin flood monitoring and forecasting systems and groundwater monitoring systems for over 100 counties across the country with a market potential of approximately $145 million. Through local distributors and partnerships, we also expect to promote our proprietary products targeting the water monitoring and dispatching systems of the Northward Rerouting of Southern River engineering project with a market potential of approximately $43.5 million.
          "We expect an increase in sales associated with the South-North Water Transfer Project with dozens of major urban water supply tasks and six 
      nation-wide projects of flood forecasting and hydrological monitoring proposed by the Ministry of Water Resources.
          "Based on multiple contracts for sewage treatment plants won in Hebei Province recently, we will continue to target our wastewater treatment business in the Tianjin area and Hebei Province. Within the next few years, Tianjin Binhai New Area plans to construct over 40 large-scale pumping stations and over 30 sewage treatment plants with a total market potential of approximately $8.7 billion. Hebei Province plans to construct over 50 sewage and grey water reuse treatment plants in the next two years with total spending of approximately US$ 1.23 billion.
          "We will also actively pursue opportunities in the industrial wastewater and process tail gas treatment market in the petrochemical industry, such as the SINOPEC Yanshan Plant, the Petro China Jilin Plant, the SINOPEC Anqing Plant, and Dalian Petro China Plant. Currently almost all newly designed sewage treatment plants have odorous gases containment and control requirements. As such, we expect an increase in sales of our proprietary biofiltration odor control systems," Zhao said.
          Conference Call
          Tri-Tech CEO Warren Zhao, President Phil Fan and CFO Peter Dong will host a conference call at 10:00 AM Eastern Time tomorrow November 13, 2009 (11:00 PM Beijing/Hong Kong Time on November 13) to review the company's financial results and respond to questions and comments.
          To participate, call U.S. Toll Free Number 1-877-941-4775 approximately 10 minutes before the call. International callers, please dial 1-480-629-9761. The conference ID number is 4182163. A live webcast of the call will be available at . An MP3 file will be available approximately one hour after the call and a transcript within 48 hours after the call. These will be archived for 90 days via and .